Salaries should be consistent with the organisation’s grading structure – the higher the grade the higher the salary. This ensures that the principle of equal pay for equal work is followed.
Salaries should be fair. Consider what other similar organisations are paying people for carrying out similar jobs.
The grading and salary system should be transparent and easy to understand. This means that staff can clearly see where their salary fits within the organisation’s overall grading and salary structure. This helps to ensure fairness and consistency because it enables staff to keep the organisation accountable.
To set a salary for a particular job, four steps need to be taken:
