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2018 Salary Ranges Review

• Background:
– In preparation for the year-end cycle, HR is proposing to update the current salary ranges (not updated
since 2013)
– Salary ranges are designed based on market data and need to be updated periodically as they are reflective
of market going pay rates
– Market salary movement during 2013 – 2017 is not reflected in the current salary ranges
– Proposal for salary ranges for 12 countries (covering 91% of our team member population) has been
developed and reviewed by HRLT

• Benefits
– Ensure alignment of compensation structure and pay decision with current market conditions
– Remain market competitive to attack/retain talent while making efficient use of resources
– Provide opportunity to receive a merit increase in 2018 to additional team members, who would be red-
circled under the current salary ranges

• Implementation costs
– Husky team members below salary range minimums after receiving projected merit increase for 2018

• Communication
– 2018 Salary Ranges will be made available to the HRBP network during compensation planning, and
included in the eComp tool

1
Frequently asked questions

2
Definition - Salary Ranges

• Salary range is a range of pay that has been determined to pay team members in jobs
grouped into the same job grade

• They are established by using data from market surveys for employees doing roles of
similar value (size and complexity) in the same country

• They typically have a minimum, midpoint and a maximum, which provide a series of
compensation opportunities throughout the range

3
What Methodology was used to design the Salary Ranges?

• 2017 market compensation data was sourced from Mercer and Willis Towers Watson
to design the salary ranges
• Salary range midpoints were calculated using the market data weighted average for
every Husky job level
• For job levels with no employees/survey job matches, the regression line method was
used to calculate the midpoints
• Range widths were slightly adjusted to gradually align to traditional salary structure
and still maintain implementation costs at a minimum
• Traditional salary structure*:
– Range Spreads are typically consistent at 50% ( approximately 65% of companies)
– Minimums are typically 80% of the midpoint
– Maximums are typically 120% of the midpoint

(*) Market Best Practice as reported by Mercer

4
What are some of the characteristics of Salary Ranges?
• Salary ranges are comprised of values including a minimum, midpoint and a maximum
• The midpoint is reflective on the market median
• Traditional salary structure (Market Best Practice as reported by Mercer):
– Range Spreads are typically consistent at 50% ( approximately 65% of companies)
– Minimums are typically 80% of the midpoint
– Maximums are typically 120% of the midpoint
• For any given job grade, the width of the range (range spread) is symmetrical
• Wider range spreads are common at higher job levels (i.e., 70% - 130%)
• The range spread between the minimum and maximum for a given job grade represent the
mid-range compensation opportunities that can be offered to roles within the same job
grade
• Range minimums and maximums must be adhered

5
Why are we changing our Salary Ranges?

• Salary ranges are designed based on market data and need to be updated
periodically as they are reflective of market going pay rates
• As our salary ranges have not been updated since 2014, market salary movement
during 2014 – 2017 is not reflected in the current salary ranges
• The new salary ranges allow us to become more competitive by providing higher
compensation opportunities and aligning our compensation structure to current
market conditions
• By updating our salary ranges we ensure that:
• our pay decision are consistent with current market conditions, and
• we remain market competitive to attack/retain talent while making efficient use of
resources

6
Why do we have different Range Spreads in Salary Ranges?

• Changing the spread of the current salary ranges allow us to design/implement a salary
structure that is more competitive and efficient
• A narrower range spread at lower job levels provides:
– a higher salary range minimum, which provides a more competitive (higher) pay level for team members at lower
job levels, while increasing our ability to attract the talent we require
– a lower salary range maximum, which allows to better differentiate pay levels amongst adjacent job grades and
motivate team members to seek growth opportunities at higher job levels

• A wider range spread at higher job levels:


– provides a higher salary range maximum which increases our ability to compete in the market for key talent/skill
sets we require at higher job levels
– allows us to foster expertise through longer exposure in roles at higher levels, without compromising our ability to
offer higher compensation opportunities throughout time

