welcome to class
Wages and Income are closely related. A wage is what people get paid for work or service on a periodic basis. Wages can be paid for a job done in a day, week or month. Wage is not paid for the time or day not worked. Wages is tied to the work people do.
On the other hand, an Income is the total amount of money that one gets from different sources during a period of time. Income include wages one is paid at work, plus the money one gets as gifts, investments, rents from their properties, among others. Income is more than the wages people earn.
Reasons Why People Work
People work for various reasons:
- To earn money (salary, wages/income) to sustain themselves as well as families.
- We like to use our skills or talents or contribute to society.
- To be productive or useful to our communities.
- To sustain our lifestyles.
- To put into practice what we have learnt as teachers, engineers, scientists or farmers.
- To live well.
- To help others.
Rewards for Working
When one work, rewards or remuneration will come in different ways:
- Regular payment of salary which usually come every month.
- Allowances such as money for one’s health, transportation and housing.
- Bonus: This is a special payment which some employers pay the employees to mark the end of a successful working year.
- Regular promotion by the employer.
- Prizes are also given to workers for long service.
The reward for working are not all about money. Some other kinds of rewards are”
- The satisfaction of helping and contributing to society.
- Succeeding in your profession.
Reasons Why some People Earn Different Salaries
People get paid different salaries for different reasons. Here are some of the reasons.
- Differences in levels of qualifications
- Quality of work done
- Value of services
- Amount of experience
Wages may increase for a number of reasons
- Employer’s Incentives
- Trade union activities
- Economic growth
Problems/Challenges of Wages and Income Distribution
- Low wages
- Delay in payment of salaries.
- Uneven wage and income distribution.
- Non recognition
Standard of living is how well or badly he or she lives. The standard of living can be measured by looking at factors like how well a person ears and the kind of housing and environment the person live in.
Income has to be managed. This means that we have to make careful decisions about how we spend and save our income to ensure that we will always have enough.
There are a number of ways people use their income:
- Living expenses