Some people use the terms wage and salary interchangeably, but there’s a slight difference. Wages typically refer to hourly, weekly, or monthly amounts of money a worker receives for the work performed. The wage can vary based on the number of hours worked, so the worker doesn’t receive a fixed amount every week or month. Salary refers to the fixed annual employee compensation, paid in intervals determined by the employer. When we say annual salary, we usually mean total employee remuneration—gross salary—the cash value of the compensation, including statutory employee benefits, such as social security and health insurance.