Terms that come up in job ads, interviews and contracts, explained in one line. They're general guidance: exact conditions depend on the country and your contract.
Pay
Gross pay: what the employer pays before tax and contributions.
Net or take-home pay: what reaches your account after tax and contributions.
OTE (on-target earnings): base salary plus expected commission or bonus.
Pro rata: pay scaled to the hours or days you work.
Benefits: pension contributions, health insurance, holidays and other perks beyond salary.
Contracts
Permanent contract: no fixed end date.
Fixed-term contract: ends on a set date or when a project finishes.
Probation period: an initial period in which either side can end the contract more easily.
Contractor or freelancer: you work for yourself and invoice clients.
EOR (employer of record): a company that employs you locally on behalf of a foreign employer.
At-will employment (US): either side can usually end employment at any time, with some legal limits.
Leaving a job
Notice period: how much warning you must give before leaving, or receive before dismissal.
Garden leave: you're paid during your notice period but not asked to work.
Severance or redundancy pay: compensation when your role is eliminated.
P45 (UK): the form your employer gives you when you leave, showing pay and tax to date.
Hiring
ATS (applicant tracking system): software companies use to receive and filter applications.
Right to work: legal permission to work in a country.
Visa sponsorship: the employer supports your work visa application.
Relocation package: help with moving costs when a job requires you to move.
FAQ
Do UK and US job ads show gross or net pay?
Almost always gross annual pay (or hourly in some sectors).
What's the difference between a contractor and an employee?
Employees get benefits and have tax withheld by the employer; contractors invoice and handle their own taxes.