What Is the Difference Between Salary and Wages?

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In workplaces throughout the United States, companies’ employees are often categorized as salaried workers or hourly workers. Salaried workers, as you might guess, are paid salaries, while hourly workers are paid wages. Though the terms "wages" and "salary" are sometimes used interchangeably, there are some key differences between the two that are important to understand.

"Salary" and "wages" don’t just refer to the ways employees are paid, either. Depending on the company, there are different expectations, benefits and requirements for both types of workers. Continue reading to find out what constitutes a salaried employee versus an hourly employee, along with several advantages and disadvantages you can expect with each.