7
Why would salary ranges within a country not change by the same
amount?
• Salary Ranges are designed to provide competitive ranges of pay for jobs grouped into the
same job grade
• The midpoint of the salary range is designed based on market data and represents the
competitive market rate of pay for roles grouped into the same job grade.
• The midpoint is expected to be different for each job grade, as it is calculated based on
market data for jobs grouped into the same job grade. Additionally, the midpoint differentials
between job grades are designed to provide a smooth progression from one job grade to
another to create a more consistent salary structure

8
What is the source of the salary range data?

• 2017 market compensation data was sourced from Mercer and Willis Towers
Watson to design the salary ranges

9
How are we going to manage Team Members Below and above the
Range?

• As part of the implementation of the new salary ranges, team members who still are below
range minimums after applying merit increases will be addressed and brought to range
minimum
• Team members who are not eligible for merit increases in a country where we have salary
ranges in place will also be brought to minimum
• Team members in COLA countries where we have salary ranges in place will also be brought
to minimum
• The analysis to identify and address team members below range minimum will be conducted
after the merit cycle is completed
• When a team member is at the maximum of the range, it means that he/she will no longer be
eligible for pay increases unless they get promoted or the salary range is adjusted (where the
market warrants)

10
Are the new salary Ranges being used for Comp Planning at this
point?

• The 2018 Salary Ranges are effective January 1, 2018


• The compa-ratios in the e-comp tool are calculated using the new salary ranges

11
Can we share the salary ranges with team members?

• Salary ranges are a management tool to administer the compensation of our Team Members
• Salary ranges are of strategic value to our company as they are reflective of our ability to pay
and compete for talent in the markets where we operate
• Given the strategic and sensitive nature of the salary ranges they should be treated as
confidential information
• Salary ranges are for the use of specific teams within HR (i.e., HRBPs and Shared Services)
and should be managed with discretion when shared with line management to aid in pay
decisions
• Based on the foregoing observations, salary ranges are not to be shared with the broader
team member population or outside the organization

12
Do we need separate salary ranges for the same job grade to
recognize special skills sets?

• Salary ranges are based on market data and they represent a competitive market rate of pay
for all roles grouped into the same job grade. The market data captures actual compensation
levels for roles of similar value (size and complexity) provided by companies in local markets
• Market data has been reviewed with a great level of detail for designing the new salary
ranges to ensure we provide compensation levels aligned to market conditions for all roles
within the same job grade.
• Based on the above, there is no need to create an additional salary range for the same job
grade to recognize special skills. Special skill sets can be recognized by using the series of
compensation opportunities available within a given salary range

13
2018 Salary Ranges

14
Proposed Salary Structure - Implementation- Canada
CAD CAD
Current Salary Ranges 2018 Proposed Salary Ranges

Range Midpoint Range Midpoint


Level Minimum Midpoint Maximum Min to Mid Max to Mid Level Minimum Midpoint Maximum Min to Mid Max to Mid
Spread progression Spread progression

1 25,200 33,600 42,000 75% 125% 67% 1 28,000 35,000 42,000 80% 120% 50%
2 30,750 41,000 51,250 75% 125% 67% 22% 2 34,000 42,500 51,000 80% 120% 50% 21%
3 35,100 46,800 58,500 75% 125% 67% 14% 3 38,800 48,500 58,200 80% 120% 50% 14%
4 41,400 55,200 69,000 75% 125% 67% 18% 4 43,150 57,500 71,900 75% 125% 67% 19%
5 49,950 66,600 83,250 75% 125% 67% 21% 5 51,000 68,000 85,000 75% 125% 67% 18%
6 58,880 78,500 98,130 75% 125% 67% 18% 6 60,000 80,000 100,000 75% 125% 67% 18%
7 69,750 93,000 116,250 75% 125% 67% 18% 7 66,500 95,000 123,500 70% 130% 86% 19%
8 81,750 109,000 136,250 75% 125% 67% 17% 8 78,400 112,000 145,600 70% 130% 86% 18%
9 94,400 125,800 157,300 75% 125% 67% 15% 9 91,000 130,000 169,000 70% 130% 86% 16%
10 111,300 148,300 185,400 75% 125% 67% 18% 10 103,600 148,000 192,400 70% 130% 86% 14%

