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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
A preview of the structure. Download the PDF or CSV for the complete, ready-to-use 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.
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How to use this template
- 1
Define your levels
List job levels from entry through executive and the scope, autonomy, and impact that distinguish each.
- 2
Price the market
Pull survey data for benchmark roles, pick a target percentile, and set the midpoint for each band.
- 3
Build the ranges
Apply a consistent range spread (e.g. 40-50%) around each midpoint to set the min and max.
- 4
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.