A1: Within-grade increases (WGIs) or step increases are periodic increases in a General Schedule (GS) employee's rate of basic pay from one step of the grade of his or her position to the next higher step of that grade. For WGI purposes, an employee's rate of basic pay is the rate of pay fixed by law or administrative action for the position held by the employee before any deductions and exclusive of additional pay of any kind.

(Note: Employees designated as "GM" whose rate of basic pay is less than the maximum rate of their grade also may receive WGIs. See 5 CFR part 531, subpart D, for additional information.)

A2: See the fact sheet on General Schedule Within-Grade Increases for the required waiting periods for advancement to the next higher step of a GS grade for employees with a scheduled tour of duty. (See 5 CFR 531.405(a)(2) for the required waiting periods for employees without a scheduled tour of duty.)

A WGI waiting period begins upon (1) first appointment in the Federal service, (2) receiving an "equivalent increase," or (3) after a period of nonpay status and/or a break in service in excess of 52 calendar weeks.

A3: WGIs apply only to GS employees occupying permanent positions. "Permanent position" is defined in 5 CFR 531.403 as a position filled by an employee whose appointment is not designated as temporary and does not have a definite time limitation of one year or less. "Permanent position" includes a position to which an employee is promoted on a temporary or term basis for at least one year. The term does not include a position filled by an employee whose appointment is limited to one year or less and subsequently extended so that the total time of the appointment exceeds one year.

A4: Civilian employment in any branch of the Federal Government (executive, legislative, or judicial) or with a Government corporation is creditable service in the computation of a waiting period. Service credit is given for periods of annual, sick, and other leave with pay and service under a temporary or term appointment. See 5 CFR 531.406 for special rules regarding the crediting of military service, time in a nonpay status, time during which an employee receives injury compensation, and certain other periods of service.

A5: An "equivalent increase" is considered to occur at the time of any of the following personnel actions:

• A within-grade increase, excluding (1) a quality step increase granted under 5 CFR part 531, subpart E, or (2) an interim WGI if that increase is later terminated under 5 CFR 531.414;

• A promotion (permanent or temporary) to a higher grade, including the promotion of an employee receiving a retained rate under 5 CFR 359.705 or 5 CFR part 536 that does not result in a pay increase, but excluding (1) a temporary promotion if the employee is returned to the grade and step from which promoted (before any adjustment in the step (or rate) based on credit for service during the temporary promotion, as provided in 5 CFR 531.215(c)), or (2) a promotion to a supervisory or managerial position when the employee does not satisfactorily complete a probationary period established under 5 U.S.C. 3321(a)(2) and is returned to a position at the lower grade and step or rate held by the employee before placement (before any adjustment in the step or rate based on credit for service during the probationary period, as provided in 5 CFR 531.215[d]);

• Application of the maximum payable rate rule in 5 CFR 531.221 that results in a higher step rate within the employee's GS grade (or an increase for a GM employee to the next higher rate within the grade), except for application of that rule in a demotion to the extent that the employee's rate of basic pay after demotion does not exceed the lowest step rate that equals or exceeds the employee's rate of basic pay immediately before the demotion;

• Application of the superior qualifications and special needs pay-setting authority in 5 CFR 531.212 that results in a higher step rate within the employee's GS grade (or an increase for a GM employee to the next higher rate within the grade); or

• Application of the qualifications pay authority in 5 U.S.C. 9814 to an employee of the National Aeronautics and Space Administration, when the employee fufills the one-year service requirement in the position for which qualification pay was received or in a successor position.

For information on equivalent increases for non-GS employees who move to the GS pay system, see Q10, which includes an example for an employee moving to the GS pay system from the Department of Defense (DoD) National Security Personnel System (NSPS).

A6: A WGI is effective on the first day of the first pay period beginning on or after the completion of the required waiting period. (5 U.S.C. 5335 and 5 CFR 531.412.)

A7: A QSI is a faster-than-normal WGI used to reward employees at any GS grade level who display high quality performance. To be eligible for a QSI, employees must:

• be below step 10 of their grade level;

• have received the highest rating available under their performance appraisal system;

• have demonstrated sustained performance of high quality; and

• have not received a QSI within the preceding 52 consecutive calendar weeks.

A QSI does not affect the timing of an employee's next regular WGI unless the QSI places the employee in step 4 or step 7 of his or her grade. In these cases, the employee becomes subject to the full waiting period for the new step--i.e., 104 weeks or 156 weeks, respectively--and the time an employee has already waited counts towards the next increase. The employee receives the full benefit of receiving a WGI at an earlier date and has not lost any time creditable towards his or her next WGI.

See 5 U.S.C. 5336, 5 CFR part 531, subpart E, and http://www.opm.gov/perform/articles/1999/apr99-7.asp for additional information on QSIs.

