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Jobs and Working Life - Compensation

Study terms related to salaries, wages, bonuses, commissions, insurance benefits, severance pay, retirement plans, pensions, and pay equality.

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Words Related to Jobs and Working Life
salary
salary
[noun]

an amount of money we receive for doing our job, usually monthly

Ex: Employees receive their salary at the end of the month. 
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wage
wage
[noun]

money that a person earns, daily or weekly, in exchange for their work

Ex: The company increased the minimum wage for its employees to attract and retain talent. 
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pension
pension
[noun]

a regular payment made to a retired person by the government or a former employer

Ex: My grandfather's pension allows him to travel during his retirement. 
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raise
raise
[noun]

an amount of money added to our regular payment for the job we do

Ex: A raise is expected after the annual review. 
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bonus
bonus
[noun]

the extra money that we get, besides our salary, as a reward

Ex: Our bonus is calculated based on our performance ratings. 
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unpaid
unpaid
[Adjective]

not yet given the money that was promised in exchange for something

Ex: She worked for several months at an unpaid internship before landing a full-time job. 
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commission

a sum of money paid to someone based on the value or quantity of goods they sell

Ex: The salesperson earns a 10% commission on every sale. 
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hazard pay

additional compensation for work involving physical danger or health risks

Ex: Firefighters receive hazard pay for responding to emergency situations. 
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living wage

the minimum income necessary for a worker to meet basic needs without relying on public assistance or private charities

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minimum wage

the lowest level of salary, set by the law

Ex: The government increased the minimum wage to help low-income workers. 
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pay gap
pay gap
[noun]

the difference between the payment received by two different groups of people

Ex: The pay gap between male and female managers widened despite equal pay laws. 
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wage gap
wage gap
[noun]

the disparity in earnings between two distinct groups of workers

Ex: The gender wage gap remains a significant issue in many industries. 
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health insurance

a financial arrangement that provides coverage for medical expenses, offering individuals or groups protection against the high costs of healthcare services and treatments

Ex: With health insurance, Sarah could visit the doctor without worrying about the full cost of medical consultations. 
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medical insurance

a policy that covers the cost of medical treatment and healthcare services

Ex: Her medical insurance covers doctor visits, surgeries, and prescription drugs. 
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disability insurance

insurance that provides income replacement if the policyholder becomes unable to work due to illness or injury

Ex: She purchased disability insurance to protect her income in case of an accident. 
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unemployment insurance

a government program that provides temporary financial assistance to eligible workers who have lost their jobs

Ex: She filed a claim for unemployment insurance after being laid off. 
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retirement plan

a financial arrangement designed to provide income for an individual after they stop working

Ex: She contributes 10% of her salary to her retirement plan each month. 
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retirement fund

a pool of money accumulated for use after retirement, often through regular contributions and investments

Ex: She started her retirement fund in her 20s with small monthly deposits. 
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pension plan

a retirement savings plan in which an employer or organization contributes money on behalf of its employees, to be used to provide income to those employees during their retirement years

Ex: The company offers a generous pension plan to all employees. 
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annuity
annuity
[noun]

a fixed stream of payments made at regular intervals, typically derived from a capital investment or insurance contract

Ex: She receives a monthly annuity from her retirement fund. 
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severance pay

compensation paid by an employer to an employee upon termination of employment

Ex: She received six months' severance pay after the company downsized. 
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early retirement

the act of leaving a job or career permanently before the typical retirement age

Ex: He chose early retirement to spend more time with his family. 
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pensionable age

the age at which a person becomes eligible to receive a state or company pension

Ex: She reached pensionable age and began receiving her retirement benefits. 
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