Difference Between Wage and Income
Wage vs income
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Wage is the payment that one gets for his work. Income is the overall money that one gets. Wage is part of income and everyone knows what makes the difference.
Wage is the money that is paid either monthly, weekly, tri-weekly, daily or as per the hour. The wage is fixed for each work and it may increase in time. Income is the money calculated from all the known sources that could include the wages, gifts, interest, bonuses and dividends. Unlike wages, income cannot be fixed as it depends on the varying sources; an income one gets for a particular year could be different from another year.
Wage is got only if a person works. On the other hand, a person can have income even if he works or not. A person could get income from dividends or as gift money that one gets during birthday or wedding or from the interest.
Wage is one that gets for his labour, whereas income is got even without any labour. Wages are not always taxed, but they are taxed when it becomes part of the income. In wages, there is no gain but only an exchange of labour. But in the case of income, there is gain even without any exchange. Â
The word, wage has been derived from Old French, ‘wagier’ or  ‘gagier’ that means promise or pledge. Income has come from Old English verb, ‘incuman’, which means money got from business or labour.
Summary
- Wage is part of income.
- Wage is the payment that one gets for his work. Income is the overall money that one gets.
- Wage is the money that is paid either monthly, weekly, tri-weekly, daily or as per the hour. Income is the money calculated from all the known sources that could include the wages, gifts, interest, bonuses and dividends.
- The wage is fixed for each work and it may increase in time. income cannot be fixed as it depends on the varying sources; an income one gets for a particular year could be different from another year.
- Wage is got only if a person works. On the other hand, a person can have income even if he works or not.
- Wage is one that gets for his labour, whereas income is got even without any labour.
- In wages, there is no gain but only an exchange of labour. But in the case of income, there is gain even without any exchange. Â
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The supreme court has define income as gains from capital, from labor, or from both. Gains from labor refers to the difference between a business’s labor expense and the amount the business charges for a product or service. Wages are not a gain, but rather a compensation for your services. If there was a standard dollar amount assigned to every kind of work, then only moneys received in excess of the amount assigned for said work would be a gain. For all wages to be considered income, a person’s labor would have to be valued at zero ($0.00).