Wages is best associated with employee compensation based on the number of hours worked multiplied by an hourly rate of pay.

1. Wages
Compensation Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Wages
• Wages is best associated with
employee compensation
based on the number of
hours worked multiplied by
an hourly rate of pay.

4. Wages
• For example, an employee working
in an assembly plant might work 40
hours during the work week. If the
person's hourly rate of pay is $15,
the employee will receive a
paycheck showing gross wages of
$600 (40 x $15).

5. Wages
• If the employee had
worked only 30 hours
during that week, her or
his paycheck will show
gross wages of $450 (30 x
$15).

6. Wages
• Because the paycheck needs to
be computed based on the
actual hours worked, the
employee earning wages will
likely receive her or his paycheck
five days after the work period.