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Pay and benefits

Tariff grid

Definition

A table of rates by grade and position, setting the pay per unit of time.

A tariff grid is an ordered list of rates: position or grade on one side, pay per hour, shift or month on the other. Unlike grades, which set the relative value of positions, the grid sets the specific amounts that reach the calculation.

Why a grid is needed where grades already exist

A grade answers "how much more significant is this position than that one"; the grid answers "how much exactly do we pay". Neither works well alone: grades without amounts stay theoretical, and a grid without grades becomes a historical list of rates whose logic nobody remembers.

The grid's practical value is that it makes the payroll budget computable. Multiplying rates by the staffing table gives the planned fund, and any change — indexation, a new site, a grade rise for a group — can be costed before it is decided.

What goes into building one

A grid is not a list of numbers but a handful of decisions that have to agree with each other.

  • The unit of tariffing: hour, shift or month. For shift workers an hourly rate is usually more accurate.
  • The step between grades: too small and nobody is motivated to move up, too large and moving up becomes a rare event.
  • A range within a grade, where one is provided: it lets pay grow without a formal promotion.
  • A link to the market: the grid is benchmarked on key positions and revised, otherwise it goes stale quietly.

How this works in Verifix

In Verifix Career the grid is part of the career model: position, grade, rate and the requirements for moving up sit together, so the employee has not only an amount but the condition for changing it.

The same rate is used directly in the calculation: hours from the timesheet are multiplied by the tariff from the grid, then allowances and deductions are applied. A grade rise automatically changes the next period's calculation, with no manual edit in accounting.

In short

A grade says how much more significant one position is than another; a tariff grid says how much you actually pay. Without the second the first stays theory; without the first the second is just history.

See how this works

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