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Distinguishing Income, Pay, Paycheck, Payroll, Earnings, Wage and Salary in English

Income, Pay, Paycheck, Payroll, Earnings, Wage, and Salary are quite similar, but each term is used in different contexts. In this article, let's learn about the definitions, meanings, and how to distinguish the usage of Income, Pay, Paycheck, Payroll, Earnings, Wage, and Salary together with PREP!

I. What is Wage?

Before distinguishing Income, Pay, Paycheck, Payroll, Earnings, Salary and Wage. Let's learn about the definitions, words, and phrases associated with Wage together with PREP!

1. Definition

What is Wage? According to the Cambridge Dictionary, Wage is pronounced as /weɪdʒ/, this word acts as a noun, meaning: a particular amount of money that is paid, usually every week, to an employee, especially one who does work that needs physical skills or strength, rather than a job needing a college education. For example:

The job pays very low wages.
Robert gets a good wage because he works for a fair employer.

2. Words/phrases associated with Wage

Below is the list of words and phrases associated with Wage:

Words/phrases associated with Wage	Example
Get/ earn/ is paid wage	After completing the project, Maria was excited to get wage for the month.
Wage war on	The government decided to wage war on corruption, implementing strict measures to combat dishonest practices.
A daily/ hourly/ weekly wage	Many laborers in the construction industry are paid a daily wage.
A high/ low wage	Jobs in the technology sector often come with a high wage.
A wage cut/ increase/ rise	Due to economic challenges, the company had to implement a temporary wage cut for its employees.
Pay a fair wage	The company prides itself on paying a fair wage to its workers, ensure they are compensated appropriately for their efforts.
An average wage	In that region, the average wage for entry-level positions is relatively modest compared to urban areas.
Fair/ good/ low wages	Despite working long hours, many employees in certain industries struggle with low wages, making it difficult to cover basic living expenses.

II. What is Salary?

Salary differs from Wage in certain ways. To distinguish Wage from Salary, Income, Pay, Paycheck, Payroll, and Earnings, let's learn to understand the definitions, as well as words, and phrases associated with Salary.

1. Definition

What is Salary? According to the Cambridge Dictionary, Salary is pronounced as /ˈsæl.ɚ.i/, this word acts as a noun, meaning: a fixed amount of money agreed every year as pay for an employee, usually paid directly into his or her bank account every month. For example:

John’s net monthly salary is €2,500.
Lisa is on quite a good salary in her present job.

2. Words/phrases associated with Salary

Below is the list of words and phrases associated with Salary!

Words/phrases associated with Salary	Example
An annual/ a monthly salary	Employees at the ABC company receive a fixed monthly salary.
Be on a salary of something	Anna is on a salary of $60,000 per year, with additional performance-based bonuses.
Pay somebody a salary of something	The company decided to pay its top executive a salary of $150,000.
Earn/ get a salary	On the 30th of each month, I will get a salary.
High/ low salary	Many entry-level positions come with a low salary, but they offer valuable experience for career growth.
Salary increase/ cut	After months of hard work, Jane finally received a well-deserved salary increase.
Starting salary	The starting salary for new graduates at the company is competitive, attracting top talents.
Salary and benefits	The job comes with an attractive salary and benefits package, including health insurance and retirement contributions.
A competitive salary	The company offers a competitive salary to attract skilled professionals in this field.
Average salary	In that industry, the average salary for mid-level positions is around $70,000 per year.
Basic salary	The basic salary for the position is $500, with the potential for additional bonuses based on performance.
Net salary	After deductions for taxes and other expenses, the net salary is the amount that reflects in the employee's bank account.

III. What is Income?

Next, let's learn to understand the definitions, as well as words, and phrases associated with Income before comparing the differences between Wage and Salary, Income, Pay, Paycheck, Payroll, and Earnings.

1. Definition

What is income? According to the Cambridge dictionary, Income is transliterated as /ˈɪn.kʌm/, this word serves as a noun, meaning: money that is earned from doing work or received from investments. For example:

Average incomes have risen by 4.5 percent over the past year.
I haven't had much income from my stocks and shares this year.

2. Words/phrases associated with Income

Let's take a look at the words and phrases associated with Income in the table below!

