What is Geographical Differential?

Whether you're a beginner or an expert, you will find this Glossary useful.

Geographical differentials refers to difference in pay for similar jobs that are based on different geographical locations. 

what-is-geographical-differential

Geographical differentials definition

Geographical differentials refers to difference in pay for similar jobs that are based on different geographical locations. The geographic definitions used are mainly cities, states, broad region or territory, country etc.

Large expensive cities like London often include a percentage of the basic salary as a supplement to cover the increased costs of living in that city.

Three common methods used to implement geographic differentials:

• Different salary structures in different locations

• Individual adjustments to base salaries

• Supplemental geographic differential payments

Factors used to calculate the geographic differentials are local cost of living, inflation, unemployment or employment data etc.


Free Glossary of Human Resource Terms

Improve your HR vocabulary by learning the most important HR terms & Definitions

Download Now

2018 Guide for Buying a Recruiting Tool

Download this guide with useful advices for buying a recruiting software tool that will help you improve your hiring efforts.

Get the Guide
TalentLyft ATS

Your Hiring Teammate

TalentLyft is intuitive and simple recruitment software specialized for SMBs.
Try it free for 14 days!
No credit card required, unsubscribe at any time.