Difference between Salary and Income | Salary vs Income

Doesn’t it feel good to receive your salary at the end of the month? Wouldn’t it be great if your income is increased? Are the two terms used in the sentences mean the same, or do they have different meanings? If you ask this question to someone, most would say ‘salary’ and ‘income’ are related to money. So, to make sure that one doesn’t get confused while using these terms, the article will walk you through the difference between salary and income.

There are many pairs of words in the English Language that often seem to confuse people. And most of the time, students get confused between such terms as they don’t know the exact meanings. This article on the difference between ‘income’ and ‘salary’ will ensure people don’t get confused using them and that they are able to use them in the proper contexts. Let us look at the following topics, which will clear all your doubts.

Table Summarising the Difference between Salary and Income

Income Salary
Meaning Income refers to the remuneration a person gets from any source in the form of cash, dividends, shares, profits etc. Salary refers to the money/cash an employee receives from their employer in return for their services.
Usage It’s used as a noun. It’s used as a noun and verb.
Example Sam’s income is more than that of Raj’s. Sheldon’s salary got credited today.

This table shows that though ‘income’ and ‘salary’ are related to money, they aren’t identical and can’t be used synonymously. Students often get confused between these words, but they must understand the contexts they are using them in. Only then, can they use these terms correctly.

Difference between Salary and Income – Meanings

‘Income’ and ‘salary’ are terms that simply denote the flow of money but aren’t synonymous and can’t be used interchangeably, for example, ‘Penny gets a salary from working at the bakery, but she made an income by selling her old laptop.’ Here, as you can understand, ‘salary’ is a cash inflow the employee gets from their employer for rendering their services, but one can have their ‘income’ from many other sources; in the example, Penny sold her old laptop and made an income. The salary one receives from their employer is also a type of income, but not all types of income are salaries. Income includes profits, dividends, shares, salaries, investments etc. Once students understand the difference between salary and income, it will be easy to implement them correctly in sentences of their own.

Examples of Salary and Income

The following examples will help students better understand the terms ‘income’ and ‘salary’:

Income – Amy’s income increased due to her company’s profits this year.

Salary – Stuart gets a much lower salary than he deserves.

Salary and Income – Conclusion

To sum up, ‘income’ and ‘salary’, though refer to the flow of funds, are not synonymous and can’t be used interchangeably. When one is using these words, one has to understand the context or will end up misusing them. This article talks about the essential points that help one understand how to use these two terms. BYJU’S offers various articles on many ‘Difference Between’ two words that people often get confused with.


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