Wage is defined as the remuneration paid to a worker for a specified amount of work rendered. This includes the basic salary, commissions, bonuses, back pays, and non-monetary remuneration such as gift checks and goodies. Wages can be paid on a hourly basis or per output.
Wage rates vary greatly depending on the job description, industry, as well as country or region. Since people usually get jobs depending on their education and skill level, it can be said that a person’s wage is determined by the skill level as well.
However, in most cases, seniority and social structure also dictates the wages that a person will get. The most skilled person does not always get the highest wages.
Furthermore, the region and/or country’s economic standing also affects the wages that people living in that region can expect to get. For example, a grade school teacher in the United States may get $3000 per month. That same grade school teacher, if she was working in a third world country lie the Philippines, will only be earning about $4000 for the entire year.
The disparity in wages, however, is in part offset by the difference in cost of living.
In some countries, the government has instituted a minimum wage, which is actually the lowest hourly rate that an employer can give to its workers. The minimum wage is meant to protect the rights of unskilled and semi-skilled workers to ensure that they at least receive enough compensation to pay for their basic needs.