Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Third Party Insurance
An insurance policy purchased for protection against the actions of another party. Third Party Insurance is purchased by the insured (who is the first party) from an insurance company (the second party) for protection against another party's (the third party) claims.
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Minimum Wage
Shift Differentials
Defined Contribution Plans
Compensable Factors
Benchmark Job
Salary Range
Defined Benefit Plans
Sales Compensation
Consumer Price Index (CPI)
Pay Equity
Bonus
Year of Service
Geographic Differential
Job Evaluation
Green Circle Rate
Market Pricing
Red Circle Rate
Cost of Living
Aging Survey Data
Foreign Earned Income Exclusion
Demotion
Long-Term Incentive Plan
Market Based Salary Increase Budget
Pay Range Overlap
Internal Equity
Annual Incentive
Range Penetration
Mode
Gender Pay Gap
Benchmarking
Linear Regression
Mix
FICA
Restricted Stock
Job Family
General Salary Increase
Hours of Work
Standard Error of Estimate
Range
Standard Deviation
Lump Sum Merit
Percentile
Midpoint Progression
Turnover
Range Spread
Compa-Ratio
Salary Grade
Broadbanding
Median
Salary Structure Change
Market Index
Coefficient of Determination
Merit Increase
Step Rates
Cost of Labor
Works Council
Lead Pay Structure Policy
Pay Grade
Total Rewards
Black-Scholes Model Z
Lead-Lag Pay Structure Policy
Quartile
Lag the Market
Stock Option Incentive
Individual Retirement Account (IRA)
Mean
Promotional Increase
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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