Pay is the money paid to somebody for regular work (Oxford Dictionary, 1999: 857). Wage and salary also denote ‘the payment received for performing work (French, 1997:364) One thing should be made clear here that ‘wage’ and ‘salary’ have slightly different in their meanings.
Wage refers to an hourly rate of pay and is the pay basis used mostly for production and maintenance employees (blue-collar workers). – French (1997, 365).
Salary refers to a weekly, monthly or yearly rate of pay to clerical, professional, sales and management employees (white-collar workers). – French (1997, 365).
Compensation deals with every type of reward individuals receive in exchange for performing organizational tasks.-Ivancevich (2002).
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