Salary Percentile
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A measure indicating the percentage of salaries in a distribution that fall at or below a given value, used to understand where a specific salary ranks relative to peers.
## Salary Percentile
A percentile indicates the relative standing of a salary within a distribution. The 75th percentile means 75% of salaries are at or below that level.
### Common Percentiles
| Percentile | Meaning | Use |
|-----------|---------|-----|
| P10 | Bottom 10% | Entry-level floor |
| P25 | Lower quartile | Below-market pay |
| P50 | Median (middle) | Market rate |
| P75 | Upper quartile | Above-market / premium |
| P90 | Top 10% | Exceptional / senior |
### How They're Used
Companies set compensation strategies by targeting specific percentiles:
- **P50 (market median)**: Most common target.
- **P60–P75**: Companies competing aggressively for talent.
- **P25–P40**: Budget-constrained organizations.
### Data Sources
Salary percentile data comes from compensation surveys by firms like Mercer, Radford, Aon, and Willis Towers Watson, as well as self-reported platforms like Levels.fyi, Glassdoor, and Payscale.