Salary Structure: Creating Pay Consistency

Minimum Wages Act, Chap. 88:04 · Industrial Relations Act, Chap. 88:01

Why This Matters

A salary structure is the framework that translates job evaluation scores into pay ranges. Without it, each salary decision is made in isolation, and isolated decisions accumulate into a payroll that is internally inconsistent, difficult to defend, and expensive to correct. With a salary structure in place, every role sits within a defined band that sets the minimum, midpoint, and maximum pay for that level. Managers know what they can offer. Employees understand how their pay relates to others in the organisation. And the business has a mechanism for managing payroll costs over time rather than reacting to them.

A salary structure also provides the legal baseline for compliance. Under the Minimum Wages Act (Chap. 88:04), no employee may be paid below the current national minimum wage of TT$20.50 per hour, effective 1 January 2024. At a standard 40-hour working week, this equates to approximately TT$3,553 per month. Any salary band minimum that falls below this threshold is non-compliant, regardless of the terms agreed with the employee.

What a Salary Structure Contains

A well-designed salary structure defines three reference points for each level within the business.

The minimum represents the lowest pay the business will offer for a role at that level, the entry point for a newly appointed employee with the required qualifications but limited relevant experience. The minimum must never fall below the statutory minimum wage.

The midpoint represents the market-competitive rate for a fully competent employee performing the role at the expected standard. It is the anchor of the band and the reference point for benchmarking against the external market.

The maximum represents the ceiling for that salary band, the rate at which an employee is considered fully paid for the role. Pay above the midpoint should reflect sustained high performance or exceptional experience; pay at the maximum should be reserved for the most senior and experienced employees at that level.

The gap between the minimum and maximum within a band, known as the band spread, is typically between 50% and 80% for most organisations. A band spread that is too narrow offers little room for merit progression; one that is too wide creates ambiguity about what performance is actually being rewarded.

A Reference Salary Structure for T&T SMEs

The following structure provides an illustrative framework. Salary ranges should be benchmarked against the external market annually and adjusted to reflect changes in the minimum wage, cost of living, and industry practice.

Level	Typical Roles	Monthly Salary Range
Entry	Administrative Assistant, Clerk, Junior Technician	TT$3,600 – TT$5,500
Mid	Supervisor, Senior Technician, Coordinator	TT$6,000 – TT$9,500
Senior	Manager, Department Head, Senior Specialist	TT$10,000 – TT$18,000
Executive	Director, General Manager, C-Suite	TT$18,000 and above

Note: All band minimums reflect compliance with the current minimum wage of TT$20.50 per hour (effective 1 January 2024). Ranges should be reviewed annually and adjusted as the minimum wage changes.

Applying the Structure

Once the salary structure is in place, every hire and every pay review should be positioned within it. A new employee with the minimum required qualifications should enter at or near the band minimum. An employee with directly relevant experience may enter above the minimum but should not exceed the midpoint at appointment. Movement through the band over time should be tied to performance, and movement from one band to the next should require a change in role or a formal promotion.

Practical Insight: Employer Risk One of the most common and costly compensation errors in SMEs is paying above the maximum of a salary band, informally, without documentation, and without any change in role or responsibility. This typically occurs when a key employee signals they are considering leaving and the employer responds with an ad hoc pay increase. The immediate problem is resolved, but the business has now created an outlier on its payroll, an employee paid above the structure, which sets a precedent, creates inequity with peers, and makes the next compensation review significantly more complicated. The structured approach is to address retention risk through the full compensation package, including non-monetary elements, before it reaches the point where an off-band increase is the only available response.

Template – Salary Band Record

Use this template to document the salary band for each role. It should be maintained as part of the compensation framework and updated at each annual review cycle.

Job Title
Job Level	Entry □ Mid □ Senior □ Executive □
Job Evaluation Score
Band Minimum (TT$)
Band Midpoint (TT$)
Band Maximum (TT$)
Current Employee in Role
Current Salary (TT$)
Position in Band (% of midpoint)
Last Review Date
Next Review Date