Pay Structure
Salary structure
Also called: pay structure, compensation structure
The complete framework of pay grades and ranges an organization uses to assign compensation.
A salary structure is the full set of pay grades, ranges, and overlap rules an employer uses to administer compensation. A structure has a few key design choices:
- Number of grades (often 10–30 for individual contributors and managers, plus separate executive grades)
- Range spread per grade (often wider at higher levels)
- Overlap between grades (typically 25–50% — the top of grade 5 overlaps with the middle of grade 6)
- Geographic differentials if you maintain separate structures per region
- Aging cadence — usually annual updates based on survey data
Most organizations maintain 1–3 structures: one for the US, one for international, and sometimes one for executives. Structure design is reviewed annually as part of the comp cycle.