A8: Yes. As long as the employee is converted to a permanent position without returning to the lower grade, the time spent on a temporary promotion is considered creditable service in the calculation of the employee's next WGI. The employee received an "equivalent increase" upon the temporary promotion. Processing a permanent promotion without moving the employee back to the lower graded position does not change the date of the "equivalent increase." Therefore, the waiting period starts on the date of the temporary promotion.

A9: No. An employee who is returned from a temporary promotion to his or her regular grade and step and is subsequently promoted to the same grade held during the temporary promotion receives an "equivalent increase" upon the permanent promotion and begins a new waiting period on the date of the permanent promotion. The time spent in the temporary grade and step is not creditable service towards the completion of a waiting period when the employee is permanently promoted.

NOTE: If a temporary promotion is made permanent immediately after the temporary promotion ends, the agency may not return the employee to the lower grade. The agency must convert the employee's temporary promotion to a permanent promotion without a change in pay. See 5 CFR 531.214(e).

A10: For an employee who performs service under a non-GS Federal pay system which is potentially creditable towards a within-grade increase waiting period, an equivalent increase is considered to occur at the time of any of the following personnel actions:

• A promotion to a higher grade or work level (unless the promotion is cancelled and the employee's rate of basic pay is redetermined as if the promotion had not occurred); or

• An opportunity to receive a within-level or within-range increase that results in (or would have resulted in) forward movement in the applicable range of rates of basic pay, where "forward movement in the applicable range" means any kind of increase in the employee's rate of basic pay other than an increase that is directly and exclusively linked to (1) a general structural increase in the employee's basic pay schedule or rate range (including the adjustment of a range minimum or maximum) or (2) the employee's placement under a new basic pay schedule within the same pay system.

A non-GS pay system is one that does not meet the definition of  "General Schedule" or "GS" in 5 CFR 531.403. The personnel actions above must have occurred within the same pay system. That is, even if an employee receives an increase in pay moving between pay systems, that "promotion" or other pay increase is not considered an equivalent increase.

For example, the DoD NSPS pay system is a non-GS pay system. The following NSPS pay events would be considered equivalent increases under 5 CFR 531.407(b):

1. A promotion to a higher band (as defined by the DoD), excluding a temporary or probationary promotion that is later cancelled;

2. Any within-band increase other than a rate range increase under 5 CFR 9901.323, which would include the following:

   • A performance pay increase under 5 CFR 9901.342;

   • A special within-band increase under 5 CFR 9901.344 (excluding an increase under §9901.344(a)(3) that is limited to a general structural increase as described in 5 CFR 531.407(b)(2)(i));

   • A developmental pay increase under 5 CFR 9901.345;

   • A reassignment increase under 5 CFR 9901.352 upon reassignment to a position within the same band (i.e., excluding reassignment to a comparable band, since that band is in a different NSPS pay schedule with its own basic pay schedule);

   • An increase (if any) under 5 CFR 9901.354 provided after a reduction in band in the same pay schedule (i.e., excluding movement to a lower band in a different pay schedule); or

   • A one-time pay adjustment upon conversion to NSPS under 5 CFR 9901.373(e) (e.g., a WGI buy-in). OPM has a general policy that a pay increase resulting from a change in pay systems does not count as an equivalent increase. However, the NSPS WGI buy-in adjustments are pay adjustments made under the NSPS system after conversion (although effective immediately on the date of conversion). Under the NSPS regulations, employees are converted with no change in pay. The WGI buy-in adjustment is a discretionary adjustment made following that conversion.

3. A zero increase at the time of an opportunity for an increase, which would include the following:

   • A zero performance pay increase under 5 CFR 9901.342, excluding employees who do not have an opportunity for an increase because their rate equals or exceeds a range maximum (see Note 1);

   • A zero developmental pay increase under 5 CFR 9901.345, if there is a fixed schedule for receiving such an increase;

   • A zero pay adjustment (WGI buy-in) upon conversion to NSPS under 9901.373(e), if the zero adjustment was based on the employee being rated below an acceptable level of competence (as defined in 5 CFR part 531, subpart D), as required by NSPS implementing issuances in SC1911.4.5.1.

Note 1: To the extent that DoD establishes any control point that serves as a maximum rate for all positions within a defined subcategory within a band based on labor market factors (without regard to performance rating), a pay increase denied solely because of such control point would not be considered to be an opportunity for an increase and thus would not be considered to be an equivalent increase.

Note 2: Consistent with 5 CFR 531.407(c), a local market supplement adjustment under NSPS would not be considered an equivalent increase. Also, an adjustment resulting from being placed in a subcategory of positions to which a higher supplement applies would not be an equivalent increase.

A11: After an agency has set an employee's pay, the agency must go back the length of the waiting period in the employee's work history to determine the date of the last equivalent increase. For example, a WJ-11 employee is hired into a GS-13 position and pay is set at step 1. The waiting period at step 1 is 52 weeks. If the employee did not receive an equivalent increase in the prevailing rate pay system during that time period, the employee is entitled to a WGI to step 2 upon movement to the GS position.