• The range spread is between 50% to 86%


– standard range spread of 50% is applied to the lower job levels (1 to 3)
– Wider range spreads at higher job levels (4 to 10)
– range spread same as previous structure for job levels 4 to 6

• The range spread below and above the midpoint varies from 80%-120%, 75% -125% and 70% - 130%

• The midpoint progression between the job grades represents an average increase of 18%

15
Proposed Salary Structure - Implementation - US
USD USD
Current Salary Ranges 2018 Proposed Ranges
Range Midpoint Range Midpoint
Level Minimum Midpoint Maximum Min to Mid Max to Mid Level Minimum Midpoint Maximum Min to Mid Max to Mid
Spread progression Spread progression
1 17,930 23,900 29,880 75% 125% 67% 1 20,400 25,500 30,600 80% 120% 50%
2 22,200 29,600 37,000 75% 125% 67% 24% 2 25,200 31,500 37,800 80% 120% 50% 24%
3 27,600 36,800 46,000 75% 125% 67% 24% 3 31,200 39,000 46,800 80% 120% 50% 24%
4 34,880 46,500 58,130 75% 125% 67% 26% 4 37,125 49,500 61,875 75% 125% 67% 27%
5 43,280 57,700 72,130 75% 125% 67% 24% 5 45,750 61,000 76,250 75% 125% 67% 23%
6 53,780 71,700 89,630 75% 125% 67% 24% 6 57,000 76,000 95,000 75% 125% 67% 25%
7 66,680 88,900 111,130 75% 125% 67% 24% 7 65,800 94,000 122,200 70% 130% 86% 24%
8 81,150 108,200 135,250 75% 125% 67% 22% 8 79,100 113,000 146,900 70% 130% 86% 20%
9 100,730 134,300 167,880 75% 125% 67% 24% 9 96,600 138,000 179,400 70% 130% 86% 22%
10 125,030 166,700 208,380 75% 125% 67% 24% 120,400 172,000 223,600 70% 130% 86% 25%
10

• The range spread is between 50% to 86%


– standard range spread of 50% is applied to the lower job levels (1 to 3)
– wider range spreads at higher job levels (4 to 10)
– range spread same as previous structure for job levels 4 to 6

• The range spread below and above the midpoint varies from 80%-120%, 75% -125% and 70% - 130%

• The midpoint progression between the job grades represents an average increase of 24%

16
Proposed Salary Structure - Implementation - China
CHY CHY
Current Salary Ranges 2018 Proposed Ranges
Range Midpoint Range Midpoint
Level Minimum Midpoint Maximum Min to Mid Max to Mid Level Minimum Midpoint Maximum Min to Mid Max to Mid
Spread progression Spread progression
1 18,560 28,540 38,530 65% 135% 108% 1 20,300 29,000 37,700 70% 130% 86%
2 27,030 41,570 56,120 65% 135% 108% 46% 2 29,750 42,500 55,250 70% 130% 86% 47%
3 39,340 60,510 81,690 65% 135% 108% 46% 3 43,050 61,500 79,950 70% 130% 86% 45%
4 57,260 88,080 118,910 65% 135% 108% 46% 4 63,000 90,000 117,000 70% 130% 86% 46%
5 85,880 132,120 178,370 65% 135% 108% 50% 5 94,500 135,000 175,500 70% 130% 86% 50%
6 128,820 198,170 267,530 65% 135% 108% 50% 6 140,000 200,000 260,000 70% 130% 86% 48%
7 193,210 297,240 401,280 65% 135% 108% 50% 7 195,095 300,000 405,011 65% 135% 108% 50%
8 289,810 445,850 601,900 65% 135% 108% 50% 8 292,642 450,000 607,516 65% 135% 108% 50%
9 434,690 668,750 902,820 65% 135% 108% 50% 9 438,963 675,000 911,274 65% 135% 108% 50%
10 652,040 1,003,130 1,354,230 65% 135% 108% 50% 10 650,315 1,000,000 1,350,035 65% 135% 108% 48%

• The range spread is between 86% to 108%,


– range spread of 86% is applied to the lower job levels 1 to 6
– same range spread as previous structure at job levels 7 to 10

