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Salary Grade Structure

A salary grade structure lists each grade in the company with its typical designations, pay scale and grade-linked entitlements such as travel class, insurance cover and allowances. It gives employees and managers one reference for what each grade means.

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[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

Every employee is assigned one grade, recorded in the appointment letter and HRMS.
Movement to a higher grade happens only through the promotion process.
Statutory benefits such as PF, ESI (where applicable) and gratuity apply to all eligible employees regardless of grade.
Grade entitlements are governed by the respective policies; in case of conflict, the policy document prevails.

Prepared by
[HR Name]

Approved by
[Authorised Signatory]
Date: [Date]

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What this template includes

Grade codes with the designations that sit in each
Pay scale for each grade
Minimum experience usually expected at each grade
Grade-linked benefits and allowances
Approval authority linked to grade
Notes on how movement between grades happens

When to use it

Mapping designations to grades after a reorganisation
Setting grade-wise entitlements for travel, mobile and insurance
Aligning designations across acquired entities or new branches
Answering employee questions about grade and eligibility

How to customise this template

1List your actual grade codes such as E1–E5, M1–M4
2Map current designations to the right grade
3Fill entitlements from your travel, insurance and expense policies
4Add a column for notice period if it varies by grade
5Share the designation-to-grade view widely and keep pay scales restricted if needed

HR tips

Do not create a new grade for one person; use bands within grades
Keep entitlements consistent with the actual policy documents
Avoid inflated designations that do not match the grade
Update the structure whenever a policy linked to grade changes

For HR & hiring managers

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Frequently asked questions

What is the difference between a grade and a band?+

Companies use the terms differently. Often a grade is a level of work with defined entitlements, and a band is the pay range attached to one or more grades.

Can two different designations be in the same grade?+

Yes. Roles of similar size and responsibility, such as Senior Accountant and Senior HR Executive, can share a grade even though their titles differ.

Does notice period depend on grade?+

In many companies it does, for example a shorter period for junior grades and longer for managers, as set in the appointment letter and policy.

All 50 increment, promotion & career →

[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

Template · Word

Salary Band 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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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]

JOB GRADE MATRIX

Company:: [Company Name]
Matrix Version:: [v1.0]
Evaluation Date:: [DD/MM/YYYY]
Panel:: [HR Name], [Department Head], [Member]

1. Factors and Level Descriptors

Factor (Weight)	Level 1	Level 2	Level 3	Level 4	Level 5
Knowledge and Skills ([x]%)	Basic task knowledge	Trained in one area	Professional in a discipline	Expert across a discipline	Recognised authority
Problem Solving ([x]%)	Follows set steps	Chooses from known options	Analyses and recommends	Solves complex issues	Sets strategy
Accountability and Impact ([x]%)	Own tasks	Own work output	Team or process results	Department results	Business unit results
People Management ([x]%)	None	Guides juniors	Leads a small team	Leads managers	Leads a function
Relationships ([x]%)	Within team	Within department	Across functions	External partners	Senior external stakeholders

2. Job Scoring

Job Title	Knowledge	Problem Solving	Accountability	People Mgmt	Relationships	Weighted Score	Grade
[Designation]	[1–5]	[1–5]	[1–5]	[1–5]	[1–5]	[Score]	[Grade]
[Designation]	[1–5]	[1–5]	[1–5]	[1–5]	[1–5]	[Score]	[Grade]
[Designation]	[1–5]	[1–5]	[1–5]	[1–5]	[1–5]	[Score]	[Grade]
[Designation]	[1–5]	[1–5]	[1–5]	[1–5]	[1–5]	[Score]	[Grade]

3. Score-to-Grade Conversion

Template · Word

Job Grade Matrix

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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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Salary Grade Structure

Preview of the template

1. Grade Chart

2. Grade-linked Entitlements

3. Guidelines

What this template includes

When to use it

How to customise this template

HR tips

Hire top talent from BetterJobs

Frequently asked questions

Related HR templates