Pay · HR glossary

Pay Structure

A pay structure organises compensation into a defined arrangement of grades, bands or ranges. It provides a framework for setting and reviewing pay across roles.

Example

A company assigns roles to levels with minimum and maximum base salaries and states how employees can move within or between those ranges.

What to keep in mind

A structure needs clear evaluation and progression rules to work consistently. Review market changes, compression and exceptions rather than assuming that publishing ranges alone ensures fair pay.

Further reading

← Browse all HR terms