Glossary
Salary, tax, and employment terms explained.
Tax
Salary
Benefits
Employment
Ancrage
Un biais cognitif et une tactique de négociation où le premier chiffre mentionné influence de manière disproportionnée le résultat final d'une négociation.
BATNA (meilleure alternative à un accord négocié)
Le résultat le plus favorable qu'un négociateur peut obtenir si la négociation en cours échoue, représentant le point de rupture et la principale source de pouvoir de négociation.
Benefits
Congé pour deuil
Un congé payé accordé aux salariés à la suite du décès d'un membre de la famille ou d'un proche, permettant de faire son deuil et d'organiser les funérailles.
Congés payés annuels
Le temps de vacances rémunéré auquel les salariés ont droit chaque année, les jours minimums étant souvent fixés par la loi dans la plupart des pays hors États-Unis.
Tax
Impôt cultuel
Un impôt collecté par l'État pour le compte d'institutions religieuses enregistrées en Allemagne, en Autriche, en Suisse et dans certains pays nordiques, calculé en pourcentage de l'impôt sur le revenu.
Impôt minimum alternatif
Un système fiscal parallèle américain conçu pour garantir que les contribuables à hauts revenus bénéficiant de certaines déductions et exonérations paient tout de même un montant minimum d'impôt.
Impôt sur les plus-values
Un impôt prélevé sur le profit réalisé lors de la vente d'un actif hors stock — comme des actions, un bien immobilier ou une participation dans une entreprise — qui a pris de la valeur.
Economics
Investing
Salary
Rappel de salaire
Des salaires dus à un employé pour un travail déjà effectué mais non encore rémunéré, résultant souvent d'erreurs de paie, d'un sous-paiement ou d'augmentations de salaire rétroactives.
Salaire annuel
La rémunération brute totale qu'un salarié perçoit sur une année complète, généralement exprimée sous forme d'un montant unique avant déductions.
Economics
Salary
Severance Pay
Compensation provided to an employee upon termination of employment, typically calculated based on length of service and often governed by statute or contract.
Retainer
A fixed, recurring fee paid to a professional or consultant to secure their availability and services over a specified period, regardless of the actual hours worked.
Stipend
A fixed, periodic payment made to interns, fellows, trainees, or clergy that is not considered a traditional salary and may be exempt from certain payroll taxes.
Per Diem
A daily allowance paid to employees to cover lodging, meals, and incidental expenses while traveling for work, often based on rates set by government agencies.
Equity Compensation
Non-cash pay that represents an ownership stake in the employer, including stock options, RSUs, restricted stock, ESPP shares, and profit interests.
Profit Sharing
A compensation arrangement in which employees receive a portion of the company's profits, distributed as cash bonuses or contributions to retirement accounts.
Variable Pay
Any compensation that fluctuates based on performance metrics, sales results, company profitability, or other non-fixed criteria.
Cost to Company
The total annual cost an employer bears for an employee, including gross salary, employer-paid taxes, social contributions, insurance, and benefits — commonly used in South Africa and India.
Take-Home Pay
The amount of money an employee receives after all deductions from their gross salary, synonymous with net salary or net pay.
Disposable Income
The amount of personal income remaining after direct taxes and mandatory social contributions have been paid, available for spending, saving, or investing.
Purchasing Power
The quantity of goods and services that can be bought with a unit of currency, reflecting the real value of money after accounting for price levels and inflation.
Salary Band
A defined range of pay levels (minimum, midpoint, maximum) for a specific job grade or role, used by organizations to structure and standardize compensation.
Tax
Income Tax
A government-imposed tax levied on individuals' or entities' earnings, including wages, salaries, investment income, and business profits.
Progressive Tax
A tax system where the tax rate increases as the taxable income increases, so higher earners pay a larger percentage of their income in tax.
Flat Tax
A tax system that applies the same rate to all levels of income without brackets or graduated rates, often paired with a basic exemption.
Sales Tax
A consumption tax imposed at the point of final sale to the consumer, collected by the retailer and remitted to the government.
Marginal Tax Rate
The tax rate applied to the last dollar (or unit of currency) of income earned, corresponding to the highest tax bracket into which an individual's income falls.
