The pay scale structure covers pay aspects which are dependent, for example, on regional, industrial-specific, financial, and time-related factors. It also takes into account the differences between industrial workers and salaried employee's, as well as circumstances related to pay scale changes.

Having established the organization structure at the CCT, it is now necessary to set up the pay scale structure. There are four elements related to the pay scale structure:

• Pay scale type
• Pay scale area
• Pay scale group
• Pay scale level

Some companies do not have a strict pay scale structure. In such a case, salaries and wages can be entered in infotype Basic Pay (0008). For such an instance, it is therefore not necessary to set up the pay scale structure in the SAP System.