Glossary
Pay Grade
Meaning & Definition
Pay Grade is one level in an organization’s pay structure that categorizes different jobs based on similar responsibility levels, skill sets, and compensation. Generally, each pay grade contains a minimum and maximum salary range.
Important Features of Pay Grade
- Provides a structured salary hierarchy.
- Helps ensure consistency in salary structure.
- Enables HR to formulate salaries during hiring, promotion, and increment of the employees.
- Assists in effective salary structuring and planning.
- Gives a structure regarding their salary hierarchy.
Legal Considerations
There is no direct statutory requirement for Pay Grade. The salary within a Pay Grade should be in accordance with the provisions of the Code on Wages, 2019, where applicable.
