Salaried positions are typically reserved for supervisors, executives and other related positions. However, other employees are eligible for salaried wages as well. Employers must determine if your position meets certain federal qualifications. In some companies, you may actually be able to choose whether you are an hourly or salaried employee.
The main benefits of a salary vs. hourly wage include a guaranteed annual salary, despite hours worked, and lower health care costs. Salaried individuals agree upon an annual salary. Even if you do not work forty hours every week, you will be paid the same weekly salary. When comparing salary vs. hourly, this is a major benefit, especially if you have to leave work for medical appointments.
Other benefits of a salary vs. hourly wage usually include more vacation time, a 401k plan and a higher hourly rate based upon a forty hour work week. Please note that these benefits depend solely upon your employer. However, every employer offers some type of incentive package for becoming a salary employee.
On the downside, the benefits of salary vs. hourly may not seem worth it if you are asked to work more than forty hours per week. Employers expect salaried employees to work longer hours whenever necessary. Though you may work fifty to sixty hours each week, you’ll only be paid for forty. When extra work is needed, many employers ask salaried employees to perform the work over hourly employees.
Before choosing a salaried position, discuss the average hours you’ll be working each week with your employer. Keep in mind that your employer determines your salary based upon your actual salary plus the cost of your salary benefits.
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