A wage is money an employer pays an employee for work done, based on time, task, piece, or commission under contract. There are hourly and daily wages, with examples like construction and factory workers. Wage is calculated by multiplying the hourly/daily rate by the hours/days worked. An example demonstrates calculating a construction worker's wage.

Salary is a fixed, regular wage typically paid monthly, semi-monthly, or weekly, common for professional or managerial positions (e.g., teachers, engineers). Annual salary is the total earned in a year, monthly is the fixed amount per month (annual salary divided by 12 or daily wage multiplied by 24 days), semi-monthly is twice a month (monthly salary divided by 2), and weekly is the income received in a week (annual salary divided by 52 or daily wage multiplied by 6 days). Examples illustrate calculating monthly and semi-monthly salaries.

Overtime pay is extra compensation for working over 8 hours, typically an additional 25% of the regular wage. Specific rates apply for work on rest days, special holidays (1.3 times daily rate), regular holidays (double pay), and regular holidays falling on a rest day (2.60 times daily rate). Night shift differential is also paid for work between 10 p.m. and 6 a.m., multiplied by 1.10.

Commission income is earned as a percentage of sales. It can be pure commission or a basic salary plus commission. Common jobs include real estate agents, sales representatives, travel agents, loan officers, and insurance agents. An example shows how to calculate total income for a sales agent with a basic salary and commission on sales.

Piecework earnings are based on the number of items or products completed. This is common in industries like garments (sewers, tailors), footwear (assemblers), handicrafts (decor makers), printing (folder, leaflet folder), and agriculture (peelers, packers). An example demonstrates calculating piecework earnings for a fruit packer based on the number of mangos packed.