Words/phrases associated with Income	Example
An income of	After years of hard work, Jisoo enjoys an income of over eight figures.
Earn/ have/ receive (an) income	Freelancers often receive income irregularly, depending on the projects they undertake.
Generate/ provide (an) income	The rental property provides a steady income for the landlord every month.
Income from/ on something	A significant portion of her income comes from investments in the stock market.
Family/ household income	Financial advisors recommend tracking household income and expenses to manage finances effectively.
Annual/ monthly/ quarterly income	When applying for a mortgage, banks typically ask for details about your annual income.
After-tax/ post-tax, before-tax/ pre-tax income	It's important to consider your after-tax income when budgeting for expenses and savings.
A high/ low income	Careers in technology often come with the potential for a high income due to the demand for skilled professionals.
Additional/ extra income	To supplement her salary, she takes on freelance projects to earn some extra income.
Current/ future income	Assessing your current income is essential for making informed financial decisions.

IV. What is Pay?

Next, let's understand the concept, usage, as well as words and phrases associated with Pay to accurately distinguish Income, Pay, Paycheck, Payroll, Earnings, Wage, and Salary!

1. Definition

What is Pay? According to the Cambridge Dictionary, Pay is pronounced as /peɪ/, this word acts as a verb and a noun. Let's find out the meaning through the examples below!

Pay acts as a verb, meaning: to give money to someone for something you want to buy or for services provided/ for work that they have done. For example: How much did you pay for the tickets?
Pay acts as a noun, meaning: the money you receive for doing a job. For example: The current starting pay is about $500 a week.

2. Words/phrases associated with Pay

Let's summarize with PREP words/phrases associated with Pay in the table below!

Words/phrases associated with Pay	Example
Executive pay	The CEO's executive pay package includes a generous salary, bonuses, and stock options.
Redundancy/ severance pay	Employees who were laid off due to restructuring were entitled to redundancy pay as compensation.
Holiday/ vacation pay	During the festive season, employees often receive extra holiday pay for working on public holidays.
Overtime/ retirement pay	After decades of service, employees receive retirement pay as part of their pension benefits.
Hourly/ monthly/ weekly pay	Some part-time workers receive hourly pay, depending on the number of hours they work.
A pay hike/ increase	The employees were delighted to hear about the upcoming pay increase that will take effect next month.
A pay cut	In times of economic downturn, companies may implement a temporary pay cut to manage expenses.
A pay award/ deal/ settlement	The outstanding performance of the team led to a pay award, recognize their hard work and achievements.
The starting pay	For entry-level positions, the starting pay is $20 per hour, with opportunities for advancement.
Low/ high pay	Jobs in certain industries, such as finance and technology, often come with high pay due to the specialized skills required.

V. What is Paycheck?

To accurately distinguish Income, Pay, Paycheck, Payroll, Earnings, Wage, and Salary, let's understand the definition of Paycheck! What is Paycheck? According to the Cambridge Dictionary, Paycheck is pronounced as /ˈpeɪ.tʃek/, this word acts as a noun, meaning: the amount of money a person earns, a check used to pay an employee the amount of money the employee has earned. For example:

I just get a small paycheck every month.
Peter says his expenses are rising faster than his paycheck.

VI. What is Payroll?

To accurately distinguish Income, Pay, Paycheck, Payroll, Earnings, Wage, and Salary, let's understand the definition of Payroll! What is Payroll? According to the Cambridge Dictionary, Payroll is pronounced as /ˈpeɪ.roʊl/, this word acts as a noun, meaning: a list of the people employed by a company showing how much each one earns; the total amount of money paid to the people employed by a particular company. For example:

The company payroll carried five product managers.
The company is growing fast, and increasing the number of staff on its payroll.

Words/phrases associated with Payroll:

Words/phrases associated with Payroll	Example
Payroll tax	The proposed budget includes a 4% payroll tax on employers that do not provide health benefits.
Payroll check	Every two weeks, employees eagerly await their payroll checks.
Payroll giving	The company encourages philanthropy by offering a payroll giving program. program.
Payroll deduction	The employee requested a payroll deduction to cover the cost of health insurance.
On the payroll	They had 77,000 employees on the payroll.

VII. What is Earnings?

To accurately distinguish Income, Pay, Paycheck, Payroll, Earnings, Wage, and Salary, let's understand the definition of Earnings. What is Earnings? According to the Cambridge Dictionary, Earnings is pronounced as /ˈɝː.nɪŋz/, this word acts as a noun (always in plural form), meaning: the amount of money that someone is paid for working. For example:

Average earnings for skilled workers are rising.
JPT Microsystems reported earnings that were slightly better than the market had been expecting.

