Annual wage definition and meaning
An annual wage is the amount of money an employee earns in a year. Specifically, it refers to a fixed salary, or total expected payment, for the work an employee completes. It is usually a before-tax estimate, or a gross wage before deductions have been applied.
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Annual wages are different from total annual compensation because they don’t include the value of any other benefits, bonuses, insurance plans, paid time off, or other perks such as a company car. Net wage is another term that refers to the annual wage minus any deductions, such as payroll taxes.
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