What Is Salary Band? | HR Glossary | BambooHR
A defined pay range for a role or grade, with a minimum, midpoint and maximum.
A salary band is a structured pay range assigned to a role, grade or level, typically defined by a minimum, midpoint and maximum. Bands bring order and fairness to pay by ensuring people in comparable roles are paid within a consistent, defensible range.
Bands are usually built from job evaluation and market benchmarking, so that internal fairness and external competitiveness are balanced. An employee's position within their band can reflect experience, performance and time in role, and merit increases move them through it.
With the EU Pay Transparency Directive requiring greater openness about ranges, well-designed and documented salary bands are becoming essential. They give recruiters and managers a clear framework and reduce the risk of unexplained pay gaps.
