Is the grouping of pay grades or pay bands. There can be more than one pay structure in a Compensation Program. For instance, there may be one pay structure for service and maintenance positions, one for professional and one for managerial. Or, the organization may have just one structure for all positions. A salaried employee will receive the same compensation regardless of the number of hours worked.
Hourly compensation refers to pay based on hours worked.
An hourly employee will receive a set hourly fee for each hour worked and should receive time and one half for any hours worked above 40 in one week. All jobs in one pay grade will be paid similarly. It is made up of a minimum and maximum. The organization may assign a name to the pay grade which would indicate where it falls in comparison to other pay grades. For instance, pay grade 27 would have a lower minimum than a pay grade 29.