differential

/ˌdɪfəˈrenʃəl/ noun [C]

Definition

› HR a difference in pay between different industries or between groups of employees within an organization: a pay/wage/salary differential maintain/reduce/justify a differential In order to maintain differentials we propose a 3% increase for all pay grades.

› ECONOMICS, COMMERCE a difference in an amount, for example, a difference in price between the same product sold in different areas: a price/cost differential The company is free to maintain the price differential between a low price market such as the USA and a high price market such as the UK. When the interest rate differential between the euro and other currencies changes, foreign exchange dealers react.

› STOCK MARKET an extra charge added to the price of shares when they are sold in a quantity that is less than the usual quantity: The differential for odd lots (fewer than 100 shares) is added to the price for the purchaser.

(Definition of differential noun from the Cambridge Business English Dictionary © Cambridge University Press)