A salary or wage is the monetary compensation to a worker for his services. The employer gives a salary to his employee in exchange of a work done. Is one of the bases of the capitalism system.
When the pact is done, obligations and rights for both parties are generated. In case of the employee, his obligation is to fulfil the task assigned, according with working hours and days pacted, while his rights are receive the agreed remuneration, holidays, days off and rest.
The employer obligations are to pay the wages accorded and verify that the employee’s rights are not violated, his rights are to complain if the job is not done properly and apply disciplinary sanctions.
The salary can be pay by cash, bank deposit, in goods and can be a mix of them. Each country slablish a mimimun wage and is a goverment’s duty to control it.
Different Types of Salary
There are different types of salary, the more popular are the fixed salary and performance salary.
1. Fixed Salary
Is the salary that the employee and employer agree by contract. It assumes a prior knowledge of the exact salary. It can be subdivided in:
Monthly
It the salary paid to the employee for each month of work, usually is done at the end of the working month or during the first week of the following.
Fortnightly
It this case, every 15 days the employee charged his salary, so the salary is paid twice a month.
Daily wage
The salary is paid for each day worked.
2. Performance Salary
There is an agreement between the employer and employee about how much the employee will be paid if he fulfill the activity, not matter the time its take.
For example: an arquitect will be paid a certain amount of money when he finished the building, no matter if it take a week or a year.