The term real wages refers to wages that have been adjusted for inflation. This term is used in contrast to nominal wages or unadjusted wages. Real wages provide a clearer representation of an individual's wages.

The use of adjusted figures is used in undertaking some forms of economic analysis. For example, to report on the relative economic successes of two nations, real wage figures are much more useful than nominal figures are.

If nominal figures are used in an analysis, then statements may be incorrect. A report could state: 'Country A is becoming wealthier each year than Country B because its wage levels are rising by an average of $500 compared to $250 in Country B'. However, the conclusion that this statement draws could be false if the values used are not adjusted for inflation.

An inflation rate of 100% in Country A will result in its citizens becoming rapidly poorer than those of Country B where inflation is only 2%. Taking inflation into account, the conclusion is quite different: 'Despite nominal wages in Country A rising faster than those in Country B, real wages are falling significantly as the currency halves in value each year'.

Real may also refer to:

Currencies:

Former currencies:

See also:

Wesley Maynor

Real (Spanish pronunciation: [reˈal]), translated from Spanish as "royal", is a title historically used by sports clubs to designate a royal status.

Other football (soccer) teams:

A wage is a compensation, usually financial, received by workers in exchange for their labor.

Compensation in terms of wages is given to workers and compensation in terms of salary is given to employees. Compensation is a monetary benefit given to employees in return for the services provided by them.

Depending on the structure and traditions of different economies around the world, wage rates are either the product of market forces (supply and demand), as is common in the United States, or wage rates may be influenced by other factors such as tradition, social structure and seniority, as in Japan.

In the United States, wages for most workers are set by market forces, or else by collective bargaining, where a labor union negotiates on the workers' behalf. The Fair Labor Standards Act establishes a minimum wage at the federal level that all states must abide by, among other provisions. Fourteen states and a number of cities have set their own minimum wage rates that are higher than the federal level. For certain federal or state government contacts, employers must pay the so-called prevailing wage as determined according to the Davis-Bacon Act or its state equivalent. Activists have undertaken to promote the idea of a living wage rate which account for living expenses and other basic necessities, setting the living wage rate much higher than current minimum wage laws require.