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Salary Band Structure

A salary band structure sets the minimum, midpoint and maximum pay for each band so that every role is paid within a defined range. Compensation teams publish it after benchmarking and use it to guide offers, increments and promotions.

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[Company Logo][Company Name]

SALARY BAND STRUCTURE

Company:: [Company Name]
Effective From:: [DD/MM/YYYY]
Basis:: Annual fixed CTC at [P50] market position
Version:: [v1.0]

1. Band Table (₹ per annum)

Band	Level Description	Minimum	Midpoint	Maximum	Range Spread	Midpoint Progression
B1	Entry / Trainee	[Amount]	[Amount]	[Amount]	[x]%	–
B2	Executive / Associate	[Amount]	[Amount]	[Amount]	[x]%	[x]%
B3	Senior Executive / Specialist	[Amount]	[Amount]	[Amount]	[x]%	[x]%
B4	Manager	[Amount]	[Amount]	[Amount]	[x]%	[x]%
B5	Senior Manager / Head	[Amount]	[Amount]	[Amount]	[x]%	[x]%

2. Location Differential

Location Tier	Cities	Adjustment to Band
Tier A	[Cities]	[x]%
Tier B	[Cities]	[x]%
Tier C	[Cities]	[x]%

3. Band Rules

New offers are normally made between the minimum and the midpoint; offers above the midpoint need approval from [Authorised Signatory].
Employees below the band minimum are brought to the minimum within [x] cycles, subject to performance.
Employees at or above the maximum receive any merit award as a one-time payment, not as an addition to fixed pay.
On promotion, pay is moved to at least the minimum of the new band.
Bands are reviewed every year after market benchmarking.

4. Formulae

Range Spread = (Maximum − Minimum) ÷ Minimum × 100
Midpoint Progression = (Midpoint of higher band − Midpoint of lower band) ÷ Midpoint of lower band × 100
Compa-ratio = Employee fixed CTC ÷ Band Midpoint

Prepared by
[HR Name]
Compensation & Benefits

Approved by
[Authorised Signatory]
[Designation]
Date: [Date]

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What this template includes

Band codes with a short description of the level of work
Minimum, midpoint and maximum annual fixed pay
Range spread showing the width of each band
Midpoint progression between consecutive bands
Overlap between bands, which affects promotion increases
Rules for employees below minimum or above maximum

When to use it

Introducing formal pay ranges for the first time in a growing company
Revising ranges after an annual market review
Checking whether a new offer falls within the approved range
Explaining to managers why an increment is capped at band maximum

How to customise this template

1Set the number of bands to match your organisation size
2Enter midpoints from your benchmarking at the chosen market position
3Choose wider spreads for senior bands and narrower ones for junior bands
4Add a city differential table if pay differs by location
5Publish a manager guide alongside the structure

HR tips

Keep band count modest; too many bands make promotions feel trivial
Review the structure yearly, not only when complaints arise
Bring employees below minimum into the band in a planned way
Check overlap so a promotion does not land below a peer in the lower band

For HR & hiring managers

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Frequently asked questions

What is a salary band?+

A salary band is the pay range, from minimum to maximum, that applies to all roles placed at a particular level in the organisation.

What is range spread?+

Range spread is (maximum − minimum) ÷ minimum, shown as a percentage. It tells you how much room there is for growth within a band.

What happens if an employee is above the band maximum?+

Many companies freeze fixed pay increases and pay any merit award as a one-time lump sum until the band moves up or the employee is promoted.

All 50 increment, promotion & career →

[Company Logo][Company Name]

SALARY GRADE STRUCTURE

Company:: [Company Name]
Effective From:: [DD/MM/YYYY]
Owner:: [HR Name]

1. Grade Chart

Grade	Typical Designations	Typical Experience	Pay Scale (₹ p.a.)	Notice Period
W1	Operator, Helper, Office Assistant	[x] years	[Amount] – [Amount]	[Notice Period]
E1	Executive, Associate, Engineer	[x] years	[Amount] – [Amount]	[Notice Period]
E2	Senior Executive, Senior Engineer	[x] years	[Amount] – [Amount]	[Notice Period]
M1	Assistant Manager, Team Lead	[x] years	[Amount] – [Amount]	[Notice Period]
M2	Manager, Senior Manager	[x] years	[Amount] – [Amount]	[Notice Period]

2. Grade-linked Entitlements

Grade	Travel Class	Hotel Limit (₹/night)	Mobile Reimbursement (₹/month)	Group Medical Cover (₹)	Approval Limit (₹)
W1	[Class]	[Amount]	[Amount]	[Amount]	Nil
E1	[Class]	[Amount]	[Amount]	[Amount]	[Amount]
E2	[Class]	[Amount]	[Amount]	[Amount]	[Amount]
M1	[Class]	[Amount]	[Amount]	[Amount]	[Amount]
M2	[Class]	[Amount]	[Amount]	[Amount]	[Amount]

3. Guidelines

Template · Word

Salary Grade Structure

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[Company Logo][Company Name]

SALARY INCREMENT LETTER

Ref. No.:: [Reference Number]
Date:: [Date]

To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]
[Work Location]

Subject: Increment in Salary

Dear [Employee Name],
Congratulations! In recognition of [Reason – e.g. your successful confirmation / completion of the Certification Name certification / your contribution to Project Name], we are happy to grant you an increment in your salary.

