guaranteed annual wage: meaning, definition, pronunciation and examples

No. A salary is a fixed regular payment, typically expressed as an annual sum but paid monthly. A guaranteed annual wage is specifically a minimum income guarantee, often for hourly workers, protecting them against reduced hours or temporary layoffs.

Historically, manufacturing, especially the automobile industry in the United States during the mid-20th century. It can also be found in some unionised sectors like steel and certain public services.

Not exactly. It typically guarantees a minimum number of paid hours or a minimum income over a year. If work is unavailable, the employer still pays the guaranteed minimum, but it is a contractual right, not payment for idleness.

Unemployment benefits are government-provided social insurance paid when someone loses their job. A guaranteed annual wage is a contractual obligation from the employer to the current employee, ensuring income while still formally employed, even during slow periods.

An employment system in which a worker is guaranteed a minimum yearly income, regardless of fluctuations in work hours or economic conditions.

Guaranteed annual wage is usually formal, technical in register.

Guaranteed annual wage: in British English it is pronounced /ˌɡær.ənˈtiːd ˈæn.ju.əl weɪdʒ/, and in American English it is pronounced /ˌɡer.ənˈtiːd ˈæn.ju.əl weɪdʒ/. Tap the audio buttons above to hear it.