Hourly Wage
What does it mean
A person who earns an hourly wage has their income fluctuate directly with the number of hours worked. In this exchange, the individual is trading their time for compensation.
Why does it matter
Understanding the stability of an individual’s income can be important. In most circumstances, the number of hours worked by a person doesn’t fluctuate from pay period to pay period; however, if it does, it will impact the hourly earner faster than the salaried employee.
Other Relevant Terms
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