Paygrade

Paygrade refers to a defined level within a salary scale that applies to jobs or employees within an organization. Each paygrade corresponds to a pay range, typically with a minimum and maximum salary, and may include steps or progression rules. Paygrades are used to classify roles by responsibilities, required qualifications, and experience, helping organizations maintain consistency and manage compensation.

In government and military systems, paygrades provide the basis for base pay and allowances. In the United States, the military uses paygrades for enlisted personnel (E-1 through E-9), warrant officers (W-1 through W-5), and commissioned officers (O-1 through O-10). Pay is determined by grade and time in service or rank, with additional allowances for housing, sustenance, or special duties. Civilian government pay largely follows the General Schedule, which defines grades 1–15, with ten steps within each grade, and other scales such as the Federal Wage System.

In the private sector, organizations sometimes adopt pay grades or salary bands to categorize roles of similar scope. Each grade carries a specified salary range, with progression based on performance, tenure, or market adjustments.

Advantages of paygrades include easier budgeting, clearer career ladders, and pay equity. Criticisms focus on rigidity, potential compression between adjacent grades, and lag with market conditions, requiring periodic review and adjustments.