Salary Range or Pay Range

Posted in Human Resources Terms, Total Reads: 8068

Definition: 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.

salary range

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.

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