1. What Is Salary Range Penetration?

Salary range penetration measures where an individual's salary falls within a defined salary range. It's expressed as a percentage that indicates how far the salary has progressed through the range from minimum to maximum.

2. How Does The Calculator Work?

The calculator uses the penetration formula:

Where:

• \( \text{Salary} \) — Current salary amount in PHP
• \( \text{Range Min} \) — Minimum of the salary range in PHP
• \( \text{Range Max} \) — Maximum of the salary range in PHP

Explanation: The formula calculates the percentage position of the current salary within the defined salary range, where 0% represents the minimum and 100% represents the maximum.

3. Importance Of Salary Range Analysis

Details: Salary range penetration is crucial for compensation analysis, salary benchmarking, and determining appropriate salary adjustments. It helps organizations maintain internal equity and competitive positioning in the Philippine job market.

4. Using The Calculator

Tips: Enter salary, range minimum, and range maximum in Philippine Pesos (PHP). All values must be positive numbers, and the range maximum must be greater than the range minimum.

5. Frequently Asked Questions (FAQ)

Q1: What does a 50% penetration mean?
A: A 50% penetration indicates the salary is exactly at the midpoint of the salary range, halfway between the minimum and maximum.

Q2: What is considered a good penetration percentage?
A: Typically, 50-75% is considered healthy. Below 50% may indicate underpayment, while above 75% may suggest limited growth potential within the range.

Q3: How often should penetration be calculated?
A: It should be reviewed annually during salary reviews or when making compensation decisions for hiring, promotions, or adjustments.

Q4: Does this work for all job levels?
A: Yes, but each position should have its own appropriate salary range based on market data and internal equity considerations.

Q5: What if the salary is below or above the range?
A: Below-range salaries yield negative percentages, while above-range salaries exceed 100%. Both situations typically require compensation review and adjustment.