Pay Scale for Employee, How Payscale Works & Types of Scales

What is Pay Scale and How payscale works for different? Find the different scales and the revised pay scale chart for companies in India after 7th pay revision…

Pay scale simply referred to as a salary structure of an employee to be in a position in organization. The system of a company does define how much an employee has to pay for their work based on their rank, status and level as per employer regulations.

In private companies, the level of an employee is based on their higher grade. In other government organizations the employee Gross salary is based on their experience and stability with the department.

Pay scale is an important paper slip which does show the worth of an employee in the market, the higher the salary in Pay the higher the position of employee. Every employee does get a fixed Pay every month as per their connection with the company during joining.

How Pay Scale Work

A company does have better business planning tools which contributes to Pay scale. It is all by creating the specific positions and deciding the value to be provided. The transparency to employees during their joining with the company by providing a clear view of their wage provided thereafter.

The traditional way of negotiation in the salary not seen after the implantation of Pay scales by the employer. This way both the employer and employee get strict to one point of salary for earnings made by business.

Thus employees don’t have to rush to increase their salary with business growth or the employer decreases the salary if business goes down.

There are certain conditions at which the Pay scale of an employee gets affect. Many times the leadership of the company does bring some standard. It is all to bring fair assignment of compensation to the existing as well as new employees.

Pay Scale Chart

Below is the different pay scales revised for different Companies / PSU’s / PSB’s under Central / State Governments. Find each pay scale chart link for different departments mentioned

What does affects Pay scale

The employee brings confidence to the employee that they reasonable wage as per standards. This does make them comfortable in the organization hierarchy.

Individual Company

If the industry or company is an individual one and the business service directors relate to employees working. In these conditions, the high demand of service does ask for higher education and more skills from employees. This does bring resection in the existing employees and does bring new opportunities to the new employees.

Experience in Field

In most cases the skills of an employee does matter a lot, for an organization and having consented with the same skills with growing demand. Timely updating your knowledge and skills to meet the current demand of the company, will automatically increase the Pay.


It is often related to the experience of an employee. An employee at the entry level will have very less responsibility and the experienced employee will have greater responsibility. This does bring a lot of change in the Scale, one having more than 10 years of experience will have a greater effect on salary.


The education background of an employee will bring much effort in the Pay scales. If the company has found someone with exact education for which they work and their entity to service trusted. The company will often pay higher prices to such employees rather than make efforts to educate them and make them educated. Advanced education in the service will always make you greater in organization and as well increase your salary.


Pay scale does get directly related with the certification courses which an individual does earn during their employment. Employees do have to get themselves earned, certification in terms of their employment to meet company business needs and make themselves fit for the job.

In a group of employees one with good certification and training skills selected for a higher Pay scale. In this term, employers also ask their employees to go through higher skills and get themselves certified to ensure skills.

Pay Scale Types

There are three basic structures of Pay scale which mostly adopted by the businesses in determining their earning.

Broadband: Broadband Pay format is the common structure which offers more flexibility in respect to their pay range. Here employees have a clear view of the minimum amount they can expect from the company for the month. Also, the maximum amount they can expect for a year as a whole from the company.

Traditional: Transition Pay structure offers businesses less flexibility. It is in determining the salary of employees as they actually utilize more pay grades. This structure does give clear determination of salaries. It gives a motivation to employees to keep connect with the same company.

Market Based: Market Based Pay Structure is mostly determines by what other employees make pay to their employees. This type of Pay scale structure is most common in recent years. It is directly based on research which has been evaluates by comparing with other companies.

More info on 7th CPC pay scales: Check

  1. How does an employee calculate their Pay scale?

    The government employees calculate their Pay scale based on their 7th pay commission. One does have to follow the basic pay amount, pay band, grade pay, transport allowance, city allowance, house rental allowance and more.

  2. What are the factors add in new Pay scale?

    In recent changes, the energy level employees do have a common pay structure and transparency. The rationalization of current grade pay structure and does modify with the increasing grade in the organization. The common pay scale for every employee incorporated for Pay scale.

  3. What is the benefit of Pay scale?

    The Pay scale does determine the earning of an employee and also how much an employer is spying for the employee. Pay scale does help both employee and employer to know the amount by which they have a clear view of the determination to the business growth.

  4. How does skilled certification increase Pay scale?

    As per the standards of an employer, they seek for employees who have secured certification in that particular technology. Having the certification ensures that the employees are good enough to take the challenges which will in turn increase the business.

Leave a Comment