Pay structures give a framework for wage progression. They can also help encourage appropriate behaviours and performance. Pay progression describes how employees can increase their pay either within or outside a pay structure.

This factsheet explores the purpose of pay structures. It also introduces the ones that are most often used. It considers local pay structures, identifying the main approaches to regional pay differentiation. It examines the impact of pay structures on an employee’s ability to progress and reviews the various ways used to determine pay progression.

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