Effective Tax Rate
The actual percentage of total income paid in taxes, calculated by dividing total tax liability by total gross income.
Tax Bracket
A range of income taxed at a specific rate in a progressive tax system; each bracket has a lower threshold, an upper threshold, and an associated tax rate.
Withholding Tax
Tax deducted at source by an employer or payer from wages, dividends, or other income before the recipient receives the payment.
Tax Deduction
An expense or allowance that reduces taxable income, lowering the amount of income subject to tax rather than directly reducing the tax owed.
Tax Exemption
An amount or type of income that is completely excluded from taxation, either for the taxpayer or for specific categories of income.
Standard Deduction
A fixed amount that taxpayers can subtract from their gross income without needing to itemize individual expenses, simplifying the tax filing process.
Itemized Deduction
Individual deductible expenses that a taxpayer lists separately on their tax return, chosen instead of the standard deduction when the total exceeds the standard amount.
Double Taxation
The taxation of the same income by two or more jurisdictions, typically occurring when a person earns income in one country while being a tax resident of another.
Tax Credit
A direct, dollar-for-dollar reduction in tax liability, more valuable than a deduction of the same amount because it reduces tax owed rather than taxable income.
Corporate Tax
A tax levied on the net profits of corporations, separate from the personal income tax paid by shareholders on distributed dividends.
VAT (Value Added Tax)
A consumption tax levied at each stage of production and distribution, collected incrementally based on the value added at each stage.
Property Tax
A tax levied by local governments on real estate and, in some jurisdictions, personal property, based on the assessed value of the property.
Estate Tax
A tax on the net value of a deceased person's estate before distribution to heirs, applied when the estate exceeds a threshold amount.
Tax Return
A form filed with the tax authority reporting income, deductions, credits, and calculated tax liability for a specific period, typically one year.
Tax Refund
A reimbursement from the government when the total tax withheld or prepaid during the year exceeds the actual tax liability calculated on the annual return.
Tax Treaty
A bilateral agreement between two countries that establishes rules for taxing cross-border income, aimed at preventing double taxation and tax evasion.
Tax Residency
The jurisdiction in which a person is considered a resident for tax purposes, determining which country has the primary right to tax their worldwide income.
Filing Status
A classification used in the US tax system that determines the tax rate schedule, standard deduction amount, and eligibility for certain credits — such as Single, Married Filing Jointly, or Head of Household.
FICA (Federal Insurance Contributions Act)
A US federal payroll tax that funds Social Security and Medicare, split equally between employer and employee at a combined rate of 15.3% on earnings up to the wage base.
PAYE (Pay As You Earn)
A tax withholding system used primarily in the UK, Ireland, and several Commonwealth countries, where the employer deducts income tax from each paycheck before paying the employee.
Self-Employment Tax
A US tax that self-employed individuals pay to cover Social Security and Medicare contributions, equivalent to both the employee and employer shares of FICA at a combined rate of 15.3%.
NIC (National Insurance Contributions)
A UK payroll tax paid by employees and employers that funds the state pension, NHS, and other social security benefits.
Solidarity Surcharge
A supplementary tax levied in Germany (Solidaritätszuschlag) on top of income and corporate tax, originally introduced to fund reunification costs.
Tax-Free Allowance
An amount of income that is not subject to income tax, effectively creating a zero-rate band at the bottom of the tax scale.
Tax Year
The 12-month period used for calculating and reporting taxes, which may or may not align with the calendar year depending on the jurisdiction.
Fiscal Year
The 12-month accounting period used by governments and businesses for budgeting and financial reporting, which may differ from the calendar year.
W-2
A US tax form issued by employers showing an employee's annual wages, tax withholdings, and benefits deductions, used to file federal and state income tax returns.
Tax Haven
A jurisdiction that offers very low or zero tax rates and financial secrecy to attract foreign individuals and businesses seeking to minimize their tax obligations.
Transfer Pricing
The pricing of goods, services, or intellectual property exchanged between related entities within a multinational corporation, subject to the arm's-length principle.
Tax Avoidance
The legal use of tax laws, deductions, credits, and structures to minimize tax liability within the bounds of the law.
Tax Evasion
The illegal act of deliberately misrepresenting or concealing information to reduce tax liability, including hiding income, inflating deductions, or failing to file returns.