• The range spread below and above the midpoint varies from 70%-130% and 65% - 135%

• The midpoint progression between the job grades represents an average increase of 48%

17
Proposed Salary Structure - Implementation - India
INR INR
2013 Ranges 2018 Proposed Ranges
Range Mid point Range Mid point
Level Minimum Midpoint Maximum Min to Mid Max to Mid Level Minimum Midpoint Maximum Min to Mid Max to Mid
Spread progression Spread progression
1 129,350 199,000 268,650 65% 135% 108% 1 122,500 175,000 227,500 70% 130% 86%
2 187,850 289,000 390,150 65% 135% 108% 45% 2 175,000 250,000 325,000 70% 130% 86% 43%
3 249,730 384,200 518,670 65% 135% 108% 33% 3 245,000 350,000 455,000 70% 130% 86% 40%
4 318,500 490,000 661,500 65% 135% 108% 28% 4 343,000 490,000 637,000 70% 130% 86% 40%
5 500,500 770,000 1,039,500 65% 135% 108% 57% 5 472,500 675,000 877,500 70% 130% 86% 38%
6 715,000 1,100,000 1,485,000 65% 135% 108% 43% 6 721,000 1,030,000 1,339,000 70% 130% 86% 53%
108% 33% 7 955,964 1,470,000 1,984,552 65% 135% 108% 43%
7 949,000 1,460,000 1,971,000 65% 135%
108% 63% 8 1,450,203 2,230,000 3,010,578 65% 135% 108% 52%
8 1,549,800 2,384,300 3,218,805 65% 135%
9 2,081,009 3,200,000 4,320,112 65% 135% 108% 43%
9
10 2,958,935 4,550,000 6,142,659 65% 135% 108% 42%
10

• The range spread is between 86% to 108%


– range spread of 86% is applied to the lower job levels 1 to 6
– same range spread as previous structure at job levels 7 to 10
– added salary ranges for levels 9 and 10

• The range spread below and above the midpoint varies from 70% - 130% and 65% - 135%

• The midpoint progression between the job grades represents an average increase of 44%

18
Proposed Salary Structure - Implementation - Thailand
THB THB
2013 Ranges 2018 Proposed Ranges
Range Mid point Range Mid point
Minimum Midpoint Maximum Min to Mid Max to Mid Level Minimum Midpoint Maximum Min to Mid Max to Mid
Spread progression Spread progression

1 119,800 184,300 248,900 65% 135% 108% 1 126,000 180,000 234,000 70% 130% 86%
2 167,600 257,700 347,900 65% 135% 108% 40% 2 182,000 260,000 338,000 70% 130% 86% 44%
3 234,300 360,400 486,600 65% 135% 108% 40% 3 252,000 360,000 468,000 70% 130% 86% 38%
4 328,500 505,300 682,200 65% 135% 108% 40% 4 357,000 510,000 663,000 70% 130% 86% 42%
5 461,000 709,100 957,300 65% 135% 108% 40% 5 497,000 710,000 923,000 70% 130% 86% 39%
6 646,700 994,900 1,343,200 65% 135% 108% 40% 6 693,000 990,000 1,287,000 70% 130% 86% 39%
7 907,600 1,396,200 1,884,900 65% 135% 108% 40% 7 910,000 1,400,000 1,890,000 65% 135% 108% 41%
8 1,273,500 1,959,200 2,645,000 65% 135% 108% 40% 8 1,274,000 1,960,000 2,646,000 65% 135% 108% 40%
9 1,786,400 2,748,200 3,710,100 65% 135% 108% 40% 9 1,787,500 2,750,000 3,712,500 65% 135% 108% 40%
10 2,506,100 3,855,400 5,204,800 65% 135% 108% 40% 10 2,509,000 3,860,000 5,211,000 65% 135% 108% 40%

• The range spread is between 86% to 108%


– range spread of 86% is applied to the lower job levels 1 to 6
– same range spread as previous structure at job levels 7 to 10

• The range spread below and above the midpoint varies from 70% - 130% and 65% - 135%

