What is the difference between Pay Grade and Pay Scale?

Answer Posted / richachy

Pay Scale is the specific set of information that determines a preconfigured monthly, semi-monthly, or hourly rate of pay. It consists of Pay Scale Area, Pay Scale Group and Level, Pay Scale Type, and Capacity Utilization Level.

Pay Scale would be used if there are steps based on time or other criteria such as can be found in a union agreement. However, it can also be used for salaried employees. Pay Grade would be used if most of the employees were salaried. Pay Grade is also tied to Compa Ratio while Pay Scale is not.


Pay Scale Structure means creation of Payroll area , Pay scale type,area, group and levels with EmpSub group grouping for PCR & CAP's.

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