Pay structures give a framework for wage progression. They can also help encourage appropriate behaviours and performance. Pay progression is how employees can get pay increases. This can be either within or outside a pay structure.

This factsheet explores the purpose of pay structures. It also introduces the ones that are most often used. It considers local pay structures, identifying the main approaches to regional pay differentiation. It examines the impact of pay structures on an employee’s ability to progress and reviews the various ways used to determine pay progression.

Member tool: CIPD Buddy BETA
Use AI to find answers on this topic with our prototype. Login to explore CIPD Buddy
  • Report

    Labour Market Outlook

    Read our latest Labour Market Outlook report for analysis on employers’ recruitment, redundancy and pay intentions

  • Factsheet

    Pay fairness and pay reporting

    Find out what's meant by fair pay, what pay information UK employers must disclose by law and the opportunities pay narratives bring.

    For Members
  • Factsheet

    Bonuses and incentives

    Understand the basics of bonuses and incentives, the trends in their application, and how to design and operate schemes effectively and ethically

    For Members
  • Factsheet

    Working hours and time off work

    Understand the basics of the Working Time Regulations, holidays and other leave such as leave for jury service

    For Members
  • Factsheet

    Organisational climate and culture

    Discover why organisational culture is an influential but problematic term, and why employers should focus on organisational climate to more readily enact positive change

    For Members
  • Factsheet

    Pay fairness and pay reporting

    Find out what's meant by fair pay, what pay information UK employers must disclose by law and the opportunities pay narratives bring.

    For Members
  • Factsheets