Pay Under the General Schedule

1/15/85 3550. 14 Appendix APPENDIX 1. PAY-SE'ITING EXAMPLES AND EXPLANATIONS 1 • OBTAINING THE MAXIMUM PAYABLE RATE FOR NON-1w1ERIT PAY EMPLOYEES PAID ONDER THE GS.

Highest previous January 1974 rate, $21,366.00 per annum (GS-13/2} January 1974-1980 Break in Federal Service January 1980 .Eeanployed as GS-11 I 1 (highest previous rate rule not applied} January 19d1 Pranoted to GS-12/8, $33,237 per annum (maximun payable rate using the highest previous rate} a. Steps to Maximum Payable Rate.

( 1 } Ose the fdY scale that was current in January 197 4 (time highest ~revious rate was earned}.

(a} c.n that pay scale locate the step of the GS-12 (grade to which l.!.'llployee is currently being pranoted) which is equal to or greater than the GS-13/2 rate of $ 21,366.00 . This is step 8 of the GS-12.

(b) ·rransfer that grcrle aoo step to the current pay scale for January 1981 • ( 2} Use the f?aY scale that was current in January 1981 (time of ~ranotion action). Identify the rate of basic pay for the GS-12, step 8.

This is the maximum rate of basic pay that may be paid the anployee.

b. Sunmary. The maximum rate of basic pay reflects the step determined on the old pay scale arrl brought forward to the pay scale that is current for the personnel action being processed. The highest previous rate determines the step that will be used. If the dollar amount falls between tv.o steps (on the old scale} of the grcrle to which the anployee is being assigned, t."'le higher of the tv.o is used as the step in the rate (grade arrl step) that is transferred fran the old pay scale to the new pay scale.

2. EXPLANATION OF HIGHEST PREVIOUS RATE FARNED IN A POSITION NO!' SUBJECT TO THE GS. The anptoyee w::>rked for the Federal Cbverrment in a E=QSltion subject to a Vli Schedule in Dece.nber 1973. During the sane rocnth the anployee acce}:)ted a GS-7 E=QSition with FAA. 'lb determine the anplo:yee' s highest previous rate, the actual rate earned at the time of Federal Service (in this example, $7.86 fer oour) must be computed on an annual basis ($ 16,348.80 per annum). This rate ($ 16,348.80 ) is then compared to the annual rates which were authorized under tne GS arrl in effect at the t~ of the Federal Service. An equivalent annual rate (i.e., GS grade arrl step) that is of maximun benefit to the employee is selected. In this example the anployee's actual rate of $ 16,348.80 per annum fell between two rates within the range of tv.o or more grcrles un:ler the Cctober 1973 GS; GS-10 (steps 7 and 8) aoo Page 1

3550.14 1/15/85 Appendix G&-11 (steps 4 and 5). M equivalent .:mnual rate (i.e., GS grade and step) that is of maximuu beneftt tv the employee is selected. 'Ihe maximun benefit derived by the e1'1ployee ....aulu occur oy applying the rate for the G&-11, step 5 ($16,627). This rate (i.e., Gs-11, step 5) becomes the "equivalent annual rate" and tnus is tne employee's hiobest previous rate.

'Ihis equivalent a~mual rate (i.e., grade and step) is then cornpared to the 1973 GS races in effect at that time ror that grade and step, and the employee's salary is set so t:1at it reflects the current dollar value for the employee's highest previous rate; i.e., the grade and step selected as ~~e highest previous rate. Since this rate exceeded the rate for the highest step ($12,957) of G&-7 (the grade at which the employee had accepted employment with FAA) , the e.11ployee' s salary was set at step 1 0 of G&-7.

In D:cember 1974, the e:mployee was promoted to a Gs-9 t=esition. UpJn r:ranotion, the employee's high~:st previous rate (G&-11, step 5) must be converted under the 1974 GS rates that became effective on October 13, 1974, to $17,545. Because this equivalent annual rate (i.e., G&-11, step 5) exceeded the rate for the highest step of the Gs-9 grade ($16,693), the employee's salary was set at step 10 of the G&-9 grade.

