Geographic Differential

What is Geographic Differential?

 

‘Geographic Differential’ refers to the differences in the compensation package for the same job in different locations based on the differences in the cost of living at those locations.

 

It is usually provided as a supplement to the primary salary in order to compensate for the additional cost of living in a place where the cost of living is more.

 

This kind of additional compensation makes the employee feel valued and increases their engagement with the company. As engaged employees are always an asset for the company, it is in the best interest of the company to provide additional geographic differential.

More HR Terms

Workplace Health Surveillance

What is Workplace Health Surveillance ? ‘Workplace Health Surveillance’ is the practice of finding out the factors that lead to injuries and diseases in the

Gender Pay Gap

What is Gender Pay Gap ? ‘Gender Pay Gap’ refers to the difference that has been existing in the compensation packages provided to males and

Contact Us

Contact Us