What is typically referred to as pay by the hour?

The term that is typically referred to as pay by the hour is wage. Wages are usually calculated based on the number of hours worked, allowing an employee to earn a set amount for each hour they are on the job. This system is commonly used for hourly workers and reflects the direct exchange of time for compensation.

In contrast, salary refers to a fixed amount of pay typically delivered annually, regardless of the hours worked, while commission relates to earnings based on sales performance or the completion of specific targets. A bonus is an additional form of compensation awarded for exceptional performance, achievements, or as an incentive, but it does not constitute hourly pay. Thus, wage efficiently describes compensation directly linked to hourly labor.