Compensation can be paid in the form of an hourly wage, a commission, a salary and also such things as clothing allowance, car allowance, living allowance, health insurance, day care benefits, a cafeteria plan which usually encompasses the items mentioned but there is a choice as to what the persons needs may be, there are also salary with bonus given performance, overtime allowed and overtime rates. The list goes on and is primarily a function of the job and its requirements. A hourly rate of pay is usually associated with a set work week with overtime paid for any additional hours worked. A salary is sometime considered to be a rate of pay without consideration for extra hours or time spent on the job by the employee and is usually considered to be paid to a management or officer of the business such as a VP or President. Such things as travel allowance is also a consideration as well as a company vehicle. So is a base salary with commission for a sales person or a performance based bonus structure based on the results of a persons performance. Depending on your job and it's requirements a mixture of the above and the field of employment usually dictate what is offered as is your relative experience and past employment history.
