Initial pay rates on hiring typically are set according to how the position is classified. However, agencies may set the rate of basic pay of a newly appointed employee at a rate above the minimum rate of the appropriate General Schedule grade because of the superior qualifications of the candidate, or a special need of the agency for the candidate’s services.
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The Office of Personnel Management sets position classification standards for determining the series and grade and, consequently, the basic pay for General Schedule positions. Position classification standards are developed for broad occupational groupings. These standards are called “job family standards.”
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The General Schedule is the federal government’s main pay system that sets the pay rates for employees in most white-collar positions not at the senior executive or other senior levels. The General Schedule is composed of 15 grades, or salary levels. Each grade includes 10 steps, roughly 3 percent apart, through which employees advance based on satisfactory job performance and length of service.
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