Benefits
Paid Time Off
A consolidated leave policy that combines vacation, sick days, and personal days into a single bank of days that employees can use for any reason.
Sick Leave
Paid or unpaid time off granted to employees who are ill, injured, or need medical attention, with entitlements varying widely by country and employer.
Maternity Leave
Paid or unpaid leave granted to mothers before and after childbirth, with duration and pay level set by statutory requirements that vary greatly by country.
Paternity Leave
Paid or unpaid leave granted to fathers or non-birthing partners around the birth or adoption of a child.
Parental Leave
Extended leave available to either parent (or both) for child-rearing after the initial maternity/paternity period, often partially paid through social insurance.
Sabbatical
An extended period of leave — typically weeks to months — offered to long-tenured employees for rest, personal development, travel, or research.
Health Insurance
Coverage that pays for medical, surgical, and sometimes dental and vision expenses, provided by employers, purchased individually, or funded by government programs.
Dental Insurance
Supplemental insurance that covers preventive, basic, and major dental care, typically offered as a separate benefit alongside medical insurance.
Vision Insurance
Supplemental insurance that covers eye exams, prescription eyeglasses, and contact lenses, typically offered separately from medical and dental plans.
Life Insurance
Insurance that pays a lump-sum death benefit to designated beneficiaries upon the death of the insured, commonly offered by employers as a basic group benefit.
Disability Insurance
Insurance that replaces a portion of income if an employee becomes unable to work due to illness or injury, available as short-term and long-term coverage.
IRA (Individual Retirement Account)
A US tax-advantaged personal retirement account that individuals can open independently of an employer, available in Traditional (pre-tax) and Roth (after-tax) versions.
Pension
A retirement plan that provides regular income payments after retirement, funded by employer contributions, employee contributions, or both, with benefits based on salary and years of service.
Superannuation
Australia's mandatory retirement savings system in which employers must contribute a percentage of an employee's salary (11.5% as of 2025) into a regulated retirement fund.
CPF (Central Provident Fund)
Singapore's mandatory social security savings scheme to which both employers and employees contribute, funding retirement, healthcare, and housing.
Social Security
A government program that provides retirement, disability, and survivor benefits funded through payroll taxes, with the US system (OASDI) being the most well-known example.
Medicare
A US federal health insurance program primarily for people aged 65 and older, funded through payroll taxes (1.45% employee + 1.45% employer) with no earnings cap.
Unemployment Insurance
A government-administered program that provides temporary income replacement to workers who lose their jobs through no fault of their own.
Workers' Compensation
A mandatory employer-funded insurance program that provides medical care and wage replacement to employees injured or made ill in the course of their employment.
Flexible Spending Account
A US tax-advantaged account that allows employees to set aside pre-tax dollars for eligible medical or dependent-care expenses, subject to annual limits and use-it-or-lose-it rules.
Health Savings Account
A US tax-advantaged savings account available to individuals enrolled in a High Deductible Health Plan, offering triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses.
Employee Assistance Program
A confidential employer-sponsored program providing free short-term counseling and referral services for personal or work-related issues such as mental health, substance abuse, and financial stress.
Tuition Reimbursement
An employer benefit that pays for part or all of an employee's education expenses, including tuition, books, and fees, often in exchange for a service commitment.
Remote Work Benefit
An employer-provided stipend or reimbursement to help employees set up and maintain a productive home office, covering equipment, internet, and workspace expenses.
Stock Purchase Plan
An employer-sponsored program (ESPP) that allows employees to purchase company stock at a discount — typically 15% below market price — through payroll deductions.
Economics
Median Salary
The middle value in a sorted list of salaries, where half of workers earn more and half earn less — a more representative measure than the average when high earners skew the data.
Salary Range
The spread between the minimum and maximum pay offered for a particular job, typically expressed as a low-high range in job postings or compensation structures.
Wage Compression
A situation where the pay difference between experienced and new employees narrows, often because starting salaries rise with the market while tenured employees' pay stagnates.
Salary Percentile
A measure indicating the percentage of salaries in a distribution that fall at or below a given value, used to understand where a specific salary ranks relative to peers.