• The midpoint progression between the job grades represents an average increase of 41%

19
Proposed Salary Structure - Implementation - Brazil
BRL BRL
2013 Ranges 2018 Proposed Ranges

Min to Max to Range Mid point Range Mid point


Level Minimum Midpoint Maximum Level Minimum Midpoint Maximum Min to Mid Max to Mid
Mid Mid Spread progression Spread progression

1 11,930 18,350 24,770 65% 135% 108% 1 14,700 21,000 27,300 70% 130% 86%
2 16,200 24,920 33,640 65% 135% 108% 36% 2 20,300 29,000 37,700 70% 130% 86% 38%
3 23,190 35,680 48,180 65% 135% 108% 43% 3 27,300 39,000 50,700 70% 130% 86% 34%
4 34,600 53,240 71,880 65% 135% 108% 49% 4 40,600 58,000 75,400 70% 130% 86% 49%
5 51,540 79,300 107,050 65% 135% 108% 49% 5 58,800 84,000 109,200 70% 130% 86% 45%
6 72,160 111,020 149,870 65% 135% 108% 40% 6 84,000 120,000 156,000 70% 130% 86% 43%
7 95,720 147,270 198,810 65% 135% 108% 33% 7 110,500 170,000 229,500 65% 135% 108% 42%
8 125,180 192,580 259,980 65% 135% 108% 31% 8 146,250 225,000 303,750 65% 135% 108% 32%
9 158,320 243,560 328,810 65% 135% 108% 26% 9 195,000 300,000 405,000 65% 135% 108% 33%
10 202,500 311,530 420,570 65% 135% 108% 28% 10 260,000 400,000 540,000 65% 135% 108% 33%

• The range spread is between 86% to 108%


– range spread of 86% is applied to the lower job levels 1 to 6
– same range spread as previous structure at job levels 7 to 10

• The range spread below and above the midpoint varies from 70% - 130% and 65% - 135%

• The midpoint progression between the job grades represents an average increase of 39%

20
Proposed Salary Structure - Implementation - Mexico
MXN MXN
Current Salary Ranges 2018 Proposed Ranges
Range Mid point Range Mid point
Level Minimum Midpoint Maximum Min to Mid Max to Mid Level Minimum Midpoint Maximum Min to Mid Max to Mid
Spread progression Spread progression
1 62,300 95,700 129,200 65% 135% 107% 1 66,990 95,700 124,410 70% 130% 86%
2 93,000 143,000 193,100 65% 135% 108% 49% 2 100,100 143,000 185,900 70% 130% 86% 49%
3 139,500 214,500 289,600 65% 135% 108% 50% 3 150,150 214,500 278,850 70% 130% 86% 50%
4 195,200 300,300 405,500 65% 135% 108% 40% 4 210,210 300,300 390,390 70% 130% 86% 40%
5 273,400 420,500 567,700 65% 135% 108% 40% 5 294,350 420,500 546,650 70% 130% 86% 40%
6 364,000 560,000 756,000 65% 135% 108% 33% 6 392,000 560,000 728,000 70% 130% 86% 33%
7 503,800 775,000 1,046,300 65% 135% 108% 38% 7 503,994 775,000 1,046,277 65% 135% 108% 38%
8 715,000 1,100,000 1,485,000 65% 135% 108% 42% 8 715,347 1,100,000 1,485,039 65% 135% 108% 42%
9 975,000 1,500,000 2,025,000 65% 135% 108% 36% 9 975,473 1,500,000 2,025,053 65% 135% 108% 36%
10 1,267,500 1,950,000 2,632,500 65% 135% 108% 30% 10 1,268,115 1,950,000 2,632,568 65% 135% 108% 30%

• The midpoints for the proposed salary structure will remain unchanged vs. the current salary ranges

• The range spread is between 86% to 108%,


– range spread of 86% is applied to the lower job levels 1 to 6
– same range spread as previous structure at job levels 7 to 10

• The range spread below and above the midpoint varies from 70%-130% and 65% - 135%

• The midpoint progression between the job grades represents an average increase of 40%

