Differences between money wage and real wage:-
| Basis of difference | Money wage | Real wage |
| Meaning | Money wage is the wage received by labor in the form of money. | The real wage is the sum of goods and services that money wage can buy and extra benefits of labor occupation. |
| Forms of expression | It is expressed in terms of money. | It is expressed in terms of the purchasing power of money. |
| Extra facilities | It excludes extra facilities of labor’s occupation. | It includes extra facilities of labor's occupation. |
| Dimension | It is a narrow concept. | It is a broad concept. |
| Indicator of living standard | Money wage alone cannot indicate the economic position or living standard of labor. | Real wage determines the economic position or living standard of labor. |
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