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An employer is a person or institution that hires employees. Employers pay wages or a salary to the workers in exchange for the worker's work or labor.
If the employee is paid by the hour, then the money the employee earns is called their wage. If the employee is paid a set rate for a month, then the money they earn is called their salary. Wages are paid for all hours worked, including overtime. People with a salary are typically not paid more for more hours worked than the minimum. Some people are paid piece work - a sum of money for each bit of work.
Employers include everything from people hiring a babysitter to governments and businesses which may hire many thousands of employees. In most western societies governments are the largest single employers, but most of the work force is employed in small and medium businesses in the private sector.