Pay · HR glossary

Pay Grade

A pay grade groups jobs assessed at a similar level within a compensation structure. It is commonly associated with a salary range and rules for positioning or progression.

Example

Several roles with comparable responsibility are assigned to the same grade, although employees' salaries may differ within its defined range.

What to keep in mind

A grade is not necessarily a single salary or a guarantee of promotion. Explain how roles are evaluated and distinguish movement within a grade from movement into a higher-level job.

Further reading

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