Wages Definition

Wages are payments of money made for labor or services rendered. Wages are usually governed by an employment contract and are tied to an hourly, daily, or piecework basis of compensation. For example, a ditch digger might be paid $12 per hour while a factory worker might be paid $22 per part assembled. Wages are a common form of labor remuneration; the other common form is salary (where remuneration is not tied directly to hours, days, or piecework).