nominal wage

nominal wage definition - business

nominal wage

The wage of an individual or group without accounting for changes in consumer prices. For example, the statement that employees received a 50¢ raise to $11.50 per hour is in nominal terms, and does not indicate if the raise resulted in an increase in purchasing power.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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