Words/phrases associated with Earnings:

Words/phrases associated with Earnings	Example
Immoral earnings	Engaging in illegal activities led to immoral earnings that eventually results in legal consequences for the individuals involved.
Real earnings	Adjusting for inflation provides a clearer picture of an individual's real earnings, reflecting the actual purchasing power over time.
Core earnings	The company emphasized core earnings, excluding one-time gains or losses, to provide a more accurate representation of its ongoing performance.
Annual earnings	Employees eagerly await their annual earnings statements, summarizing their total income for the past year.
Average earnings	Economists use data on average earnings to analyze trends and assess the overall economic well-being of a population.
Earnings growth	Investors are often interested in a company's earnings growth, as it indicates the potential for increased profitability over time.
Earnings quality	The auditor scrutinized the financial statements to ensure the accuracy and reliability of earnings, assessing the overall earnings quality.
Earnings report	The quarterly earnings report revealed higher-than-expected profits, leading to a surge in the company's stock price.
Earnings management	Some types of earnings management may comply with accounting rules.
Earnings estimate	Analysts provided an earnings estimate for the upcoming quarter based on market trends.

VIII. Distinguishing Income, Pay, Paycheck, Payroll, Earnings, Wage and Salary

How do Income, Pay, Paycheck, Payroll, Earnings, Salary, and Wage differ? To know when to use Income, Pay, Paycheck, Payroll, Earnings, Wage, and Salary in different situations, let's explore the comparison table below together.

	Part of speech	Meaning	Example
Income	Noun	All monetary sums that a person/family/ company/country earns from various sources including salary, money earned from investments, bank interest, dividends, etc.	John’s income includes earnings from his job, rental properties, and dividends from investments.
Pay	Noun Verb	The amount of money that a person earns within a fixed time.	John receives his pay every two weeks for the work he does at the local factory.
Paycheck	Noun	The money is paid in the form of a paper check or direct bank transfer to an employee.	John eagerly opened his paycheck to see how much he had earned for the month.
Payroll	Noun	A list or total amount of salaries that a business must pay to all of its employees within a specific time	The HR department is responsible for processing the entire company's payroll.
Earnings	Noun	The amount of money that a person is paid for the work they do	John's earnings increased significantly after he started a successful online business.
Wage	Noun	The amount of money a person receives based on hours worked or products completed	John is paid an hourly wage for each hour of labor on the construction site.
Salary	Noun	The regular fixed amount of money an employer pays to an employee periodically, usually monthly or annually.	As a manager, John receives a fixed salary every month, regardless of the number of hours he works.

IX. Exercise to distinguish Income, Pay, Paycheck, Payroll, Earnings, Wage and Salary

To understand the difference between Income, Pay, Paycheck, Payroll, Earnings, Wage, and Salary, let's complete the exercise below!

1. Exercises

Choose the correct answer: Income, Pay, Paycheck, Payroll, Earnings, Wage or Salary

More help is needed for people on low _______.
1. Incomes
2. Pay
3. Paycheck
Family credit is reduced as _______ rise.
1. Payroll
2. Earnings
3. Wage
The company found that the extra training really did _______ dividends.
1. Pay
2. Paycheck
3. Payroll
Mary's _______ comes from various sources, including her full-time job, freelance work.
1. Income
2. Pay
3. Paycheck
After completing the project, Sarah expects to receive her _______ for the hours worked.
1. Earnings
2. Wage
3. Pay
Tim eagerly opened his _______ to find out how much money he earned for the month.
1. Earnings
2. Paycheck
3. Wage
The _______ department is responsible for managing the company's employee payment system.
1. Wage
2. Salary
3. Payroll
The author's _______ from book sales have increased since the novel became a bestseller.
1. Earnings
2. Pay
3. Paycheck
The construction worker is paid a fair _______ for each hour of labor.
1. Payroll
2. Earnings
3. Wage
As a marketing manager, Emily receives a fixed _______ every month, providing financial stability.
1. Pay
2. Salary
3. Paycheck

2. Answer

PREP hopes this article has helped you grasp the definitions, usages, and differences between Income, Pay, Paycheck, Payroll, Earnings, Wage, and Salary. Let’s follow PREP for more quality English knowledge updates!

Master Tu Pham

Founder/CEO at Prep

Founder of Prep Smart Test Preparation Platform. With over 10 years of experience in teaching and test preparation, Mr. Tú has helped thousands of students achieve high scores in the IELTS exam. In addition, Mr. Tú Phạm is also a consulting expert in British Council programs and a speaker at many leading educational events, programs, and conferences.