Which term is used when workers are paid for the hours they work?

Which term is used when workers are paid for the hours they work?

• A. Piece Rate
• B. Wage
• C. Salary
• D. Net Pay

Answer: (B)

Pay based on hours worked is called wages. Wages are calculated from an hourly rate times the hours you actually work, so earnings change with the amount of time spent on the job (and can include overtime). This differs from a salary, which is a fixed amount paid regularly regardless of hours, and from piece rate, which is paid for each unit produced rather than for time. Net pay is simply the take-home amount after deductions, not the method of pay. So the term used for pay tied to hours is wages.

Pay based on hours worked is called wages. Wages are calculated from an hourly rate times the hours you actually work, so earnings change with the amount of time spent on the job (and can include overtime). This differs from a salary, which is a fixed amount paid regularly regardless of hours, and from piece rate, which is paid for each unit produced rather than for time. Net pay is simply the take-home amount after deductions, not the method of pay. So the term used for pay tied to hours is wages.