Compensation Glossary
Welcome to SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Equity-Based Insurance Product
A life policy or an annuity whereby the value and benefit fluctuate depending on the performance of the equity investments. Owners of this kind of insurance policy, in effect are accepting and or risking to sharing in the insurer's gains and losses.
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Midpoint Progression
Range Penetration
Benchmarking
FICA
Market Index
Total Rewards
Salary Structure Change
Minimum Wage
Lag the Market
Defined Benefit Plans
Mode
Works Council
Internal Equity
Median
Promotional Increase
Lead Pay Structure Policy
Range Spread
Benchmark Job
Percentile
Year of Service
Lead-Lag Pay Structure Policy
Geographic Differential
Long-Term Incentive Plan
Standard Error of Estimate
Lump Sum Merit
Compa-Ratio
Compensable Factors
Red Circle Rate
Sales Compensation
Market Based Salary Increase Budget
Job Family
Stock Option Incentive
Salary Grade
Turnover
Defined Contribution Plans
Consumer Price Index (CPI)
General Salary Increase
Mix
Step Rates
Pay Equity
Hours of Work
Range
Coefficient of Determination
Cost of Labor
Restricted Stock
Mean
Foreign Earned Income Exclusion
Annual Incentive
Aging Survey Data
Broadbanding
Merit Increase
Gender Pay Gap
Salary Range
Black-Scholes Model Z
Bonus
Pay Range Overlap
Individual Retirement Account (IRA)
Shift Differentials
Demotion
Standard Deviation
Quartile
Job Evaluation
Cost of Living
Green Circle Rate
Pay Grade
Linear Regression
Market Pricing
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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
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