A pay grade is a unit in systems of monetary compensation for employment. It is commonly used in public service, both civil and

military A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. It is typically authorized and maintained by a sovereign state, with its members identifiable by their distinct ...

, but also for companies of the private sector. Pay grades facilitate the

employment Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any o ...

process by providing a fixed framework of salary ranges, as opposed to a free negotiation. Typically, pay grades encompass two dimensions: a "vertical" range where each level corresponds to the responsibility of, and requirements needed for a certain position; and a "horizontal" range within this scale to allow for monetary incentives rewarding the

employee Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any ot ...

's quality of performance or length of service. Thus, an employee progresses within the horizontal and vertical ranges upon achieving positive appraisal on a regular basis. In most cases, evaluation is done annually and encompasses more than one method. Important employers to use pay grades include: * U.S. uniformed services pay grades * U.S. Government pay grades *

United States Foreign Service The United States Foreign Service is the primary personnel system used by the diplomatic service of the United States federal government, under the aegis of the United States Department of State. It consists of over 13,000 professionals carry ...

United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoni ...

See also