Dear All, Can anybody suggest to me how to prepare salary structure and grades for various jobs? I want to know whether a person entering as an ITI can grow up to a management level through experience, provided he has improved his educational qualifications. For an entry-level position like ITI, what should be the starting salary, and what is the statutory rule for a salary increase in a year? My company is in the field of engineering equipment manufacturing having more than 60 employees spread over India.
I hope I will get good answers from seniors.

From India, Bangalore

Hello Sherin Pereira,

In Indian companies job grading and banding is not prevalent as it is being practice in western countries or in the Middle Eastern countries. Therefore, I have strong feeling how this salary structure based on grading and banding will be compatible to your organization. This typical western salary structure is consisting of pay band Minimum-Mid-Maximum pay range in each salary grade code.
Then comes benefits part of compensation which consist of many elements such as HRA, Social Allowance, Transportation Allowance, Education Allowance,
In addition some : Operational Allowance such as Shift Allowance, Hazardous Allowance, On-call Allowance etc,.

Now lets focus on developing the salary grade structure for this you have to arrive at first job grading to fit jobs into salary grade code.

Job grading is the process by which the remuneration band, or job grade for a particular post is established. It is an assessment of a position, not a person.

Job grading is a management-initiated process, designed to align job design and work
value with the operational needs of the organization.

First prepare organizational chart with all division and sections to determine the location of the job positions and appropriate weightage in the organization, as part of their workforce planning processes.
The accepted job grading methodology by using the factors assessing a job is:
Complexity, Decisions, Relationships, Experience, Skills and Supervision.
Work volume is not a consideration in the Job Grading process.

Then work out the annual salary budget for deciding the compensation philosophy and strategy of the organization. You must have some market data for comparison with market salary for various jobs positions in your organization. Distribute logical weightages to each job by adopting ranking method because number of jobs are 60 therefore ranking method is best in your case. In other words rank all jobs as per the importance to your organization or merit and place them into level as grade and fix salary range as band for pay progression with experience and qualification.
For your understanding apply following principle:
1. Nature of Job= Pay Bands for technical, non technical, kind of classification.
2. Level of Job = Grading

a. Organizational Chart outlining the position of the post and its relationship to other posts in the
organizational unit
b Job Analysis
c Job description
d. Job Evaluation

I hope this broader guidelines will be helpful in developing job grade and pay bands.


From Saudi Arabia

Dear Sherin,
Designing 0f Salary Structure -
Flow Chart of Salary structuring & Gradation -

From Oman, Muscat
Hello HR’s , I am planning to set Grading System (levels ) with compensation policy . Could you share any template , we are from IT Company ? Regards Shweta
From India, Indore
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