Cost of Living
The amount of money needed to cover basic expenses — housing, food, transportation, healthcare, and taxes — in a particular location.
Cost of Living Index
A numerical indicator that compares the relative cost of living between locations, with a baseline (often 100 for the national average or a reference city) against which other areas are measured.
Purchasing Power Parity (PPP)
An economic theory and exchange-rate adjustment that equalizes the purchasing power of different currencies by accounting for the relative cost of a representative basket of goods.
GDP per Capita
A country's total economic output (Gross Domestic Product) divided by its population, used as a broad indicator of average economic well-being and productivity.
Gini Coefficient
A statistical measure of income or wealth inequality within a population, ranging from 0 (perfect equality) to 1 (maximum inequality).
Unemployment Rate
The percentage of the labor force that is actively seeking employment but unable to find work, a key economic indicator of labor market health.
Labor Force Participation Rate
The percentage of the working-age population that is either employed or actively seeking employment, providing a broader view of labor market engagement than the unemployment rate alone.
Minimum Wage
The lowest hourly, daily, or monthly rate that employers are legally required to pay workers, set by government statute or collective agreement.
Living Wage
The income level necessary for a worker to meet basic needs — food, housing, transportation, healthcare — without government assistance, typically higher than the legal minimum wage.
Wage Growth
The percentage change in average wages over a period, measured either in nominal terms (current dollars) or real terms (adjusted for inflation).
Inflation
The rate at which the general level of prices for goods and services rises over time, eroding the purchasing power of money and reducing the real value of wages.
Salary Benchmarking
The process of comparing an organization's pay levels to external market data from salary surveys to ensure compensation is competitive for attracting and retaining talent.
Real Wage
The purchasing power of wages after adjusting for inflation, showing whether workers can actually buy more goods and services over time.
Nominal Wage
The face-value amount of wages paid in current dollars without any adjustment for inflation or changes in the price level.
Gender Pay Gap
The difference in average or median earnings between women and men, expressed as a percentage of men's earnings, reflecting both direct pay disparities and structural factors.
Geographic Pay Differential
The variation in pay for the same role based on geographic location, reflecting differences in cost of living, local labor market supply and demand, and regional economic conditions.
Expatriate Premium
Additional compensation paid to employees who relocate internationally, covering the extra costs and disruptions of living and working abroad.
Hardship Allowance
A pay supplement provided to employees assigned to locations with difficult living conditions, such as remote areas, conflict zones, or countries with limited infrastructure.
Employment
Salary Negotiation
The process of discussing and reaching agreement on compensation between an employer and a current or prospective employee, typically at the time of hiring, promotion, or annual review.
Counter Offer
A response to an initial job offer or resignation in which the receiving party proposes different terms — typically higher pay, a better title, or additional benefits.
ZOPA (Zone of Possible Agreement)
The range between the employer's maximum budget and the candidate's minimum acceptable salary, within which a mutually beneficial agreement can be reached.
Salary Expectation
The compensation range a job candidate is willing to accept for a position, often requested by employers during the application or interview process.
Compensation Package
The complete set of pay and benefits an employer offers to an employee, encompassing base salary, variable pay, equity, insurance, retirement contributions, and perks.
Non-Compete Clause
A contractual provision that restricts an employee from working for a competing business or starting a competing venture for a specified period and geographic area after leaving the employer.
Non-Disclosure Agreement
A legal contract that prohibits an employee or party from sharing confidential information — such as trade secrets, client lists, or proprietary technology — with outside parties.
Offer Letter
A formal document from an employer specifying the terms of employment — including position, salary, benefits, start date, and conditions — provided to a selected candidate.
Employment Contract
A legally binding agreement between employer and employee that sets out the terms of employment, including duties, compensation, working hours, termination conditions, and restrictive covenants.
Probation Period
An initial trial period at the start of employment during which either party can end the relationship with shorter notice and fewer procedural requirements than normal.
Notice Period
The length of time an employee or employer must give before terminating the employment relationship, typically specified in the employment contract or mandated by law.
Garden Leave
A period during which a departing employee remains on the payroll and is bound by their employment terms but is not required to work, preventing immediate access to a competitor's operations.
Restrictive Covenant
A contractual clause that limits an employee's activities after leaving a company, including non-compete, non-solicitation, non-dealing, and non-disclosure provisions.
