Toolkits

Pay Structure Model

Pay Structure is made up of grade, minimum salary, midpoint salary and maximum salary. Pay range is the difference between the maximum and minimum salary for grade in percentage terms.

Pay Structure Model

Design salary bands and grade structures with calculated progression between levels

Choose Calculation Method

About Pay Structure

A pay structure is a system used by organizations to determine and administer employee compensation, based on factors such as job responsibilities, skills, performance, and market conditions.

Pay structures typically consist of salary grades with defined minimum, midpoint, and maximum values. The progression between grades determines how salaries increase as employees move up the organization hierarchy.

Understanding the parameters:

  • Midpoint:The target salary for fully proficient employees in Grade 1
  • Pay Range %:Determines the spread between minimum and maximum salary (e.g., 40% means ±20% from midpoint)
  • Pay Progression %:Percentage increase between consecutive grades
  • Grade:The salary grade you want to calculate for

Enter Pay Structure Parameters

$
%

This determines the spread from min to max (e.g., 40% means ±20% from midpoint)

%

Percent increase from one grade to the next