Hourly Wage
A compensation scheme that pays an employee a set amount for each hour worked.
Hourly pay suits work measured in time rather than in output, which is why counter, service, and shift-based roles use it. The legal minimum wage sets a floor, and competition for skilled people regularly pushes the posted rate above it.
Often Confused With
- Annual Salary
- An hourly wage pays for time actually worked and rises with hours; a salary is a fixed yearly amount that does not move with the week's hours.
Taught In
See Also
4.1.D.2 · 4.1.D.3