Would you prefer to be paid a salary or an hourly wage?
By JenInTN
@JenInTN (27514)
United States
April 9, 2009 4:25pm CST
I have heard some ups and downs for being paid in either way. I know that most people being paid salary do not get overtime pay but the people getting paid by the hour lose money if they have to be out of work. I think I would prefer to be paid by the hour but I guess it would depend. I am paid by the hour and sometimes wonder if it would be better to be on salary. Which would you prefer and how are you getting paid now?
9 people like this
56 responses
@ANTIQUELADY (36440)
• United States
9 Apr 09
been there, done that jenn. u are better off getting paid by the hour. once they put you on a salary they expect u to do all the grunge work, plus ur on work etc. i would alot rather be paid by the hour. i have done it both ways.
@ANTIQUELADY (36440)
• United States
10 Apr 09
know what u mean. jenn, u may have already told me what kind of work u do but if u have i've forgotten. old age, u know.
@ReVeRb1080 (43)
• United States
9 Apr 09
I like hourly myself. The more you work, the more you get paid it's as simple as that.
2 people like this
@sharra1 (6340)
• Australia
13 Apr 09
Interesting. In Australia things are different. I have spent most of my life working for an annual salary. The salary was set annually according to an hourly rate. So I worked a 40 hour week at whatever dollar per hour rate that my job paid.
If I worked more than 40 hours in the week I was paid overtime. I forget what the cut off was but it started at time and a half and went to double time after a certain number of hours. Sunday was double time all day and if the person did not have an 8 hour break between finishing work one night and starting the next day then it was double time until they got that long a break. It cost my boss a fortune once when she failed to send give someone a long enough break one night.
Other places I have worked did not pay overtime but they had a system called time off in lieu instead. It was still time and a half and it enabled people to take days off in addition to their holidays. I thought it was a wonderful system.
All this was in the employment contract and the hourly rate was set at a different rate for every level of worker. Above that level were the executives and they were all on contracts. Every company I worked for had this system. I have never worked more than 8 hours a day without being paid overtime in some form either money or time off.
I much prefer this system to the uncertainty of being employed by the hour. I have worked that way as well and it was never a matter of worker as many hours as I wanted. The employer always set how many hours I worked. This may be different in some industries.
@JenInTN (27514)
• United States
14 Apr 09
That sounds like a great system Sharra. Where I am if you are paid by salary there is no compensation for overtime for the most part. I'm sure there are companies that are more fair with their employees about their time but for the most part once you agree on a salary..that's all you get. There is the upside that if you have to be off or work a short day you still get paid but for those that work a lot of overtime..it's sometimes not a good option to take. Thanks for your input.
@ElusiveButterfly (45940)
• United States
9 Apr 09
It depends on what type of job you have. I once was employed by a company that gave me an hourly wage. Overtime was good! When I became salary they worked me like a dog! So, I would say that hourly wage is the way to go.
@spicysweetie21 (2573)
• United States
9 Apr 09
I would prefer to be paid hourly because I do know people who got many extra hours while on salary that were not paid, but on the other hand I have seen some managers abuse the salary system and leave work early because they can get away with that, and they do it all the time :(. There are certain other cases where salary is helpful like my boyfriend, he is a manager for the pizza stands in the local arena but he only gets work when there is an event, so since he got switched to hourly he has really been struggling when the events slow down and he doesn't have many work hours
2 people like this
@nanajanet (4436)
• United States
9 Apr 09
It would depend on the job. If the job is guaranteed a minimum amount of hours, and the amount of hours can fluctuate, cannot go under that minimum amount, and I am paid for vacation time, too, then hourly, this way, if I work more, I get paid more. If I am working a set amount of hours per week and paid vacation and no overtime available, then a set weekly, or whatever, salary.
2 people like this
@renemouche (843)
• United States
10 Apr 09
I get paid by the hour but I don't get overtime. My pay check varies depending on how many days are in the paycycle. I think I would be ok to be paid a salary depending on how much it is. It would be nice to know exactly what your pay check will be everytime but I would miss that little extra during the time were I had more days during a pay cycle.
Then again if my salary cause me to make more per pay check that I make now I would like a salary.
@dpk262006 (58678)
• Delhi, India
13 Apr 09
Hi! Jen!
We are paid salary on the monthly basis and we have become used to it. Drawing salary on daily or weekly basis does not sound much attractive to me. It is always a great pleasure to get lot of currency notes together at the end of the month. We anxiously wait for the salary day.
@dpk262006 (58678)
• Delhi, India
15 Apr 09
Yes, the large amount gives a kind of satisfaction and we can easily make our budget.
@greenline (14838)
• Canada
9 Apr 09
I prefer salary basis. That's more secure, and Company benefits can be better, depending on the Company ofcourse.
@chrislotz (8137)
• Canada
10 Apr 09
I don't know if I have a preference but most of my working life I was almost always being paid by salary. I worked in an office enviroment and got paid by salary as most office do. The advantages to working by salary is if you miss some days of work or even hours of work, you still get paid for it. And depending on the company even if you miss work for a longer period they still pay you. At least that was the case with me a few times.
