Division of Labor and Industry


What is a "Wage"? - The Maryland Guide to Wage Payment and Employment Standards


A wage is payment or compensation earned by an employee for work performed under an employer's direction, or with the employer's knowledge or consent. Generally, wages are paid as currency (U.S. Dollars) representing a length of time worked, but may also include the following:

  1. Bonus. This could include a monetary reward for finishing a special project or completing a length of employment.
  2. Commission. This is usually a portion of the sale price of some commodity or service which the employee has sold on behalf of the employer, or some promised amount of money as a reward for making the sale.
  3. Fringe Benefit. This could be many things, but often involves some accrued or accumulated compensation such as vacation ("annual") leave, sick leave, or other promised benefit.
  4. Overtime
  5. Any Other "Remuneration" (compensation) promised for work performed. Examples could include room and board, materials and inventory, etc.