Salary Scale is a predesigned one which we can see in Government Sector/Universities/PSUs etc. This is subjected to regular / periodical changes, like uniform revisions carried out periodically. Meanwhile the Salary Structure is the Structure evolved for a particular Quantum of Compensation which can be changed then & there. In Scale, the calculation starts from the base, on the other hand, in Structure, the Total amount is designed first and according to that the structure is designed. In the first case, it is bottom to top and in the latter case, it's from top to bottom.
From India, Mumbai
From India, Mumbai
Dear Sir,
The thing which you are talking about is technically know as Braodbanding and is also know as progression scale . A salary structure comprises of various components viz . Basic,DA/VDA/FDA ,Convenyance and many other allowances and fringe benefits .
To arrive at a progression scale you should ideally start with study of the current compensation structure in your organisation , data pertaining to each & every employee in the organisation needs to clubbed together then compute mean , average and standard deviation of each of the component for each grade across the organisation.This exercise will show you the variation in each of the component in that particular grade .Thereafter you should carry out a salary survey in similar industry and logically arrive at figures bein paid for each particular designation in the area.
Now under each grade for each component you will be having a lowest and the highest figures .
Clerk - 3500 - 4000- 4500-5000-5500-6000-6500
Shown above the progression scale and in similar way you would be able to arrive at salary progression chart for each grade in the organisation.
Regards,
Avinash Singh
From India, Rohtak
15The thing which you are talking about is technically know as Braodbanding and is also know as progression scale . A salary structure comprises of various components viz . Basic,DA/VDA/FDA ,Convenyance and many other allowances and fringe benefits .
To arrive at a progression scale you should ideally start with study of the current compensation structure in your organisation , data pertaining to each & every employee in the organisation needs to clubbed together then compute mean , average and standard deviation of each of the component for each grade across the organisation.This exercise will show you the variation in each of the component in that particular grade .Thereafter you should carry out a salary survey in similar industry and logically arrive at figures bein paid for each particular designation in the area.
Now under each grade for each component you will be having a lowest and the highest figures .
Clerk - 3500 - 4000- 4500-5000-5500-6000-6500
Shown above the progression scale and in similar way you would be able to arrive at salary progression chart for each grade in the organisation.
Regards,
Avinash Singh
From India, Rohtak
salary scale is grid of salaries. organisation may have diff. salary scales. but salary structure means components of salary like basic, hrs, da, ca, ea etc.
From Nigeria
From Nigeria
Hi!
Looks like there is a serious compensation terminology gap that needs clarification in this site. Indeed, it's been sometime since I have seen many use the word "salary structure" to refer to "salary components", and others use the word "salary scale" to refer to the word 'salary structure".
I don't know if we are using different dictionaries and/ or different HR/ Compensation reference materials. I am also wondering if dictionaries have different meanings in each continent or country.
I think HR practitioners must learn to use compensation language when talking about compensation matters, so they can understand each other better. And, the good source for compensation terminologies are the international compensation consultants like HayGroup, Hewitt Associates, Watson Wyatt, and William Mercer. If you have read their regular annual compensation survey reports for each country, you will easily understand compensation language/ terminologies.
Just for the clarification of everyone, the following are the appropriate definitions of the terms mentioned above:
Salary Structure - refers to the designed "total salary range" of an organization that is composed of Job Grades or Bands, with each Job Grade having its own "internal range" called minimum, median, and maximum rates.
Salary component - refers to the "mix of a compensation package" that is normally offered to an employee during hiring. In compensation lingo, an employee salary is generally referred to as a mix of the "base salary" and "benefits". The base salary is what is generally referred to as the "basic pay" while the "base salary" plus "benefits" is generally referred to as the "Gross Pay". Hence, those who say that the salary is composed of base plus the cash and non cash benefits are actually referring to the "gross pay".
There is no such thing as "salary scale" in compensation terminology. It is only in this site that some HR practitioners try to use this term. According to Webster, a scale is "a measure characterized by marks along a line, with regular spaces in between, used for measuring." (e.g. thermometer).
I hope this clarifies things.
Wish you happiness and good health this 2010.
Ed Llarena, Jr.
Riyadh, KSA
From Philippines, Parañaque
Looks like there is a serious compensation terminology gap that needs clarification in this site. Indeed, it's been sometime since I have seen many use the word "salary structure" to refer to "salary components", and others use the word "salary scale" to refer to the word 'salary structure".
I don't know if we are using different dictionaries and/ or different HR/ Compensation reference materials. I am also wondering if dictionaries have different meanings in each continent or country.
I think HR practitioners must learn to use compensation language when talking about compensation matters, so they can understand each other better. And, the good source for compensation terminologies are the international compensation consultants like HayGroup, Hewitt Associates, Watson Wyatt, and William Mercer. If you have read their regular annual compensation survey reports for each country, you will easily understand compensation language/ terminologies.
Just for the clarification of everyone, the following are the appropriate definitions of the terms mentioned above:
Salary Structure - refers to the designed "total salary range" of an organization that is composed of Job Grades or Bands, with each Job Grade having its own "internal range" called minimum, median, and maximum rates.
Salary component - refers to the "mix of a compensation package" that is normally offered to an employee during hiring. In compensation lingo, an employee salary is generally referred to as a mix of the "base salary" and "benefits". The base salary is what is generally referred to as the "basic pay" while the "base salary" plus "benefits" is generally referred to as the "Gross Pay". Hence, those who say that the salary is composed of base plus the cash and non cash benefits are actually referring to the "gross pay".
There is no such thing as "salary scale" in compensation terminology. It is only in this site that some HR practitioners try to use this term. According to Webster, a scale is "a measure characterized by marks along a line, with regular spaces in between, used for measuring." (e.g. thermometer).
I hope this clarifies things.
Wish you happiness and good health this 2010.
Ed Llarena, Jr.
Riyadh, KSA
From Philippines, Parañaque
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Salary Scale.xls
Salary-Note.doc