Words / C / Business

compensating differential

noun/ˈkɒmpenseɪtɪŋ ˌdɪfəˈrenʃəl/

C2CEFR level
88/100Rarity: very rare
TechnicalRegister

The extra pay required to persuade workers to accept less pleasant or riskier jobs.

The compensating differential for permanent night shifts added fifteen percent to the base rate.

Similar: wage premium

Topic: Economics in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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