Particulars	Details
Current Gross Monthly Salary	₹[Amount]
Increment Amount (per month)	₹[Amount]
Increment Percentage	[Percentage]%
Revised Gross Monthly Salary	₹[Amount]
Revised Annual CTC	₹[CTC]
Effective From	[Effective Date]

The increment will be distributed across your salary components as per company policy, and a revised salary breakup is available from HR on request. Statutory contributions such as PF will be adjusted in line with the revised Basic.

Letter · Word

Salary Increment Letter

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[Company Logo][Company Name]

SALARY REVISION LETTER

Ref. No.:: [Reference Number]
Date:: [Date]

Private and Confidential
To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]

Subject: Revision of Salary

Dear [Employee Name],
We are pleased to inform you that the management has reviewed your compensation and approved a revision of your salary. Your annual Cost to Company is revised from ₹[Previous CTC] to ₹[CTC], effective [Effective Date].

Component	Previous Monthly (₹)	Revised Monthly (₹)
Basic Salary	[Amount]	[Basic Salary]
House Rent Allowance	[Amount]	[HRA]
Special Allowance	[Amount]	[Amount]
Gross Salary	[Amount]	[Amount]
Employer PF	[Amount]	[Amount]
Gratuity Provision	[Amount]	[Amount]
Monthly CTC	[Amount]	[Amount]
Annual CTC	[Previous CTC]	[CTC]

The revised salary will be reflected in your payroll for [Month YYYY]. Arrears from [Effective Date] to [Date], if any, will be paid along with the salary of [Month YYYY], subject to applicable statutory deductions.

Letter · Word

Salary Revision Letter

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[Company Logo][Company Name]
SALARY REVIEW FORM
Review No.:
[Reference Number]
Date:
[Date]
Section 1 – Employee Details
Employee Name [Employee Name]
Employee ID [Employee ID]
Designation [Designation]
Department [Department]
Date of Joining [Date of Joining]
Reporting Manager [Reporting Manager]
Section 2 – Reason for Review
- Employee request
- Confirmation after probation
- Increase in role scope
- Internal pay parity concern
- Market / retention concern
- Other: [Specify]
Section 3 – Current Pay Position
Form · Word
Salary Review Form
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[Company Logo][Company Name]
MARKET SALARY ANALYSIS REPORT
Company:
[Company Name]
Prepared for:
[Leadership Team / Board]
Prepared by:
[HR Name]
Date:
[Date]
1. Executive Summary
Our overall fixed pay sits at [x]% of the market median for the roles reviewed. The largest gaps are in [Role Family], where pay is at [x]% of median and voluntary attrition is [x]%. We recommend [Option] at an estimated annual cost of ₹ [Amount].
2. Scope and Data Sources
- Roles covered: [No.] roles across [Role Families]
- Locations: [Cities]
- Sources: [Survey / Source Names], data as of [DD/MM/YYYY]
- Comparison basis: annual fixed pay / total cash
3. Findings by Role Family
Report · Word
Market Salary Analysis
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[Company Logo][Company Name]
PROMOTION LETTER
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]
[Work Location]
Subject: Promotion to [New Designation]
Dear [Employee Name],
We are delighted to inform you that, in recognition of your performance and contribution, you have been promoted to the position of [New Designation] in Grade [New Grade], with effect from [DD/MM/YYYY].
Consequent to this promotion, your annual Cost to Company (CTC) has been revised to ₹[Revised CTC] (Rupees [Amount in Words] only). The component-wise breakup is given in the enclosed Annexure. Statutory deductions such as PF and professional tax will apply as per law.
Letter · Word
Promotion Letter
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[Company Logo][Company Name]
PROMOTION ANNOUNCEMENT
Subject: Congratulations to [Employee Name] on Promotion as [New Designation]
From:
[HR Name] / [Department Head]
To:
[Distribution List]
Date:
[Date]
Ref. No.:
[Reference Number]
Dear Team,
We are pleased to announce that [Employee Name], currently [Current Designation] in the [Department] team, has been promoted to [New Designation] with effect from [Effective Date].
[Employee Name] joined [Company Name] on [Date of Joining] and has consistently delivered strong results. Some notable contributions include [Achievement 1], [Achievement 2] and [Achievement 3]. This promotion recognises that commitment and the trust the leadership team places in [his/her/their] ability to take on larger responsibilities.
New Responsibilities
Email template · Word
Promotion Announcement
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Employee Name	[Employee Name]
Employee ID	[Employee ID]
Designation	[Designation]
Department	[Department]
Date of Joining	[Date of Joining]
Reporting Manager	[Reporting Manager]

[Company Logo][Company Name]

DESIGNATION CHANGE LETTER

Ref. No.:: [Reference Number]
Date:: [Date]

To,
[Employee Name]
Employee ID: [Employee ID]
[Department]
[Work Location]

Subject: Change in Designation

Dear [Employee Name],

This is to inform you that, consequent to [reason, e.g. the restructuring of the Operations function / harmonisation of job titles across locations / your move to the Customer Success team], your designation has been changed as detailed below with effect from [Effective Date].

Particulars	Existing	Revised
Designation	[Current Designation]	[New Designation]
Grade / Band	[Current Grade]	[Revised Grade]
Department	[Department]	[Revised Department]
Reporting Manager	[Current Manager]	[Reporting Manager]

Letter · Word

Designation Change Letter

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Salary Band Structure

Preview of the template

1. Band Table (₹ per annum)

2. Location Differential

3. Band Rules

4. Formulae

What this template includes

When to use it

How to customise this template

HR tips

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Frequently asked questions

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