A pay structure is a system that outlines how employees are compensated within an organization. It typically includes various levels of pay, such as base salary, bonuses, and benefits, and is designed to ensure fairness and equity among employees. Pay structures can vary based on factors like job role, experience, and market conditions. Organizations often use pay structures to attract and retain talent while maintaining budgetary control. Common types of pay structures include salary bands, pay grades, and merit-based pay. These structures help employers establish clear guidelines for compensation and promote transparency in the workplace.