Salary Band Framework Template
A salary band framework template to define levels, ranges, and midpoints so pay is consistent, market-aligned, and defensible across every role and team.
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What you get
- A leveling matrix mapping job levels to band names and scope
- A salary band table with min, midpoint, max, and range spread
- Compa-ratio and range-penetration formulas for placement
- A market-pricing and band-refresh process you can repeat yearly
Template preview
The structure, not the finished file. The PDF and CSV carry the complete version.
Framework setup
Set your market target and structure before pricing individual bands.
Inputs
- Target market percentile— e.g. 50th (median) or 60th
- Survey sources— Radford, Mercer, Pave, levels.fyi
- Geographic strategy— national, zone-based, or location-specific
- Range spread— % from min to max, e.g. 45%
Salary band structure
| Band | Level | Min | Midpoint | Max | Range spread % |
|---|---|---|---|---|---|
| B1 | Entry / IC1 | 55,000 | 66,000 | 77,000 | 40% |
| B2 | IC2 | 68,000 | 85,000 | 102,000 | 50% |
| B3 | Senior / IC3 | 95,000 | 118,750 | 142,500 | 50% |
| B4 | Staff / Manager | 130,000 | 162,500 | 195,000 | 50% |
Placement tracker
| Employee | Role | Band | Current salary | Compa-ratio | Action |
|---|
Compa-ratio = salary / band midpoint. Aim for 80-120%; below 80% signals an underpaid risk, above 120% signals a topped-out employee who needs a promotion to keep progressing.
The preview stops here; the template continues in the download.
How to use this template
- Define your levels. List job levels from entry through executive and the scope, autonomy, and impact that distinguish each.
- Price the market. Pull survey data for benchmark roles, pick a target percentile, and set the midpoint for each band.
- Build the ranges. Apply a consistent range spread (e.g. 40-50%) around each midpoint to set the min and max.
- Place and review. Map current employees into bands, flag anyone below min or above max, and review the framework annually.
Frequently asked questions
How wide should a salary band be?
Most companies use a 40-50% range spread (max is 40-50% above min). Wider bands suit senior or specialised roles where experience varies a lot; narrower bands suit standardised entry roles.
How often should I update salary bands?
Refresh bands annually using current survey data. In fast-moving markets or high-inflation periods, a mid-year check on hot roles keeps offers competitive without re-pricing everything.
Should I share bands with employees?
Increasingly yes — pay transparency laws in many regions now require posting ranges. Even where optional, sharing bands and how placement works builds trust and reduces pay-equity complaints.