Hi!
This Salary Structure is a very old model and is usually referred to as the "Thirty-Year Employment Chart." I have also seen a similar chart in the Middle East, which I called the "One Hundred-Year Salary Chart."
As shown by the given example, each Job Grade has thirty (30) steps and an equal increment of Rs 200.
With that information, we can easily conclude that the company's methodology for increasing salaries every year is based on seniority. Therefore, every year, all employees receive an increment of Rs 200, regardless of their performance.
This salary structure can last the employment life of many of the original employees. In fact, the first batch of employees would be retiring before they can reach the 30th step.
Modern salary structures are reviewed and adjusted every three (3) to five (5) years. Their rates are also benchmarked with industry rates; otherwise, they may not be able to fulfill the second principle in Compensation — i.e., External Competitiveness.
Today's organizations and employees would prefer a performance-based methodology. Outstanding performers in many organizations would like to be paid more than the ordinary performers and/or non-performers.
Also, modern salary structures provide more leeway to management regarding the annual increases. Hence, many structures would simply provide the minimum, median, and maximum rates and allow the immediate managers to recommend the appropriate increases per employee — depending on the result of their annual performance review.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
(helps improve corporate governance worldwide, especially in Asia, the Middle East, Africa, and the Pacific Region)