Investing
Employment
Relocation Package
A set of benefits and payments provided by an employer to help a new or transferring employee move to a different city or country for work.
Golden Parachute
A substantial compensation package guaranteed to a senior executive if they are terminated — especially during a merger, acquisition, or change of control.
Clawback
A contractual provision that requires employees to return previously paid compensation under certain conditions, such as leaving early, misconduct, or financial restatements.
Retention Bonus
A financial incentive paid to key employees to encourage them to remain with the company during critical periods such as mergers, restructurings, or project completions.
Investing
Dollar Cost Averaging
An investment strategy of regularly investing a fixed amount regardless of market conditions, reducing the impact of volatility on the overall purchase price.
Backdoor Roth Conversion
A strategy allowing high-income earners to contribute to a Roth IRA by first making a non-deductible Traditional IRA contribution and then converting it to Roth.
Employee Stock Purchase Plan (ESPP)
A company-run benefit program that allows employees to purchase company stock at a discount, typically 10-15% below market price, through payroll deductions.
Vesting Schedule
A timeline that determines when an employee gains full ownership of employer-provided benefits such as stock options, RSUs, or retirement contributions.
Stock Option
A contract giving an employee the right to buy company shares at a predetermined price (strike price) within a specified period, potentially profiting if the stock price rises.
Section 83(b) Election
A US tax election that allows employees to pay income tax on the fair market value of restricted stock at the time of grant rather than at vesting, potentially saving significant taxes if the stock appreciates.
Salary
Investing
Provident Fund
A mandatory government-managed savings scheme, common in Asian countries, where both employers and employees contribute a fixed percentage of salary toward retirement.
Tax-Loss Harvesting
An investment strategy of selling securities at a loss to offset capital gains taxes, commonly used by employees with significant equity compensation.
Employer Match
A contribution made by an employer to an employee's retirement plan that matches a portion of the employee's own contributions, effectively providing free money for retirement savings.
Deferred Compensation
An arrangement in which a portion of an employee's income is paid out at a later date, typically retirement, allowing the employee to defer taxes on that income.
Required Minimum Distribution (RMD)
The minimum amount that US retirement account holders must withdraw annually from tax-deferred accounts starting at age 73, calculated based on account balance and life expectancy.
Salary
Net Salary
The amount of money an employee actually receives after all deductions — taxes, social security, insurance, and retirement contributions — have been subtracted from gross salary.
Base Salary
The fixed, regular amount of compensation an employee receives, excluding bonuses, overtime, benefits, and any other variable pay components.
Total Compensation
The complete value of everything an employer provides to an employee, including base salary, bonuses, equity, benefits, retirement contributions, and perks.
On-Target Earnings
The total expected annual compensation when an employee meets 100% of their performance targets, combining base salary with target variable pay.
Monthly Salary
The gross amount an employee earns each calendar month, calculated by dividing the annual salary by 12 (or the number of pay periods in countries with 13th/14th month pay).
Hourly Rate
The amount an employee earns for each hour of work, commonly used for non-exempt workers, freelancers, and part-time employees.
Overtime Pay
Additional compensation paid to employees for hours worked beyond the standard workweek, typically calculated at 1.5× to 2× the regular hourly rate.
Bonus
A supplemental payment awarded to an employee on top of their base salary, often tied to individual performance, company profits, or a specific event like signing.
Commission
A form of variable compensation paid to employees — usually in sales roles — as a percentage of the revenue or profit they generate.
Stock Options
A form of equity compensation that gives employees the right to purchase company shares at a predetermined price (the strike price) after a vesting period.
RSU (Restricted Stock Units)
A promise by an employer to grant shares of company stock to an employee once specific vesting conditions — typically time-based — are met.
ESOP (Employee Stock Ownership Plan)
A qualified retirement plan in which employees receive shares of company stock, often used to align employee interests with company performance or facilitate ownership transitions.
Signing Bonus
A one-time lump-sum payment offered to a new hire as an incentive to accept a job offer, often used to compensate for forfeited benefits at a previous employer.
Performance Bonus
A variable payment awarded to an employee based on meeting or exceeding predefined performance targets, such as individual KPIs, team goals, or company financial results.