In D:cember 1975, the employee was promoted to a G&-11 position. UpJn pccmotion to the G5-11Jposition, the employee's highest previous rate (G&-11, step 5) must be converted under the 1975 GS rates that became effective on October 12, 1975, to $18,423. The employee's pay is set at G&-11, step 5 ($18,423); at this point the employee has caught up with his/her highest previous rate and nas received tne minimun tv.o-step salary increase required upon promotion. SUbsequent pay for promotion actions (e.g. , to G&-12) v.ould be set by applying the minimun tv.o-step salary increase requirement.

3. 'IDI'AL NIGHT DIFFERENTIAL RECEIVED BY A WG EMPLOYEE WHO HOVES TO A GS POSITION. An employee s most recent complete cyclic schedule involves a 35-day period. 'Ihe e.rnployee is actually scheduled to ....ark a total of 25 days out of the 35-day cycle. The employee ....arks: a. Five shifts fran 10:00 a.m. to 6:30 p.m.

b. Seven sh1fts frorn 3:00 a.m. to 11:30 p.m.

c. Six shifts from 8:00 a.m. to 4:30 p.m.

d. seven shifts from 11:00 p.m. to 7:30a.m.

Of the 25 shifts actually v.orked, the employee ....or ked 7 evening shifts, which are comfensable at the 7 1/2-p::rcent diffecential, and 7 inidnight shifts, which are canpensable at the 10 percent differential. 'Ihe remaining 11 shifts are ....orked during times 'When a majority of the hours v.orked did not fall between the hours for which a night differential is payable.

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l/15/85 3550.14 Appendix Annualizi119 the time w::>rked on the eveni119 shift results in the employee working 7/25 x 2,080 hours = 582.4 hours. Assuming a scheduled rate of $9.00 ~r hour, the employee for eveni119 shifts is entitled to a 7 1/2 J?ercent night differential (7 1/2 percent of $9.00 = $.675). Therefore, the employee's evening shift differential can be detennined as 582.4 hours x $.675 or $393.12.

Annualizing the ti~e worked on the midshift results in the employee v.orking 7/25 x 2,080 hours= 582.4 hours. Assuning a scheduled rate of $9.00 per hour, the employee for midshifts is entitled to a 10 percent night

differential (10 J?ercent of $9.00 = $.90). Therefore, the midshift

differential can be determined as 582.4 hours x $.90 = $524.16.

The employee's total night differential of $917.28 ($393.12 + $524.16) is added to the employee's scheduled rate of pay of $18, 720 ( $9. 00/hour x 2,080 hours) to arrive at the employee's rate of basic pay $19,637.28 ($917.28 + $18,720). The employee's rate of basic pay of $ 19,637.28 is the correct rate to use in determini119 the p:-oJ?er step in the GS gra:le at which to set the s~ployee's salary when the employee moves to the GS position.

NOTE: Employees who are excused fran v.ork on a ool iday should be considered to have worked whatever shift they would have worked had they not been excused.

4. TCII'AL NIGHT AND ENVIIDNMENTAL DIFFERENTIAL RECEIVED BY A 1\G EMPLOYEE WHO MOVES TO A GS l?OSITION. lin employee's most recent canplete cyclic schedule mvolves a 35~ay J?erlcd. The employee is actually scheduled to work a total of 25 days out of the 35-<lay cycle. The employee v.orks: a. Five shifts from 10:00 a.m. to 6:30 p.m.

b. Seven shifts from 3:00 p.m. to 11:30 p.m.

c. Six shifts from 8:00 a.m. to 4:30 p.m.

d. Seven shifts from 11:00 p.m.

to 7:30 a.m.

Night Differential. Of the 25 shifts actually worked, the employee worked 7 evening sh1fts, Ml.ich are cc:mp=nsable at the 7 1/2 J?ercent differential, and 7 midshifts, which are compensable at d1e 10 percent differential. The remaining 11 shifts are v.orked during times when a majority of the hours worked did not fall between the hours for which a night differential is payable.