I worked for the same company for 25 years so that probably had a lot to do with it. After about 10 years on the job I had to have surgery and missed work for 6 weeks. They paid me for the whole time because we didn't have insurance then, the company never offered it then.
And then after working for them for 17 years I had to have another operation and that time I missed 10 weeks of work and again they paid me. I think I was lucky though because not all companies will do that.
Now there are also some disadvantages to working by salary too. For example, when I worked overtime I didn't get paid for it. I didn't get to bank it either, but most companies will let you bank the time and take time off for it. But in the long run, for me, I got more money from them than the amount of overtime I put in over the 25 years I worked for them.
So I don't know which I prefer but I am self employed now and only get paid if I work.
1 person likes this
@JenInTN (27514)
• United States
10 Apr 09
Hi chrislotz! That is a perfect example of how a salary worker can benefit from being paid that way. We never know when something may come up and we have to miss work and salary guaruntees our paychecks. I remember you saying you and your daughter clean houses together. Was it hard to establish your business or did you get clients pretty easy? I was wondering because I clean on the side myself sometimes and have often considered venturing out on my own..lol..Thanks for responding.
1 person likes this
@sharra1 (6340)
• Australia
13 Apr 09
Most curious. In Australia I have worked for salary (we call it ongoing employment, contract and as a casual. Working for a salary does not mean I work overtime and do not get paid. If the employer does not pay me overtime or some form of compensation like time off in liew then I do not work overtime.
I like the security of being securely employed in an ongoing basis with job security since there are rules about how such people can be made redundant. I have also worked as a casual who is paid by the hour and can be sacked without notice.
Casual work gives no job security. If you are working on a fixed contract then at least you know how long you will have a job for, casuals are hire by the day. It gives the person the freedom to change jobs as they please but it also means that they can get no credit so they cannot take out loans etc.
I suppose it you were working on a 5 year contract that might not be so bad but I much prefer being employed in an ongoing position that I know is secure and lets me plan my finances. I have worked a great deal of overtime in my life but I have never worked overtime without being paid and I would never do so.
@JenInTN (27514)
• United States
14 Apr 09
I can see how the system you are used to would be better than a hourly paid job but a lot of employers in my area take advantage of the salary paid employee. They enlist them at a salary and work them as much as possible without the option of overtime. I think that is it depends on the job too as there are higher salaries for this or that position and the hours are pretty much set. There is a law here also that allows employers to hire and fie at will without cause that applies to both salary and hourly employees. This also gives the employee the right to leave without notice and fear of a bad reference. Thanks for responding.
@benhilo (871)
• Tripoli, Libya
10 Apr 09
Many of my jobs have been hourly and I like it that way except if I can bid a job. I make more by bidding because if you bid a job at say 10 hours but you only took 8, you make an extra two hours for nothing. I am a contractor by the way.
@emilie2300 (1882)
• United States
10 Apr 09
I would have to say probaly salary. That way I know what I am getting each check and I am garunteed that amount when I get paid.
I have been paid by Salary for the last 11 years now. I was paid hourly at my other jobs that I have had years ago.
1 person likes this
@emilie2300 (1882)
• United States
10 Apr 09
No problem.. Have A Happy Easter. I think it makes it easier on bosses also instead of figuring out hours..
@carcher777 (141)
• United States
9 Apr 09
I have been paid both ways, and generally I find that hourly is a better deal. Once you are on a salary, the company generally seeks to maximize their investment in you by making you work a lot of what WOULD be overtime if you were on an hourly contract. The flipside of this is that most of the better paying jobs in the world are salaries rather than hourly. In fact, 'hourly' even has the connotation of being a poor grade of job. I think it all depends on what motivates you. Personally I like the idea of making more money when I have to work extra hours.
@JenInTN (27514)
• United States
10 Apr 09
Oh..I agree. If I have to work overtime I definately want to be paid for it. I work for an hourly wage now and once had a friend within the company that was on salary. After taking the amount of hours he worked and dividing into his salary...I actually made a little more.
@amirev777 (4117)
• India
10 Apr 09
hi
yeah there are pros and cons in both the wayz that u can get paid-but on shore jobs u r better off being paid on hourly wages-bcoz u knw how many hours u have to work everyday-yes u r right that in such type of payment-u really lose when u r out of work.but i m a seaman, i sail for 4-6 months-there we are better off being paid per month coz one has to be standby for 24 hours.
1 person likes this
@goldenapple951 (455)
• United States
13 Apr 09
Im going to say hourly. Because they really work you on salary no overtime pay.
At least that is the experience with my husband. When he works salary they work him like a mule. He gets paid great bucks but works alot of hours.
Being an hourly employee is different because Employers tend to be tight with the money and think twice if they want you to work overtime.
@billgatexp (912)
• United States
10 Apr 09
yes hourly would make sense to me. i really like being paid by the hour. it makes me work harder
1 person likes this
@smartjack (520)
• India
10 Apr 09
i would prefer getting hourly wages, because i like getting money in regular intervals. in fact everybody likes to be paid hourly, dont they?
1 person likes this
@JenInTN (27514)
• United States
11 Apr 09
Well..there have been some that have responded that a salary is better for them. I think it depends on the job and how many hours you work. If you do overtime..hourly. If you have a set amount of hours..well..salary may be the best. Thanks for the response.
