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+<p align="justify"> An Employee Grade is a grouping of the employees with similar positions or values in order to assign compensation rates and salary structures.</p>
+
+<p align="justify"> StrideERP allows you to configure Employee Grades, helping you to easily categorize employees based on seniority or any other criteria.</p>
+
+<p align="justify"> Employee Grade also helps you fetch Employee records in bulk based on their grades while processing payroll, allocating leaves, etc.</p>
+
+<p align="justify"> <b> To access Employee Grade, go to:</b></p>
+
+<blockquote>People > Configuration > Settings > Employee > Employee Grade </blockquote>
+
+<h2> 1. Prerequisites </h2>
+<p align="justify"> Before creating an Employee Grade, it is advisable you create the following documents:</p>
+<ul>
+<li><a href="https://docs.gostride.io/people/productivity/leaves/leave-policy">Leave Policy </a></li>
+<li><a href="https://docs.gostride.io/payroll/salary-structure">Salary Structure </a> </li>
+</ul>
+
+<h2> 2. How to create an Employee Grade </h2>
+<ol>
+<li>Go to Employee Grade list, click on New.</li>
+<li>Enter the Name of the Employee Grade.</li>
+<li>Enter the Default Leave Policy and Default Salary Structure for that Grade.</li>
+<li>Save.</li>
+</ol>
+<p align="justify"> Shown below are the different Employee Grades created.</p>
+
+<img src="/files/employee grade.png">
+