21
Proposed Salary Structure - Implementation - Luxembourg
EUR EUR
Current Salary Ranges 2018 Proposed Ranges

Range Midpoint Range Midpoint


Level Minimum Midpoint Maximum Min to Mid Max to Mid Level Minimum Midpoint Maximum Min to Mid Max to Mid
Spread progression Spread progression

1 23,250 31,000 38,750 75% 125% 67% 1 25,760 32,200 38,640 80% 120% 50%
2 26,400 35,200 44,000 75% 125% 67% 14% 2 29,200 36,500 43,800 80% 120% 50% 13%
3 29,700 39,610 49,510 75% 125% 67% 13% 3 32,800 41,000 49,200 80% 120% 50% 12%
67% 14% 4 35,250 47,000 58,750 75% 125% 67% 15%
4 33,890 45,180 56,480 75% 125%
67% 17% 5 41,250 55,000 68,750 75% 125% 67% 17%
5 39,720 52,950 66,190 75% 125%
67% 16% 6 48,000 64,000 80,000 75% 125% 67% 16%
6 46,090 61,460 76,820 75% 125%
67% 22% 7 54,600 78,000 101,400 70% 130% 86% 22%
7 56,420 75,220 94,030 75% 125%
67% 17% 8 64,400 92,000 119,600 70% 130% 86% 18%
8 66,190 88,250 110,320 75% 125%
67% 17% 9 75,600 108,000 140,400 70% 130% 86% 17%
9 77,540 103,380 129,230 75% 125%
67% 17% 10 88,200 126,000 163,800 70% 130% 86% 17%
10 90,940 121,250 151,560 75% 125%

• The range spread is between 50% to 86%


– standard range spread of 50% is applied to the lower job levels (1 to 3)
– same range spread as previous structure at job levels 4 to 6
– wider range spreads at higher job levels (7 to 10)

• The range spread below and above the midpoint varies from 80%-120%, 75% -125% and 70% - 130%

• The midpoint progression between the job grades represents an average increase of 16%

22
Proposed Salary Structure - Implementation – Austria*
EUR EUR
Current Salary Ranges 2018 Proposed Ranges
Midpoint Range Midpoint
Range
Level Minimum Midpoint Maximum Min to Mid Max to Mid progressio Level Minimum Midpoint Maximum Min to Mid Max to Mid
Spread Spread progression
n
1 1 22,400 28,000 33,600 80% 120% 50%
2 22,980 25,880 32,350 89% 125% 41% 2 24,800 31,000 37,200 80% 120% 50% 11%
3 24,840 28,470 35,590 87% 125% 43% 10% 3 27,200 34,000 40,800 80% 120% 50% 10%
4 27,120 34,160 42,700 79% 125% 57% 20% 4 28,500 38,000 47,500 75% 125% 67% 12%
5 31,990 42,650 53,320 75% 125% 67% 25% 5 34,500 46,000 57,500 75% 125% 67% 21%
6 39,990 53,310 66,640 75% 125% 67% 25% 6 42,750 57,000 71,250 75% 125% 67% 24%
7 50,070 66,760 83,450 75% 125% 67% 25% 7 50,050 71,500 92,950 70% 130% 86% 25%
8 60,170 80,220 100,280 75% 125% 67% 20% 8 58,800 84,000 109,200 70% 130% 86% 17%
9 72,200 96,260 120,330 75% 125% 67% 20% 9 69,300 99,000 128,700 70% 130% 86% 18%
10 85,390 113,850 142,320 75% 125% 67% 18% 10 80,500 115,000 149,500 70% 130% 86% 16%

• The range spread is between 50% to 86%


– standard range spread of 50% is applied to the lower job levels (1 to 3)
– same range spread as previous structure at job levels 5 to 6
– wider range spreads at higher job levels (7 to 10)

• The range spread below and above the midpoint varies from 80%-120%, 75% -125% and 70% - 130%

• The midpoint progression between the job grades represents an average increase of 17%

• (*) Range Minimums for job levels 1, 2, 3 and 4 to be adjusted as per Minimum Wage regulations

