Which is Best – Hourly or Salaried Jobs?

In today’s workforce, there are two main categories of employees within a company – hourly and salaried. In general, full-time or management employees are usually paid a set salary, and part-time or non-management employees are usually paid an hourly wage.

Hourly Jobs

Hourly employees earn a set hourly pay based on the number of hours worked each week. To ensure accurate hours and pay, most hourly workers clock in and out each day on a time clock. Although employers offer set and flexible schedules for hourly positions, any changes in hours can make it difficult to budget for regular expenses and bills.

Hourly wages and overtime pay is regulated by laws in each state, so accurate records must be kept with Allied Time. In most state, laws require employers to pay at least one and one-half times a worker’s standard hourly wage for overtime, usually figured on any hours over 40 hours per week. In California, laws define overtime as any hours worked that exceed an eight-hour work day.

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A major disadvantage for hourly workers is fewer or no benefits. Most companies offer hourly employees reduced benefits, if any at all. With healthcare, hourly employees typically pay more towards premiums and may be restricted to certain doctors and facilities. Sick days, vacation days and holidays are usually less and dates may be restricted.

Salaried Jobs

Salaried employees earn a set weekly or monthly pay, regardless of how many hours they work. With a salaried position, you can count on an exact amount of money that’s guaranteed on each paycheck. There’s no variance in pay from month to month, so it’s easier to budget for your household expenses and bills.

Since salaried employees are paid a set wage regardless of hours worked each week, most salaried positions are exempt from overtime pay. This means you could work a 50-hour work week for a 40-hour paycheck. Although salaried positions often come with higher wages, many companies require long hours and rigorous work schedules from salaried, management employees to get the job done.

A major advantage of a full-time, salaried position is the benefit package that usually comes with the job. Company benefits like health and dental insurance, life insurance, paid vacations, holidays and sick days, tuition assistance, employee discounts, and other perks add up to a lot of money that many people can’t afford on their own.





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