Start with the role you are actually hiring.
A salary band is only meaningful when the role has a clear level, scope and expected outcome. Confirm whether the hire is an individual contributor, team manager, functional lead or a blend of responsibilities.
Then write the work in enough detail to distinguish the role from the next level up and down. Salary should follow the responsibility the person will carry, not just the title printed on the organisation chart.
The minimum qualifying salary answers whether the candidate may pass the first EP gate. It does not tell you what the role is worth or what a competitive offer should be.
Use more than one reference point.
Build a market view from sources that match the role, sector, location and seniority. Public salary data is useful, but it can mix different levels and package structures if it is not read carefully.
Compare like with like: responsibilities, level, technical depth and decision-making scope.
Check whether the role sits in a sector with different salary patterns or EP benchmarks.
Use a median, lower and upper reference rather than treating one salary as the market truth.
Use current searches, accepted offers and candidate conversations to test whether the band is credible now.
Keep a short note on the sources and assumptions behind the band. It helps the hiring team explain why the offer sits where it does and when the range should be reviewed.
Protect internal equity.
A market-competitive offer can still create a problem if it sits above experienced team members doing comparable work without a clear reason. Review the proposed band against existing grades, scope and progression.
Grade alignment
Map the role to the internal grade or level before deciding the external title.
Compression risk
Check whether a new hire would sit too close to, or above, a more experienced colleague.
Scarcity premium
Document when a premium is justified by scarce skills, urgency or a hard-to-fill market.
Progression
Make sure the band leaves room for performance growth and the next level.
Separate the EP floor from COMPASS C1.
EP planning has two salary questions. First, does the fixed monthly salary meet the current EP qualifying salary for the candidate's age and sector? Second, where does that salary sit against the sector and age benchmark under COMPASS C1?
Qualifying salary
The minimum eligibility bar. A candidate below it is not eligible for an EP regardless of COMPASS points.
65th percentile
Meeting or exceeding the sector benchmark is the starting point for C1 points.
90th percentile
A higher salary position may earn more C1 points under the current framework.
These figures are age-progressive and updated by MOM. Use MOM's current C1 salary benchmarks and the EP eligibility page before approving a live band.
Show the package honestly.
Candidates compare the whole offer. Keep fixed monthly salary separate from variable or conditional amounts, and make sure the offer, advertisement and application use the same salary logic.
Base
Set the fixed monthly or annual salary range for the level.
Bonus
Explain target or discretionary variable pay without presenting it as guaranteed.
Benefits
List benefits, allowances, insurance and meaningful support.
Equity
State whether equity exists, when it vests and what assumptions apply.
Review
Explain the next salary review or progression point where relevant.
Publish a range you can stand behind.
If the role is advertised, the salary range should be clear, specific and consistent with the actual offer. A broad range that does not reflect the hiring plan creates a poor candidate experience and may create FCF issues for an EP application.
- Do not hide the salary. Candidates should be able to understand the offer before applying.
- Do not make the range meaningless. A maximum far above the real hiring budget does not create flexibility; it creates confusion.
- Do not change the role silently. If the occupation, salary or vacancy changes, review the advertisement and FCF position.
- Do not use total package to obscure fixed salary. Keep the fixed monthly salary clear for EP planning.
Read the FCF guide for the current advertising requirements and connect the band to the recruiter briefing before the search begins.
The salary-band template.
- Role and level: title, grade, reporting line and decision scope.
- Market reference: sources, date checked, sector and comparable roles.
- Base range: minimum, target and maximum fixed monthly salary.
- EP check: candidate age, sector, qualifying salary and current C1 benchmark.
- Internal equity: comparable grades, existing salaries and compression risk.
- Total package: bonus, allowances, benefits and equity assumptions.
- Review date: when the range or benchmark should be checked again.
The MOM framework and market evidence move at different speeds. Keep the review interval clear so an old band does not quietly become the next hiring constraint.
FAQ
Is the EP qualifying salary the same as the COMPASS C1 benchmark?
No. The EP qualifying salary is the Stage 1 minimum. C1 compares fixed monthly salary against sector and age benchmarks for COMPASS points.
Do salary bands need to increase with candidate age?
The applicable EP qualifying salary and C1 benchmark are age-progressive. Check the current MOM tables for the candidate and application period.
Should we set the band just above the EP minimum?
Not automatically. The role's market level, internal equity, candidate experience and COMPASS position should inform the band. The minimum is not a market benchmark.
How often should salary bands be reviewed?
Review them at least when MOM updates the applicable benchmarks, and more often for scarce or fast-moving roles. AIS's three-month editorial review interval is a useful content check, not a substitute for the employer's compensation review.
References.
This guide is general information for employers. Salary thresholds, C1 benchmarks and COMPASS rules can change.