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English definition of “differential”

differential

noun [C]
 
 
/ˌdɪfəˈrenʃəl/
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)
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