Salary scale and grade is a step within a compensation system that defines the amount of pay/salary an employee will/should receive. The pay grade is generally defined by the level of the responsibilities performed within the job description of the position and the length of time the employee has performed the job. Occasionally, the horizontal axis is related to the performance of the employee as well as the length of the employee service. The vertical steps in a pay grade chart refer to the level of the responsibilities defined by the job requirements. Pay grades provide a framework for compensation by defining the amount of pay available at each step in the employment process.