Yes, I also interpret it similarly, but also see it used when a task involves engaging with company politics or strategy that is organizationally above where th

Yes, I also interpret it similarly, but also see it used when a task involves engaging with company politics or strategy that is organizationally above where the person is or where it feels inaccessible. Like if you are asked to do something and it requires help from some other group, and they say no, you might say that resolving the issue is above your pay grade... even though you _could_ hassle those other people to get the work done. In that sense saying "that's above my pay grade" can indicate you aren't prepared to hustle within the corporate structure.