Salary vs. Hourly?

Question

I just got a promotion here at work and will be going salaried. I've always been paid hourly at all my jobs i've ever had so I was wondering what this entails. Thanks ahead of time!!

Answer 1

The basic difference is that with salary you will get paid a fixed amount regardless of the hours you are actually at work, and you won't have to submit time cards. When you are salaried you generally won't get paid overtime. But on the other hand, if you only work 6 hours one day instead of 8, you typically still get paid for 8.

One of the biggest benefits of a salary is that your income is very predictable--you know ahead of time how much you'll receive on each paycheck so it makes it easier for you to budget your money and for you to figure out what things you can and can't afford.

Also, depending on the company, salaried employees usually get better bonuses than hourly workers. Typically your bonuses will be based on a percentage of your pay--i.e. you might get a bonus for 5% of your annual salary or something.

One other difference, which also depends on the company, is that usually salaried workers earn paid vacation time where as hourly workers might not. Typically when an hourly employee doesn't work, they don't get paid. A salaried employee may have earned several days of vacation time and will still be paid even when they aren't at work.

Answer 2

Differant companies work it Differant ways but this is the way at the company I work at. Hourly rate you get paid for how long you are there, some cases more then 8 hours a day is overtime, some it is more then 40 hours a week. Salary, you get a set amount and they work you as long as they want. Plus side to salary at the company I work at is you get the same check even if you take a week for vacation or you take a day off. down side is, you get the same check whether it is 40 hours or 60 hours, but they do allow you to build up comp days for so many hours over, so then you get to work less then 40 hours at a later date and still get your 40 hour pay, or in the case here, your regular monthly pay. Salary benifits are better most of the time also.

Answer 3

Each company's expectations are different, you should speak to your HR dept for more details. Typically the difference is that you now could work more or less hours and still get paid the same. However, you still need to use sick or vacation days if you're going to be out - why is beyond me, but that's the way it is! Like I said, check with your HR dept. If your company doesn't have one, speak to your manager. Don't be afraid to tell them that you've never held a salaried position before. They may just assume you have and therefore would know the difference.

Good luck & CONGRATS!!!

Debbie Helbing
http://celestialsoapco.tripod.com

Answer 4

Hi,

If you will be an exempt employee it means you won't get overtime, if you are non-exempt, you still might. Mostly, it means that you won't get paid extra for staying 15 minutes late or working on your lunch. But it also means that you will always be paid the same amount no matter what the quality of your work or if you take breaks or lunch. It's a more stable and more consistent method of getting paid and it's nice to count on stable income and vacation too. Congratulations.

Answer 5

Yearly salary is usually for professional jobs, and don't need supervisors. This salary is fixed on your weekly/bi-weekly pay check. People have to work at least 8/day 4days/week, but actually they have to work more hours than that to finish their projects. The working hour is flexible, and sometimes the less hour as long as they finish their project. But believe me, you will never finish your work, you always have something to do.

Anyway, Congratulation :)

Answer 6

It means you will be paid a set amount not based on the number of hours you work. So you won't get paid extra if you work overtime.