Wage Premium

/ˈweɪdʒ ˈpriːmiəm/

Definitions

  1. (n.) An additional amount of compensation paid to an employee above the standard wage, typically reflecting higher skill, experience, or job risk.
    The wage premium for skilled workers incentivizes specialized training.

Forms

  • wage premium
  • wage premiums

Commentary

Often arises in employment contracts and labor negotiations to justify pay differentials based on qualifications or conditions.

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

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