Build your pay system · Pay bands
From individual decisions to a system.
A pay band sets the range for a grade. The whole site uses one reference band: minimum €56,000, midpoint €70,000, maximum €84,000.
From actual salaries to bands
- Production
- Business Support
- Engineering
- Sales
Reading a band
| Measure | Formula | Example (€60,000) |
|---|---|---|
| Compa-ratio | salary ÷ midpoint | €60,000 ÷ €70,000 = 0.86 |
| Range penetration | (salary − minimum) ÷ (maximum − minimum) | €4,000 ÷ €28,000 = 14% |
| Range spread | (maximum − minimum) ÷ minimum | €28,000 ÷ €56,000 = 50% |
Try it: band & compa-ratio calculator
Midpoint €70,000
- Compa-ratio
- 0.86
- Range penetration
- 14%
- Zone
- Lower third
Increase +5.0% → new salary €63,000
A band's level comes from your own pay policy. Where the band's price level comes from – and how to use market data as a check, not a price.
Using market dataMyth: “Collective agreements are enough.”
Myths & facts