Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
401(k)
A defined contribution retirement plan that lets employees invest a portion of their paycheck before taxes are taken out. The contributions go into a 401(k) account where the savings grow tax free until retirement, at which point the withdrawals are taxed as income. In some plans, the employer also makes contributions such as matching the employee’s contributions up to a certain percentage.
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Market Index
Aging Survey Data
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Market Based Salary Increase Budget
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Promotional Increase
Cost of Labor
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Pay Equity
Midpoint Progression
Mean
FICA
Quartile
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Mix
Benchmark Job
Range Spread
Black-Scholes Model Z
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Lag the Market
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Range
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ERI SalaryExpert was launched in 2000 by ERI Economic Research Institute to help organizations and individuals optimize salary planning. Our robust compensation management solution houses the global salary survey data and applications needed to design competitive and effective compensation structures. From benchmarking with reliable market data to analyzing geographic differentials and conducting pay equity analyses, our intelligent platform is an innovative way of merging integral salary survey data with efficient features, all in one system.
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Featured White Paper
Common Compensation Terms and Formulas - January 2026
Find commonly used compensation terms and formulas for your reference when planning compensation.
Ready to Streamline Your Compensation Strategy with Us?
Discover how our Assessor Platform can help you attract top talent, stay on top of market trends, and set your organization up for success, all in one platform.
Try a Free Demo
About Us
ERI SalaryExpert was launched in 2000 by ERI Economic Research Institute to help organizations and individuals optimize salary planning. Our robust compensation management solution houses the global salary survey data and applications needed to design competitive and effective compensation structures. From benchmarking with reliable market data to analyzing geographic differentials and conducting pay equity analyses, our intelligent platform is an innovative way of merging integral salary survey data with efficient features, all in one system.
Learn More