This document provides guidance on how to create salary ranges for different grades. It recommends benchmarking competitor salaries to determine appropriate pay scales and percentiles. The midpoint should be selected first before establishing minimum and maximum salaries using formulas. The midpoint for the next grade up can be calculated by taking the current midpoint, multiplying it by the midpoint progression percentage, and adding the two values together. Following these steps allows an organization to systematically develop salary bands for different levels.

1. How to create Salary Range
For Different Grade.
Draft different range using our pay range through mid point progression.

2. Benchmarking
•Evaluating and checking with our competitors
•Tool - Pay scale (Price a job) Wheather the market is
at 50% percentlice or 75% Percentile
•Whats the average salary going on the position?
Midpoint
Drafting Pay
range

13. Once we have the averge percentile of the designation ie. Recruiter I need not to do benchmarking for other
grades in same function or see midpoint again and again. For the same level with diffirent experience you can
find any one designation midpoint and make their ranges
Before you start making your ranges you should select your midpoint progression and pay range
What is midpoint progression ? Is the average diffirent which you want to keep between the two grades. Ie.
30% or 40% difference depend upon you and you can also refer salary survey Like what is the average midpoint
progression going on. Or we can decide our self generally it will be between 30to40% range between one
designation to another.
50% Percentile

14. The Minimum Formula is = Pay Grade midpoint/(1+Pay Range/2)
The Maximum Formula is = Minimum*(1+Pay Range)
To Identify the Mid Point of Upper designation =(The Older Midpoint* Midpoint Progression)+ The Older Midpoint Ie.
=(497862*30%)+497862 The answer 647220
This is how we drive and create our salary bands for any different different level in our organization. For any one level of