WHAT ARE EARNED WAGES? - DUDAS - 2025

The wages earned are the amount of money earned by the employees for working during a given period for an employer, but not yet collected. The employer can be a company or institution for which that person works on a permanent basis or contracted for a weekly, biweekly or monthly salary.

While these earned wages have already been earned by the worker, the employer has not yet recorded them in the ledgers at the end of the accounting period. This is due to the fact that sometimes the worker's salary is paid on a date other than the day on which the company's accounting cutoff ends.

Example of earned wages

Assuming that a company pays a worker a salary of 1500 euros on the 28th of each month, but the accounting period ends on the 30th, it means that 2 days of wages were missing in the compensation that must be paid to that worker.

Then those two days, which would be 29 and 30, must be recorded in the company's accounting, to be paid to the worker in the next payment he or she receives along with the rest of the wages.

Difference between salary and salary

The salary refers to the payments or remunerations that the worker receives for his daily work during a period.

These variable payments include income from base salary plus premiums for risk, professionalism, overtime, night time and any other income agreed between the worker and the company.

While the salary is the fixed and periodic amount of remuneration agreed by the company and the worker in an employment contract. Its periodicity can be weekly, biweekly or monthly, depending on the established work regime.

Origin of the term salary

It is the minimum remuneration established by law that a worker receives for the working day.

In theory it should be enough to cover the expenses of a head of the family. The minimum wage was first established in Australia in the 19th century.

Base salary

It is the fixed minimum remuneration that the worker receives, to which other additional remuneration must be added such as salary supplements, seniority or productivity bonuses, commissions, etc.

Nominal Salary and Real Salary

The Nominal Salary is the amount of money that the worker receives for his work. The Real Salary, on the other hand, is the purchasing power that the worker has based on the salary he receives. In this last concept, it is associated with economic variables such as inflation.

Social Salary

It is the remuneration that the State grants to unemployed people, who cannot meet their basic needs due to lack of economic resources.

References

1. Accrued salaries. Taken from accountingtools.com.
2. Salary. Taken from es.wikipedia.org
3. Difference between salary and salary. Taken from meanings.com
4. Minimum salary. Taken from es.wikipedia.org
5. What is the base salary? Taken from jpcblog.es.