Concept of Basic Salary Determination: Age-Based Salary and Length of Service Salary

The approach to determining the base salary is strongly linked to the concept of the grading system.

The age-based pay and length-of-service pay are concepts associated with the functional grade system within the grading system, and they determine the base salary based on age and years of service. Since age-based pay and length-of-service pay are determined by the accumulation of age and years of service, regardless of performance evaluations, there is no need to consider a linkage with the evaluation system. One advantage of having age-based pay and length-of-service pay is that it contributes to a more stable living situation, which leads to long-term talent retention. A disadvantage is that salaries increase without any effort, and regardless of performance, age-based pay and length-of-service pay do not increase, making it difficult to motivate employees. ▼If you want to know more about the concept of determining base salary▼ Please download the "Complete Guide to HRBrain's Personnel Evaluation System Design Manual" from the link below!

Personnel and Labor