Understanding Pay Scale 11110-540(14)-18670-560(4)-20910: Can You Explain This Structure?

The user's input is mostly correct but could be formatted and punctuated for clarity:

"What is the meaning of pay scale 11110-540(14)-18670-560(4)-20910?"

The question seems to be asking for an explanation of the pay scale structure provided.

Once you reach 20910/-, that's the end of the road in this scale. You should be promoted, or else you are stagnant at this scale. Generally, there won't be any increase in the salary thereafter, other than DA and allowances.

Hi,

As per the above payscale, it is structured as follows: 11110-540(14)-18670-560(4)-20910.

The starting basic amount is Rs. 11,110. The Efficiency Bar (EB) amount is Rs. 540 for 14 years. There is a yearly increment of Rs. 540 for up to 14 years, totaling Rs. 7,560 (Rs. 540 x 14 yrs = Rs. 7,560).

Calculations are as follows:
Rs. 11,110 + Rs. 7,560 = Rs. 18,670
Rs. 18,670 + Rs. 2,240 (Rs. 560 x 4 yrs) = Rs. 20,910 (End Payscale)

As a gesture of goodwill, management may consider the yearly increment of Rs. 540 even if you have crossed the end payscale. However, this increment is not automatic.

Thank you & Regards

The first figure is the minimum of the scale, and the last figure is the maximum. There are two sets of figures in between, one set in brackets. The figures in between represent the quantum of annual increments, while the figures in brackets indicate for how many years (or how many such increments would be applicable) before transitioning to the next stage of higher increments. This is the standard format for indicating a wage scale for unionized workers and is not as commonly used for executives, except in government and public sector organizations where it still prevails.

Gerry

Dear All,

Thank you for this information. In fact, many people do not know about the same. I personally feel that points like this should be taught in MBA or MPM programs as they provide the basic foundation to gain such knowledge.

Open for comments.

Hi,

I am working in a company in the HR department and am looking for a change. Please inform me as early as possible.

Regards,
Devi Bisht

I agree with you. It's surprising that many HR people are not aware of it. This is the basics of compensation management. In spite of the explanation, it is pathetic to find people asking whether the figures in the given scale are "Basic or Basic, DA & HRA?". How can the scales reflect: DA, which is a variable amount (can change every quarter) HRA, which is a percentage of Basic pay and depends on the location where a person is posted. Pay Scales are generally durable and long-term devices; typically in use for 5 to 10 years until they are revised. It should definitely be taught in MBA, MPM, etc. as many join the private sector and small family-run companies; where there are no standardized salary and wages administration and hence this widespread ignorance. Regards.

Hi Mr. Pon,

Your interpretation of the scale is incorrect, and others have clarified what I intended to convey. Thanks to my friends for their help. I kindly request Mr. Pon to verify before considering an issue resolved. Please take it positively.

Hi Mr. Pon,

Your interpretation of the scale is incorrect, and others have clarified what I intended to convey. Thanks, friends. I kindly request Mr. Pon to verify before considering an issue resolved. Please take it positively. Oh, I apologize; you may have mistakenly typed 140 instead of 540.

I agree with Gerry. What is shown is the basic pay initially and then annual increments at the fixed rates for a few years, as shown in the brackets. In some cases, EB indicates that the next increment in the scale will be granted only after a special appraisal of the employee regarding his efficiency level. Finally, it reaches the maximum pay when there will be no more increase in the basic pay.

P. P. Subramanian

Dear,

In the language of compensation management, it is known as Broad Ranges. The figures shown in the question are the basic salary. With upward elevation, promotion, or increment, an employee will achieve the next higher basic. Such a structure is designed to differentiate the skills and experience of each employee, and this structure maintains the harmony of compensation paid to the employees. Generally, well-organized organizations create such a compensation structure. Each slab of progression is placed against the grade. It starts with the minimum basic being achieved by an employee in that particular grade and ends with the highest basic in that particular grade.

To arrive at this kind of salary progression structure, a lot of work/study is done, such as understanding the present compensation structure of the organization, comparing the structure with the industry, and finally comparing the structure with the competitors of the business and the capacity of the employer to pay. Once all these steps are completed, the mean, standard deviation, and bell curve of each of the compensation components are prepared to make decisions on the salary progression under each grade.

Regards,
AS