PAY-SETTING POLICY
FEDERAL CIVILIAN EMPLOYEE PAY PROCESS
PAY-SETTING DIRECTIVES
PRIMARY PAY-SETTING RULES
WHEN YOU SET PAY ON YOUR JOB

LESSON 1: The General Schedule System, New Appointments, Reinstatements, and Transfers and Conversions

• THE GENERAL SCHEDULE SYSTEM
  • The GS Structure
  • GS Pay Schedules
  • Nationwide Pay Schedule
  • Locality Pay Schedules
  • Special Salary Rate Schedules
  • Former PMRS Employees
• NEW APPOINTMENTS
  • Minimum Rate
  • Locality Adjustments
  • Higher Than the Minimum Step
  • Locality Adjustment
• REINSTATEMENTS
  • Prior Separation Voluntary
  • Minimum Step
  • GS Maximum Payable Rate Rule
  • OPM Regulations on the GS Maximum Payable Rate Rule
  • Highest Previous Rate (HPR)
  • Computing the GS Maximum Payable Rate
  • Prior Separation Involuntary
  • Reemployment Priority List
  • Agency Directives on Reemployment from the Reemployment Priority List
  • GS Maximum Payable Rate Rule
  • Mandatory Restoration
  • Governmentwide Minimum Requirement for Mandatory Restoration
  • Transfers and Conversions With No Change in Grade
  • No Change in Pay
  • GS Maximum Payable Rate Rule
  • Local Directives on Transfers Between Federal Agencies
  • Termination of GM Coverage
  • Locality Adjustments

LESSON 2

• REASSIGNMENTS
  • No Change in Pay
  • GS Maximum Payable Rate Rule
  • Changes Between Regular and Special Salary Rate Schedules
  • Termination of GM Coverage
  • Locality Adjustments
• PROMOTIONS
  • Governmentwide GS Mandatory Promotion Rule
  • GS Maximum Payable Rate Rule
  • Changes Between Regular and Special Salary Rate Schedules
  • Regular Rate to Special Salary Rate
  • Special Salary Rate to Regular Rate
  • Promotions Under Locality Pay Schedules

LESSON 3: Changes to Lower Grade

• CHANGES TO LOWER GRADE
  • Voluntary Changes to Lower Grade
  • Local Directives for Voluntary CLGs
  • Pay Retention
  • GS Maximum Payable Rate Rule
  • After-Temporary-Promotion Requirement
  • Termination of GM coverage
  • Locality Adjustments
  • Involuntary Changes to Lower Grade
  • Employee at Fault (Personal Cause)
  • GS Maximum Payable Rate Rule
  • Locality Adjustments
  • Employee Not at Fault
  • Grade and Pay Retention
  • GS Maximum Payable Rate Rule
  • Supervisory or Managerial Probationary Period
  • Locality Adjustments
• GRADE AND PAY RETENTION
  • Grade Retention
  • Grade Retention Mandatory
  • Grade Retention Optional
  • Entitlement
  • Pay Increases
  • Termination of Grade Retention
  • Pay Retention
  • Pay Retention Mandatory
  • Pay Retention Optional
  • Entitlement
  • Promotions
  • Termination of Pay Retention
  • Subsequent Changes and Further Entitlements

LESSON 4: Pay Changes and Severance Pay

• WITHIN-GRADE INCREASES
  • Basic Requirements
  • Permanent Position
  • Waiting Period
  • When a Waiting Period Begins
  • Waiting Periods for Full-Time or Part-Time Work Schedules
  • Waiting Periods for Intermittent Work Schedules
  • Creditable Service
  • Nonpay Status
  • Determining Waiting Period Completion Dates
  • Equivalent Increase
  • Increases Not Considered Equivalent Increases
  • Several Increases
  • Date of Last Equivalent Increase
  • Acceptable Level of Competence (ALOC)
  • Calculating WGI's for Former PMRS Employees
  • Simultaneous Pay Actions
• QUALITY STEP INCREASES
• NATIONWIDE PAY ADJUSTMENTS
• INTERIM GEOGRAPHIC ADJUSTMENTS
  • Adjusted Rates of Pay
• SPECIAL SALARY RATE ADJUSTMENTS
  • New and Revised Special Salary Rate Schedules
  • Discontinued Special Salary Rate Schedules
• SEVERANCE PAY

LESSON 5: Changes Between Pay Systems

• MOVEMENT FROM THE FWS TO THE GS PAY SYSTEM
  • Setting Pay on Changes From FWS to GS
  • Identifying the Action Taking Place
  • Reassignments
  • Promotions
  • Changes to Lower Grade
  • Changes in Pay Systems and Grade and Pay Retention
  • Eligibility Requirements
  • Grade and Pay Retention Entitlements
  • Termination of Grade or Pay Retention
  • Grade Retention
  • Pay Retention
• SETTING PAY FOR FORMER USPS EMPLOYEES
  • GS Maximum Payable Rate
  • Basic Pay
  • HPR Requirements
  • GS Maximum Payable Rate

• NONFOREIGN AREA ALLOWANCES AND DIFFERENTIALS
  • Eligibility
  • Requirements Affecting Payment
  • Prerequisite for Payment
  • Maximum Additional Pay
  • Payment Period
  • Changes Between Pay Systems
• SUPERVISORY DIFFERENTIALS
  • Eligibility
  • Amount of Supervisory Differential
• FEDERAL PHYSICIANS' COMPARABILITY ALLOWANCE PROGRAM
  • Eligibility
  • Amount of Allowance
  • Maximum Allowance
• RETENTION ALLOWANCE
  • Eligibility
  • Payment of Allowance
  • Termination of Allowance
• RECRUITMENT AND RELOCATION BONUSES
  • Eligibility for Recruitment Bonuses
  • Eligibility for Relocation Bonuses
  • Payment of Bonuses
  • Service Agreements
• BACK PAY
  • Appropriate Authority
  • Unjustified or Unwarranted Personnel Action
  • Back Pay Computation
  • Entitlement
  • Pay Increases
  • Allowances and Differentials
  • Reductions in Back Pay
  • Not Ready, Willing and Able
  • Not Available
  • Other Paid Employment Interest Payable
• GLOSSARY
• APPENDIX
  • Table for Determining Completion of
  • Waiting Periods for Pay and Leave Purposes