The minimum is the lower boundary of a salary range, the midpoint is the central reference value, and the maximum is the upper boundary. Employers use these values to organise hiring pay, progression and compensation governance. They do not automatically describe junior, fully competent and expert employees unless the employer has deliberately defined the structure that way. Directive (EU) 2023/970 does not prescribe how minimums, midpoints or maximums must be calculated. What matters legally is that the pay structure and criteria used to determine individual pay and progression are objective and gender neutral.
Jurisdiction: European Union
The Minimum Is the Lower Boundary of the Range
The salary minimum is the lowest value the employer intends to pay for jobs covered by a particular range under normal conditions. It is not necessarily the amount every new employee should receive. A candidate with substantial relevant experience may enter above the minimum where the employer's objective placement criteria support that decision. Employers should monitor salaries below the minimum because they can indicate an outdated structure, transition issue or inconsistent pay practice. If exceptions are permitted, the policy should explain when they can occur, who approves them and how they are reviewed.
The Midpoint Is a Reference Value, Not Automatically a Promise
The midpoint is usually the central reference point of the salary range. Some employers align it to a market reference rate or to the pay they expect for a fully proficient employee, but those meanings are policy choices rather than universal definitions. A worker does not automatically become entitled to the midpoint merely because they have spent a particular number of years in the job unless the employer's policy, collective agreement or national law creates such a rule. Employers should therefore define what the midpoint represents before using it in pay communication, compa-ratio analysis or progression decisions.
The Maximum Is the Upper Boundary of the Intended Range
The salary maximum is the highest value within the normal range for the job, grade or level. Employees may approach the maximum as they build capability, performance or experience where those factors are part of the employer's progression model. Pay above maximum can occur for historical, retention or transition reasons, but repeated above-range salaries may signal that the range is outdated or that job classification needs review. Employers should govern above-maximum cases rather than treating them as invisible exceptions, because they can affect internal equity and later pay-gap analysis.
Position Within the Range Needs an Objective Explanation
A range does not by itself explain why one employee earns 85 percent of midpoint and another earns 110 percent. The employer needs criteria for individual placement and progression. Relevant experience, acquired skills, sustained performance, increased responsibility or another legitimate factor may be used where it is objective, gender neutral and consistently applied. Article 6 of Directive (EU) 2023/970 requires employers to make easily accessible the criteria used to determine pay, pay levels and pay progression. This makes the explanation behind range position more important than simply publishing the numbers.
Compa-Ratio and Range Penetration Answer Different Questions
Compensation teams often use additional metrics to understand where an employee sits within a range. Compa-ratio generally compares salary with the midpoint, while range penetration generally measures how far salary has moved from minimum toward maximum. These metrics can support analysis, but they are not legal tests and they do not explain why the employee occupies that position. Two employees can have different compa-ratios for legitimate reasons or for reasons that require investigation. The metric should therefore be combined with the employer's documented pay criteria and relevant employee history.
Range Values Should Be Reviewed Together, Not in Isolation
Changing only one part of the range can distort the structure. If the midpoint is increased but the minimum and maximum are not reviewed, the original range width and progression design may no longer make sense. Employers should review market movement, internal equity, employee distribution, hiring outcomes and the number of employees outside the range when updating values. The effective date and methodology should be documented. That record helps managers apply the structure consistently and allows future pay-equity reviews to reconstruct which range values were in force when a pay decision was made.
Frequently Asked Questions
Does the midpoint mean the average salary?
Not necessarily. The midpoint is a range-design reference value. It may be tied to a market rate or another compensation policy, while the actual average salary of employees in the range can be different.
Should every new hire start at the salary minimum?
No universal rule requires that. Entry pay should follow the employer's documented, objective and gender-neutral placement criteria and any applicable national or collective-agreement rules.
Can an employee be paid above the maximum?
It can occur, but employers should define how above-range cases are handled and review whether repeated exceptions indicate that the range or job classification needs adjustment.
Related Guides
Official Sources
Requirements and practices differ by jurisdiction and organisation. Check current local law, official guidance and professional advice for a specific situation.