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A pay range is the minimum and maximum pay an employer expects to offer for a role. It usually covers base salary or hourly rate, and many US states and cities now require a good faith range in job ads or when a candidate asks.
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The minimum and maximum pay for a role. Many US states now require it in job ads.
Employers build pay ranges from market data, internal pay bands and budget. A range has a floor, a ceiling and often a midpoint where most hires land. Where a new hire falls usually depends on experience, skills, location and internal equity with people already in the team.
In job ads the range must be honest. Pay transparency laws in places such as New York, California, Colorado, Washington and Illinois generally ask for a range the employer genuinely believes it would pay, not a range stretched wide to look attractive. Some laws also ask for a description of benefits or other pay, such as commission or bonus. Rules differ by location and change often, so check the law where the job and the candidate are. This is not legal advice.
For recruiters, the range is a screening tool as much as a legal box. Sharing it early filters out people who would never accept and saves everyone a wasted interview loop.
Offers fall apart most often over money discovered too late. A clear, accurate pay range lets you qualify candidates on the first call, set hiring manager expectations at intake and stay on the right side of pay transparency laws. It also builds trust, because candidates increasingly skip ads that hide pay.
A hiring manager wants a senior recruiter at up to 95,000 dollars. Market data from the team's compensation tool suggests similar roles nearby pay 90,000 to 115,000. The recruiter shows this at the intake meeting, the budget is raised to a range of 92,000 to 108,000, and the ad goes live with that range. The first week brings fewer applicants but far more who fit.
It depends on where the job is and sometimes where the candidate is. Several US states and cities require a range in postings, and the EU Pay Transparency Directive brings pay disclosure duties for employers in member states. Check the current rule for each location, since requirements keep changing. This is not legal advice.
A pay band is the internal structure an employer uses for a level or family of jobs. A pay range in an ad is the part of that band the employer realistically expects to pay a new hire for this specific role.
Many employers allow it with approval, but it can create equity problems and may raise questions under transparency laws if the posted range was not genuine. If the right candidate needs more, revisit the range and repost if needed.
Written by recruiters at Work Insiders. Part of the recruiting and HR tech glossary. Updated October 2026.