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Pay Grade is defined as the position of compensation of jobs especially when it concerns certain authority or responsibility. It is a level which an employee holds on the scale of remunerations. It can also refer to the method of categorizing different types of work profiles into different groups that have some relative pay scale. For example managerial pay grade, superior pay grade, executive pay grade, etc. Generally, in government-based jobs, compensation is defined based on pay grades.
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