Area Differential

Area Differential

An allowance paid to compensate expatriate employees for cultural and hardship factors present in their country of assignment as compared to their base country (this is also known as a hardship allowance). Also, an allowance paid to domestic employees in some geographic areas, which is based on different average pay levels or cost of living.

POPULAR BLOGS

ERI's 2026 Benefits Benchmarking Survey Highlights

United States and Canada Minimum Wage Updates - June 2026

Do Geographic Pay Differentials Account for Inflation?

View All Blogs

Explore Compensation Solutions

Pay Equity

Salary Survey Management

Shift Differentials

View All Solutions

WHITE PAPERS

Top Performing White Papers

National Compensation Forecast April 2026

Compensation Strategies for Remote Work and Organizational Culture – Fall 2025

Planning Global Compensation Budgets for 2026 - January 2026

View All White Papers

Featured White Paper

Common Compensation Terms and Formulas - January 2026

Includes the latest updates: Compensable factors, defined benefit plan, job leveling, lead differential, shift differential and more.
Salary structure formulas and strategies

Download Now

Compensation Glossary

POPULAR BLOGS

POPULAR BLOGS

Explore Compensation Solutions

Top Performing White Papers

Popular Searches

Featured White Paper

Learn More About ERI’s Assessor Platform

View Our Latest White Paper

National Compensation Forecast April 2026

ERI has been focused on researching compensation for over 35 years

Compensation Glossary