Monthly salary or hourly wage, which one is better? 

You finished your Masters in Fine Arts and after interning for what seemed like a lifetime, you have the opportunity to take on a full-time role but there is a big decision you need to make and maybe not be aware of it. One of the biggest decisions is whether to ask the hiring manager to structure the role on a monthly salary or as an hourly-based employee. It impacts not only your own income but also the business’s financial health and long-term goals.

This article will guide the main difference between salary and hourly wages and why these two terms are used in business. After reading this article and using the calculator linked below, you should have a better understanding as to what will work best for you.

Before getting hired, a person must know about the company’s salary package and per-hour paycheck with an hourly paycheck calculator if the company pays equal or above minimum per-hour wage. 

two hands holding money as they decide to take an hourly wage or a salary

Salary vs Hourly wage

Salary is simply a basic pay rate that does not contain any other type of compensation like commission, bonuses, stipends, reimbursement or other benefits such as retirement contributions and health insurance plans.

A  salary is based on the yearly time frame and employees are paid weekly, biweekly or semimonthly or monthly schedule.

A fraction of the pay is paid from the annual salary. A person must be paid a minimum of $684 per week to qualify as salaried, which excludes the person from overtime pay eligibility. 

With hourly paycheck calculators, annual salary can be converted into wage per hour to check if the salary is equivalent or greater than the minimum wage rate. 

The amount of money an employee is paid per hour basis is an hourly wage. In a wage, an employer pays on the amount of hours they work each pay period.

An hourly worker’s pay is determined by the state or federal minimum wage, and may last for weeks or months.

Hourly income does not include perks like retirement pensions or health insurance, which are additional forms of remuneration.

With an hour payment calculator, an employee can find its rate on a per hour basis. He can get the right rate if informed before the interview. Negotiation becomes easier with an hourly pay calculator. 

According to the Fair Labor Standards Act, which sets the minimum wage and worker protections, an employee must be paid at least 1.5 times their hourly pay for any time beyond 40 hours in a week. 

Pros and Cons of hiring Salary person 


There are many benefits to paying salaries to employees 

  • Payroll and accounting will be simplified by reducing fluctuation in the pay rate
  • Due to stable pay and flexible schedule, a company can attract employees
  • Companies do not have to pay overtime wages during periods that need extra work


  • You can not pay less during periods that require less or no work in a fixed salary
  • During the slow season the cost can not be adjusted when revenue fluctuates. 
  • An employee contribution is considered on intangibles rather than time present in the office.

A salary offered can be converted into wage per hour with hourly paycheck calculator

To determine which suits the company for the role hiring. 

Pros and Cons of hiring an hourly wage employee


  • Employee wages can be adjusted for personnel costs by reducing worker hours. 
  • Hourly-based workers are part-time employees who don’t expect extra benefits. 
  • The contribution of employees can be easily accessed based on time present on the job. 


  • If the working schedule varies costs fluctuate for each pay period
  • For overtime work a company has to pay a higher wage according to the law mentioned above.
  • Experienced employees are not interested in hourly wages as they expect autonomy, stability, and benefits. 

Wrap up!

For business, it is better to employ both types of employees hourly paid or salary paid. Decide which compensation will benefit the company.

Hourly wage is common in service industry where on site contribution is necessary and people who are interested in part-time jobs.

For hiring senior-level roles people are paid on salary basis, which provide a stable paycheck and benefits.

A fixed salary has an advantage for employees in how much business a company does not affect.

The employer can easily estimate the hourly rate with the help of an hourly paycheck calculator.

A gross income is often a standard for estimating and compare salary and gross income calculator hourly find the hour base the company is paying. 

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