Pay grade

Pay grade

A Pay grade is a unit in systems of monetary compensation for employment. It is commonly used in public service, both civil and military, but also for companies of the private sector. Pay grades facilitate the employment process by providing a fixed framework of salary ranges, as opposed to a free negotiation. Typically, pay grades encompass two dimensions: a "vertical" range where each level corresponds to the responsibility of, and requirements needed for a certain position; and a "horizontal" range within this scale to allow for monetary incentives rewarding the employee's quality of performance or length of service.

Important employers to use pay grades include:

* U.S. military pay grades
* U.S. Government pay grades
* United States Foreign Service: Source: http://www.state.gov/m/dghr/pay/

* United Nations (excerpt):Source: http://www.un.org/Depts/OHRM/salaries_allowances/salary.htm


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