### Quick Answer

**Even though the terms are sometimes used interchangeably, wages usually refer to hourly pay, whereas salaries refer to annual pay.** Wages are calculated by counting the number of hours worked and multiplying it by an hourly rate, while salaries are calculated annually and divided by the number of payments received.

### Full Answer

For example, to calculate the monthly wage of a person who earns $8.25 an hour and works 6 hours a day, 5 days a week, their wage is calculated $8.25 x 6 x 5. If the same person earns $35,000 a year and is paid semi-monthly, their salary is calculated by dividing $35,000 by 24.