SmartHCM

What are Geographic Pay Differentials?

What are geographic pay differentials?

Geographic pay differential refers to pay at a different rate for similar jobs based on the location. Geographic location, in this instance, refers to cities, states, countries, territories, etc. The premise of geographic pay differential is based on the cost of living, market rates, and various other factors. For example, living in a large city like New York will be different from living in a smaller city where living costs are lower.