Pay Grade Structure

Base Pay Structure

Salary Formula 15A

Source: Strategic Compensation in Canada written by Richard J. Long

Pay Structure Elements

Pay Schedule A pay schedule is a set of multiple pay ranges, each for different job markets (geographical locations, industry etc) that share the same pay grade
Pay Grades A grade is an identifier of a pay range. Multiple jobs can be grouped under a specific pay grade.
Pay Ranges A pay (salary) range is the span between the minimum and maximum base salary an organization will pay for a specific job
Pay Structure A salary range structure (or salary structure) is a hierarchal group of jobs and salary ranges within an organization.


Example of a Pay Grade Structure

Salary Formula 15B

Diagram: Tower Watson Integrated Rewards & Career Framework

Source: Tower Watson