Pay structures give a framework for wage progression. They can also help encourage appropriate behaviours and performance. Pay progression describes how employees can increase their pay either within or outside a pay structure.
This factsheet explores the purpose of pay structures. It also introduces the ones that are most often used. It considers local pay structures, identifying the main approaches to regional pay differentiation. It examines the impact of pay structures on an employee’s ability to progress and reviews the various ways used to determine pay progression.
This factsheet was last updated by Charles Cotton: Senior Performance and Reward Adviser, CIPD
Charles directs CIPD’s research agenda and public policy on performance and reward. He speaks for CIPD at government consultations on topics such as, pensions, retirement, CEO remuneration, low pay and employee tax.
CIPD Trust
Tackling barriers to work today whilst creating inclusive workplaces of tomorrow.
Bullying
and harassment
Discover our practice guidance and recommendations to tackle bullying and harassment in the workplace.
Related content
Learn about the UK law surrounding workplace pensions and how to choose new schemes or review existing pension arrangements
The annual CIPD–IRN private sector report captures the changing pay and employment trends as well as the drivers of change in the labour market in Ireland
Learn what modern slavery is, as well as HR's role in preventing and tackling it
Learn about the UK law surrounding workplace pensions and how to choose new schemes or review existing pension arrangements
Explores the benefits of flexible working, the types of arrangements commonly used and gives practical tips on implementing flexible working practices
Learn about the SWOT framework, the process of a SWOT analysis, and its advantages and disadvantages