Salaries, wages, and stipends are all forms of compensation for work. Salaries are a fixed amount of money paid to an employee on a regular basis, usually monthly or annually. Wages are typically paid by the hour and are based on the number of hours worked. Stipends are usually a fixed amount of money paid to someone for a specific purpose, such as a scholarship or fellowship. All three forms of compensation are important for employees to receive in order to maintain their livelihoods.