Salary vs. Hourly Pay

Employers usually pay their employees in one of two ways: hourly or salaried. Here are some of the pros and cons of both and what you should consider when looking for a job.

HOURLY PAY

Pros

As an hourly employee, if you work extra hours, you will receive additional pay. Obviously how much overtime you are able to work will depend on your employer.

Cons

With hourly employees, their schedule may not be consistent as a salaried employee and hours may not even be guaranteed depending on your role.

SALARIED PAY

Pros

Salaried employees will usually have higher base salary than their hourly counterparts. They may also have access to better benefit packages or bonuses. Paychecks are regular, making it easier to plan ahead and budget.

Cons

Depending on the level of your job, such as a management position, you may be required to work extra nights or weekends and you will not receive additional pay for this time.