Difference between Salary and Income | Salary vs Income

Doesn’t it feel good when you receive your salary at the end of the month? Or wouldn’t it be great if your income increases? Now the two terms used in the sentence are the same or have different meanings? If you ask someone this question, most of them would say ‘salary’ and ‘income’ both 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 points of difference between salary and income.

There are many words present 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 meaning clearly. So this article on the difference between ‘income’ and ‘salary’ will make sure people don’t get confused while using them and use them in the proper context. Let us look at the following topics, which will clear all your doubts.

Table Summarising the Difference between Salary and Income




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 that an employee receives from their employer in return for the services they provide.


It’s used as a noun

It’s used as a noun and verb


Sam’s income is more than Raj.

Sheldon’s salary got credited today.

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

The Difference between Salary and Income – Meaning

‘Income’ and ‘salary’ are terms that simply denote the flow of money but aren’t synonymous or 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 that the employee gets from their employer for rendering their services. But one can have their ‘income’ from a lot of other sources; in the example, Penny sold her old laptop and made an income. The salary one receives from their employer is a type of income, but not all types of income are a salary. Income includes profits, dividends, shares, salaries, investments etc. Once students get to understand the difference between salary and income, it will be easy for them to implement them correctly.

Example of Salary and Income

The following example will help students to better understand the terms ‘income’ and ‘salary’.

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

Salary – Stuart gets a much lower salary than his qualifications.

Once students understand the meaning of the words ‘income’ and ‘salary’, they can quickly form examples on their own.

Salary and Income – Conclusion

To sum up, ‘income’ and ‘salary’ though refer to the flow of funds but 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 to know how to use these two terms. BYJU’S offers various articles on many such ‘differences between two words’ that people often get confused with.

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