Meaning and types of wages

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Today we're going to read a simple and small topic which is about wages and its types.

Note: Share your thoughts in the comments and together make the subject very easy and practical to understand.

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Wages

Wages are remunerations which are paid to a labour for both mental and physical work done by them. in simple words, it is the amount/Price  which is paid by the firm or any organization for contribution of a person in the process of production. It may be mental work or physical work.

A labour is considered to be a significant factor in the production. without his contribution or efforts, The other factors such as land and organization will remain unutilized or unproductive.

Types of wages

Wages are classified into 4 types. They are: Time, Peace, Money and Real wages.

Time wages 

If the wages are paid according to the time it is called as a time wage. generally it is for short period and many employees receive their wages in this form.

Peace wages 

The wages are paid according to work done by a laborer. it is calculated by the efforts spent by a person in the process of production followed by the time. It brings equal economical rights to the labours in the industry.

Money wages 

If wages are paid in the form of money are called as money wages. in simple words, employees or labours receives their income in the form of printed money or optional cheques, online transfers, receipts, etc. It is also called as nominal wage because it is for short term and labour can be exchanged quickly and easily.

Real wages

The purchasing power of money wages are called as real wages. if the price level decreases with the increase of purchasing power it is called as real wages.

in this case the price level will be low and the purchasing power will be high. 

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The end

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