Wage-to-salary transition refers to the conversion of an employee's compensation structure from an hourly or daily wage-based system to a fixed monthly or annual salary-based system. This transition often occurs as employees progress in their roles or when organizations seek to provide greater financial stability.

Example
An employee who was initially paid an hourly wage of $15 may undergo a wage-to-salary transition, where they are offered an annual salary of $40,000 for the same position, providing financial predictability.