Annualizing the time worked on the evening shift results in the employee

v.orking 7/25 x 2,080 hours = 582.4 hours. Assuning a scheduled rate of $9.00

per hour, the employee for evening shifts is entitled to a 7 1/2 percent night differential (7 1/2 percent of $9.00 = $.675). TI1erefore, the employee's evening shift differential can be determined as 582.4 hours x $.675 or $393.12.

Page 3 l/15/85 3550. 14 App::ndix Annualizing the time worked on the midshift results in the employee v.orking 7/25 x 2,080 hours= 582.4 hours. Assuning a scheduled rate of $9.00 per hours, the employee for midshifts is entitled to a 10 percent night differential (10 percent of $9.00 = $.90). Therefore, the midshift differential can be determined as 582.4 hours x $.90 = $524.16.

NOI'E: E.'-nployees who are excused frcm v.ork on a rol iday should be considered to have worked whatever shift they v.ould have v.orked had they not been excused.

Environmental Differential. During the 25 shifts actually v.orked, the employee was exposed to s1tuations for which a differential is authorized under part I, a~ndix J, of FPM Slpplement 532-1 as follows: Day Period of Ext:esure Differential .Rate Differential Earned tvbnday 8:00 a.m. 8:30 a.m. 4 .~:Jercent 1 hour at 4 percent

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8:SO 4 _,::ercent a.rn. - 9:00 a.m. 0 (second exposure in same hour) 9:10 9:15 a.m. 4 percent hour at 25 percent a.m. - (pay for an hour at higher rate) 9:55 a.m. - 10:00 a.m. 25 percent 10:20 a •. n. 11:40 a.m. 25 percant 1/2 hours at

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25 percent (paid in multiples of 15 minutes for exposure beyond 1 hour) 1:00 p.m.- 1:05 p.m. 4 percent hour at 25 percent ( see following ) 15 minutes at 1 :55 p.m. - 2: 10 p.m. 25 percent 25 percent (Continuation of p:-eceding hour)* 2:14p.m. - 2:20 p.~. 4 p:rcent 15 minutes at 25 percent *(Continuation of preceding hour: paid at highest differential rate when more than one exposure occurs during a continoous period of time. See paragraph 328 of <Xder 3550. 10, Pay .Administration (General), for additional clarification).

Differential earned during this period is based on a total of 1 hour of exposure at 4 p:rcent rate, and 4 rours of ext;Osure at 25 percent rate. The total nunber of hours worked by the employee during his most recent complete cyclic schedule is 8 hours x 25 shifts = 200 hours.

Annualizing the time v.orked at the rate of 4 percent results in the employee v.orking 1/200 x 2,080 hours= 10.4 rours. Similarly, annualizing the time v.orked at a rate of 25 percent results in the employee v.orking 4/200 x 2,080 hours= 41.6 hours.

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1/15/85 3550. 14 Appendix Four percent (differential) x (W"..r10, step 2; on the current regular

Nonsupervisory Wage Schedule for the area) = cents-per-hour amount to be

paid. Assuning a scheduled rate of $4.22 per hour, for WG-10, step 2, the employee is entitled to a differential amount of $.17 (4 percent of $4.22).

Similarly, where a 25 percent differential is authorized and assuning a scheduled rate of $4.22 per hour for ~10, step 2, the enployee is entitled to a differential amount of $1.06 (25 percent of $4.22).

The employee's environmental shift differential at a differential rate of 4 percent can be determined as 10.4 hours x $. 17 or $1.77. 'Ihe environmental shift differential at a differential rate of 25 percent can be determined as 41.6 hours x $1.06 or ~44.10.

The employee's total environmental differential of $45.87 ($44.10 + $1.77) is added to tl1e employee's scheduled rate of pay of $18,720 ($9.00/hour x 2,080 hours) plus total night differential of $917.28 ($393.12 + $524.16) to arrive at the employee's rate of basic pay of $ 19,683.15 ($45.87 + $917.28 + $18,720). The employee's rate of basic pay of $ 19,683.15 is the correct rate to use in determining the proper step in the GS grade at which to set the employee's salary when the employee moves to the GS position.

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