how to establish salary ranges
1 Establish salary range midpoints (refer to the sample): 2  Set the midpoint of your lowest salary range (grade 1) equal to the average of the lowest two market average pay rates as reported on the spreadsheet. 3  Set grade 2's midpoint 15% higher than grade 1. Set the midpoint of your lowest salary range (grade 1) equal to the average of the lowest two market average pay rates as reported on the spreadsheet. 2  Set grade 2's midpoint 15% higher than grade 1.