23
Proposed Salary Structure - Implementation - Czech Republic
CZK CZK
Current Salary Ranges 2018 Proposed Ranges

Range Midpoint Range Midpoint


Level Minimum Midpoint Maximum Min to Mid Max to Mid Level Minimum Midpoint Maximum Min to Mid Max to Mid
Spread progression Spread progression

1 206,240 257,800 309,360 80% 120% 50%


1 167,570 257,800 348,030 65% 135% 108%
2 226,864 283,580 340,296 80% 120% 50% 10%
2 184,330 283,580 382,840 65% 135% 108% 10%
3 249,552 311,940 374,328 80% 120% 50% 10%
3 202,770 311,940 421,120 65% 135% 108% 10%
4 272,393 363,190 453,988 75% 125% 67% 16%
4 223,080 343,190 463,310 65% 135% 108% 10% 361,383 481,844 602,305 75% 125% 67% 33%
5
5 256,590 394,750 532,920 65% 135% 108% 15% 414,294 552,392 690,490 75% 125% 67% 15%
6
6 307,940 473,740 639,550 65% 135% 108% 20% 7 529,410 756,300 983,190 70% 130% 86% 37%
7 400,370 615,940 831,520 65% 135% 108% 30% 8 676,750 966,785 1,256,821 70% 130% 86% 28%
8 520,480 800,730 1,080,990 65% 135% 108% 30% 9 770,000 1,100,000 1,430,000 70% 130% 86% 14%
9 10 875,000 1,250,000 1,625,000 70% 130% 86% 14%
10

• The range spread is between 50% to 86%


– standard range spread of 50% is applied to the lower job levels (1 to 3)
– wider range spreads at higher job levels (4 to 10)
– Added salary ranges for levels 9 and 10

• The range spread below and above the midpoint varies from 80%-120%, 75% -125% and 70% - 130%

• The midpoint progression between the job grades represents an average increase of 20%

24
Proposed Salary Structure - Implementation - Japan

JPY
JPY
2013 Ranges
2018 Proposed Ranges
Range Mid point
Level Minimum Midpoint Maximum Min to Mid Max to Mid Range Mid point
Spread progression Level Minimum Midpoint Maximum Min to Mid Max to Mid
Spread progression
1 2,415,800 3,221,000 4,026,300 75% 125% 67%
1 2,240,000 3,200,000 4,160,000 70% 130% 86%
2 2,893,500 3,858,000 4,822,500 75% 125% 67% 20%
2 2,730,000 3,900,000 5,070,000 70% 130% 86% 22%
3 3,465,000 4,620,000 5,775,000 75% 125% 67% 20%
3 3,220,000 4,600,000 5,980,000 70% 130% 86% 18%
4 4,170,000 5,560,000 6,950,000 75% 125% 67% 20%
4 3,920,000 5,600,000 7,280,000 70% 130% 86% 22%
5 5,017,500 6,690,000 8,362,500 75% 125% 67% 20%
5 4,690,000 6,700,000 8,710,000 70% 130% 86% 20%
6 6,037,500 8,050,000 10,062,500 75% 125% 67% 20% 6 5,670,000 8,100,000 10,530,000 70% 130% 86% 21%
7 7,267,500 9,690,000 12,112,500 75% 125% 67% 20% 7 6,305,000 9,700,000 13,095,000 65% 135% 108% 20%
8 8,745,000 11,660,000 14,575,000 75% 125% 67% 20% 8 7,605,000 11,700,000 15,795,000 65% 135% 108% 21%
9 10,522,500 14,030,000 17,537,500 75% 125% 67% 20% 9 9,100,000 14,000,000 18,900,000 65% 135% 108% 20%
10 12,652,500 16,870,000 21,087,500 75% 125% 67% 20% 10 10,985,000 16,900,000 22,815,000 65% 135% 108% 21%

• The range spread is between 86% to 108%


– range spread of 86% is applied to the lower job levels 1 to 6
– range spread of 108% is applied to job levels 7 to 10

• The range spread below and above the midpoint varies from 70% - 130% and 65% - 135%

• The midpoint progression between the job grades represents an average increase of 20%

25

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