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This question is about salaries.
What is differential pay?
Differential pay is special additional pay employers offer employees to acknowledge unique competencies, unusual circumstances or specific working conditions.
It is often utilized as an incentive to get an employee to take on certain assignments or tasks. Sometimes, these assignments and tasks involve working under hazardous conditions.
Differential pay is sometimes also used to motivate employees to take jobs in areas with a higher cost of living.
It is also used as an incentive to get employees to take on more shifts, such as ones involving a second or third shift, resulting in shift premiums.
In summation, here are the four most common instances differential pay is used:
Employees that have unique and exceptional abilities in niche areas
Employees working in hazardous conditions
Geographic differentials, in which the cost of living is higher in the area an employee is going to work
Shift premiums as an incentive to get an employee to take on more shifts.
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