Salary Determination

This directive describes how an employee's salary is determined when appointed, promoted, transferred, demoted, or given temporary or acting assignments. It also covers retroactive salary increases and regrading of a class.

Appointment

A person appointed to a position will be paid within the salary range, pay band or pay zone of the assigned class of that position as determined by the deputy head. The following factors will determine the appointment salary:

  • previous salary

  • qualifications

  • salary relationship to subordinates, peers, and supervisor

  • budget implications

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Promotion

An employee appointed to a position assigned a class with a higher maximum salary will be paid within the new salary range, pay band, or pay zone effective the date of promotion. The following factors will determine the salary upon promotion:

  • recognition of exceptional performance

  • increase in responsibilities

  • service of six months or more toward the next scheduled increase

  • salary relationship to subordinates, peers, and supervisor

  • market conditions

  • qualifications

  • budget implications

Bargaining Unit Employees An employee promoted to a class with a higher maximum salary will normally receive a one-increment increase in salary. The one-increment increase is calculated by moving from one pay period to the next within the same pay grade, or by moving two pay grades higher to the same pay period, as may be appropriate. The deputy head may approve an increase greater than one increment in consideration of the factors that determine salary when an employee is promoted.

When a bargaining unit employee moves from a class with no pay grade assignment to a class with a pay grade, the salary will be placed at a period in the new grade that provides a minimum four percent increase.

Opted Out and Excluded Employees classified under Schedule 1 Part2-A and Part 2-B – A non-management employee promoted to a class with a higher maximum salary will normally receive a 4% increase in salary. The deputy head may approve an increase greater than 4% in consideration of the factors that determine salary when an employee is promoted.

Management Employees – A management employee promoted to a pay band or zone with a higher maximum salary will normally receive an in-range salary increase at an amount determined by the deputy head. For band adjustments, an increase of up to 8% is the suggested guideline. A zone adjustment is normally less than the band to band adjustments.

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Transfer

An employee appointed to a position assigned a class with the same maximum salary as their current position will normally continue to be paid the same salary.

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Demotion

Non-Management Employees – When an employee is demoted on the deputy head’s authority to a position assigned a class with a lower maximum salary, their salary will be protected over-range until it falls within the salary range of the new class.

A non-management employee’s salary will be reduced immediately to at least the maximum of the lower class if the demotion is the result of a voluntary or disciplinary action.

If an employee is demoted for the mutual benefit of the department and the employee, but this would result in the employee’s salary being protected over-range at an unreasonably high level for the work performed, the department may assign a lower salary.

When an employee’s current salary does not match a pay period in the pay grade of the newly assigned class, the employee’s salary will be maintained between periods until the next salary increase. The new salary will then be at a pay period in the pay grade that ensures a one-increment increase. The maximum salary for the pay grade will not be exceeded.

Management Employees – An employee demoted to a position assigned a class with a lower maximum salary will be paid within the pay band or pay zone unless the deputy head approves otherwise as set out in the directive Over-Range Pay.

A management employee’s salary will be reduced immediately to at least the maximum of the lower class if the demotion is the result of a voluntary or disciplinary action.

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Temporary Assignment

When an employee is assigned to a higher level position for a temporary period (for developmental or other purposes), the deputy head may authorize a salary adjustment for the temporary assignment according to promotional guidelines. All benefits are affected by this pay change for the duration of the assignment. The employee's salary will be readjusted at the end of the assignment to the salary the employee would have been receiving had the assignment not occurred.

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Acting Assignment

When an employee is required to perform the principal duties of a higher class full time, the deputy head will authorize a salary modifier according to promotional guidelines (see Promotion) to reflect a temporary salary increase within the salary range, pay band or pay zone of the higher class. A non-management employee is required to act for a minimum of 5 consecutive work days, and a management employee a minimum of 30 consecutive calendar days. The deputy head may authorize a lump sum payment instead of a salary modifier for a management employee. The acting pay is effective retroactively from the first day the employee performs the higher duties and is considered pensionable salary. For more information, see directive Salary Calculation.

The employee’s classification level will not change when the acting assignment is for 12 months or less. Anniversary dates will not change during an acting assignment that does not exceed 12 months. If an anniversary date occurs during the acting assignment and a merit increase is granted, the acting salary will be reviewed to determine if an adjustment is required.

For acting assignments that exceed 12 months, the employee’s class, salary and benefits will be adjusted to reflect the duties being performed. The anniversary date will change to the effective date of the acting assignment. At the end of the assignment, the employee’s class, salary, benefits, and the anniversary date will be adjusted to reflect the level the employee would have reached had the acting assignment never occurred.

An employee on authorized vacation leave during an acting assignment will continue to receive acting pay, provided no other employee is receiving acting pay for the same position. An employee on an acting assignment for less than 12 months will continue to receive acting pay for a maximum of 22 consecutive work days during sick leave or other leaves, provided no other employee is receiving acting pay for the same position.

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Retroactivity

The deputy head may authorize a retroactive salary increase in the form of a lump sum payment for an employee who has terminated or resigned and has requested such payment in writing. In the case of retirement or death, the retroactive increase in the form of a lump sum payment will be paid automatically to the employee or to the employee’s estate, and any pension or other payment will be adjusted accordingly. For more information, see directive Salary Calculation.

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Regrading

The Public Service Commissioner will issue instructions on salary implementation when a classification is regraded or revised.

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About this Directive

Authority: Public Service Employment Regulation
Application:   Organizations under the Public Service Act
Effective Date:   30 June 2011
Contact:   Compensation / Benefits

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