What is a Day Wage?

A day wage is an fixed amount of income given on a daily basis, that is not usually based on performance or accomplished duties. Day wages are distinct from a salary as they are dependent entirely upon how many days or shifts were completed by the worker, as opposed to an agreed upon contract based on work accomplished. Day wages may be divided into hourly wages based on shift length; for instance, a worker paid a daily rate of $80 US Dollars (USD) for a ten hour work shift could also be said to make an hourly wage of $8 USD.

Often, day wages are offered to workers who do not qualify for salaried positions. Seasonal jobs, such as harvesting work in agricultural areas, is a typical job model for a day wage. Entry-level jobs and part-time positions may also offer a day or hourly wage instead of a salary, as these are often seen as transitional. While these jobs may be important, they do not require the long-term commitment of a salaried job from either the employer or the worker.

Most countries have rules and regulatory guidelines regarding day wages for different jobs. Many countries, including the United States, most of Europe, and Asia, insist on a country-wide minimum wage to ensure that workers are being paid reasonably for work. Setting a minimum wage is considered by many experts to be vital to human rights and the prevention of slave labor. However, having a minimum day wage does not always mean that the laws are enforced; sweatshops, indentured labor, and even slave labor continue to be major problem in the world market, particularly in countries suffering from extreme poverty.

In many countries, fair day wages are set through the negotiation of labor unions with employers. These contracts are meant to ensure that day wage earners do not suffer due to the lack of permanence or salaried contract with an employer. Most union contracts regarding day wages include considerations for overtime pay rates; since a day wage is based on a set number of hours, extra hours requested by employers often include increased pay rates. A day wage is often subject to government and local taxes, although the scarcity of records on short term or day-laboring workers can make these taxes near impossible to impose.

A day wage can be an excellent solution for jobs that must be completed within a specific period of time. Construction, farming, and holiday season retail jobs are often available for a day wage. However, since the wage is based on time rather than effort, day wages do not necessarily provide workers with good reasons to work diligently. Salaried positions typically require specific progress from a worker, while commission-based employment awards additional income for superior performance. Without incentive to produce at maximum ability, motivating workers on a day wage may be difficult for managers and employers.