Wage

Wage is the compensation that an employer pays an employee in exchange for labor or services. It is commonly expressed as an hourly, daily, or piece-rate amount and may be paid alongside salaries, bonuses, or benefits. Wages refer to gross earnings before deductions such as taxes and social contributions, which reduce the net take-home pay.

Wages can be earned through different systems, including time-based wages (hourly or daily), piece-rate wages (paid per unit produced), and incentive-based wages (such as commissions or performance bonuses). Overtime and shift differentials may increase earnings when extra hours or less desirable times are worked.

Legal and policy frameworks regulate wages in many countries. Minimum wage laws set the lowest legally permissible hourly rate. Overtime rules typically require higher pay for hours beyond a standard threshold. Equal pay and anti-discrimination laws aim to prevent wage disparities. Some jurisdictions recognize living wages or prevailing wages for public or unionized work.

Economic factors influence wage levels, including productivity, education and skill, experience, union presence, and labor demand and supply. Wages affect living standards, consumption, and income distribution, and are often analyzed alongside wage growth, real wages, and the wage share of national income.

Labor relations shape wages through bargaining between employers and workers or their representatives. In some markets, wages are determined primarily by individual contracts or market forces. Global differences in wage levels reflect variations in cost of living, regulation, and institutional arrangements, while concerns such as wage theft address unpaid or underpaid earnings in certain contexts.