Free Tool

Pay Structure Model

A pay structure model builds salary grades with defined minimum, midpoint and maximum values. Use the linear method for a single grade or the exponential method to model progression across many grades at once.

Choose Calculation Method

About Pay Structure

A pay structure determines and administers compensation based on responsibilities, skills, performance and market conditions.

Structures consist of salary grades with defined minimum, midpoint and maximum values. The progression between grades determines how pay increases up the hierarchy.

Understanding the parameters

Midpoint: target salary for fully proficient employees in Grade 1
Pay Range %: spread between min and max (e.g. 40% means ±20% from midpoint)
Pay Progression %: percentage increase between consecutive grades
Grade: the salary grade to calculate for

Enter Pay Structure Parameters

Grade *Reference Midpoint (Grade 1) *

Pay Range % *

Spread from min to max (40% means ±20% from midpoint)

Pay Progression % *

Percent increase from one grade to the next

Indicative only. For pay decisions that matter, our consultants provide the full methodology and market data.