Salary Range or Pay Range - Definition & Meaning
What is Salary Range or Pay Range?
The last step of the process of establishing pay rates involves fine tuning the pay rates. Fine tuning involves 1. Developing pay ranges 2. Correcting out-of-line rates.
Most employers don't pay only one rate to all the jobs in the same pay grade. For instance, an employee having a longer tenure in the company can’t get paid at the same rate as a beginner = in spite of being in the same pay grade.
Therefore, vertical pay ranges are formed under each pay grade. These are depicted as vertical boxes against each pay range, depicting the maximum, minimum and midpoint pay ranges for each grade. It is also sometimes depicted in a tabular form against each grade.
Vertical Boxes Tabular Form
Hence, this concludes the definition of Salary Range or Pay Range along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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