About this directive
| Reference to applicable legislation (act or regulation): | Part 7, Sections 42 to 45, 47, 48, Public Service Employment Regulation Part 1, Section 13, Public Service Act |
|---|---|
| Application: | All employees appointed or employed pursuant to the Public Service Act. Note: employees who are members of the bargaining unit are subject to the terms of the Collective Agreement. Any terms, conditions, or entitlements related to salary adjustments addressed in the Collective Agreement supersede this directive. |
| Last updated: | March 2026 |
| Last reviewed: | March 2026 |
| Amended by: | Alberta Public Service Commission: Strategic Services, Strategic Workforce Policy, Compensation and Job Evaluation Policy |
Purpose
To provide clarity and transparency to support the consistent and accurate application of salary adjustments for employees across the Alberta Public Service.
Overview
This directive describes how salary anomalies, merit/in-range increases, quick increments, long service pay adjustments and general increases should be applied.
Disclaimer: If there are any discrepancies in how the terms are defined below and the Public Service Act and Public Service Employment Regulation, the act and regulation supersede.
Definition of terms
Bargaining unit – Employees under the Public Service Act designated to be represented by a trade union as the certified bargaining agent, as defined by the Public Service Employee Relations Act.
Classification – Distinct kind (stream of work) and level of work (level 1, 2, 3…) allocated to a position based on the nature of work, responsibilities, scope and complexity.
Continuous service – Means any period of employment that is not interrupted by a break in service.
Deputy head – Chief officer of a department, as well as various positions including clerks, officers and commissioners as prescribed in section 1(d) and section 1(d)(viii)(B) of the Public Service Act.
Increment – The movement between one step and the following step within the same pay grade.
Management – Employees appointed to a position in the Management Job Evaluation Plan, and paid in accordance with Schedule 2, Management Official Pay Plan within the Public Service Employment Regulation.
Maximum salary – The highest rate of a salary range, pay band, pay zone or pay grade.
Minimum salary – The lowest rate of a salary range, pay band, pay zone or pay grade.
Non-management – Includes employees in bargaining unit, position exempt, and opted out and excluded employment groups.
Non-union – Includes employees in management, position exempt and opted out and excluded employment groups.
Opted out and excluded – Employees in a classification not included in the bargaining unit, who are appointed to a position in the Point Rating Evaluation Plan, and paid in accordance with Schedule 1, Part 1-A, Part 2-A and Part 2-B of the Opted Out and Excluded Official Pay Plan in the Public Service Employment Regulation.
Pay band – A salary range assigned to a management classification [for example: Manager (Band 1), Senior Manager (Band 2), Executive Manager I (Band 3), Executive Manager II (Band 4), and Executive Manager III (Band 5)] in Schedule 2 of the Management Official Pay Plan in the Public Service Employment Regulation.
Pay grade – A salary range that includes a minimum and maximum step, as well as steps between these endpoints, for bargaining unit classifications identified within the Collective Agreement.
Pay zone – An established boundary, within a pay band, for the Manager (Manager Zone 1, Manager Zone 2) and Senior Manager (Senior Manager Zone 1, Senior Manager Zone 2) classifications.
Position exempt – Employees in a bargaining unit classification who are excluded from the union in accordance with Part 3, Division 3, Section 12 of the Public Service Employee Relations Act.
Salary compression – A situation in which a subordinate’s salary is within 3% of their direct supervisor’s salary.
Salary inversion – A situation in which a supervisor’s salary is lower than their direct subordinate’s salary.
Salary range – A range that includes set minimum and maximum salaries, which are assigned to opted out and excluded, and management classifications that are identified in the Official Pay Plans.
Step – A single salary rate assigned within a pay grade of bargaining unit or position exempt salary grids (Note: step is referred to as a period within Collective Agreement, or referred to as pay period within the Public Service Employment Regulation).
Salary anomalies for non-union employees
A deputy head may authorize an in-range salary adjustment for a non-union employee when a salary anomaly is confirmed under one of the following exceptional circumstances:
- a salary compression or inversion between a supervisor and their subordinate
- a supervisor’s salary should be at least 3% higher than their subordinate
- an inequitable salary relationship between peer employees
- a situation in which the existing salary level of an employee is not commensurate with their position responsibilities or qualifications, and there are retention concerns.
When resolving an exceptional circumstance, the in-range salary adjustment should not result in a new compression or inversion situation or create an inequitable salary relationship. The effective date is normally the date the salary anomaly request is submitted to the deputy head.
An in-range salary adjustment does not apply to employees at the maximum salary, or to an employee on an acting assignment as it is short-term and temporary.
Merit/in-range increases for non-union employees
A deputy head may adjust the salary of a non-union employee, on their anniversary date based on an assessment of satisfactory performance, and approved in accordance with the HR Decision Matrix, as follows:
- Management employees not at the maximum salary range of the assigned classification may receive up to a 4% in-range salary increase, and (normally) have been in their position for at least six months. Management employees have an anniversary date of April 1.
- Opted out and excluded employees not at the maximum salary range of the assigned classification may receive an annual merit increase of 4%.
- Position exempt employees not at the maximum salary of the assigned classification may receive one increment annually.
A deputy head may, with Public Service Commissioner approval, provide beyond the standard annual merit/in-range increase when they are satisfied that the employee’s performance justifies an additional salary increase.
When a deputy head has withheld a merit or in-range increase, based on less than satisfactory performance, the adjustment may be granted when the deputy head determines the employee’s performance is satisfactory.
Merit increases for bargaining unit employees
As per Article 45 of the Collective Agreement, a bargaining unit employee’s rate of pay will be adjusted by one increment, on their anniversary date, unless there is a justifiable reason identified for withholding the increment (for example, less than satisfactory performance).
Quick increments
Quick increments are additional accelerated salary adjustments (at 3, 6, 12 and 18 month intervals) for eligible bargaining unit classifications. Quick increments will be implemented in accordance with Subsidiary #001, Schedule C of the Collective Agreement.
Employees in the following classifications are eligible to receive a salary adjustment of one increment upon deputy head approval:
Table 1. Salary adjustment increments.
| Classification | Step placement on appointment | 3 month increment | 6 month increment | Anniversary date increment | 18 month increment | Anniversary date increment thereafter |
|---|---|---|---|---|---|---|
| Operational Services 1 Grade 23 (40.00 hours) | Step 3 | N/A | 1 | 1 | N/A | 1 |
Long service pay adjustment for non-management employees
Opted out and excluded and position exempt employees will receive a 2% salary modifier upon achieving 20 years of continuous service with the Alberta Public Service.
Bargaining unit employees are eligible to receive the 2% salary modifier in accordance with Letter of Understanding #29 of the Collective Agreement.
General increase for non-union employees
A deputy head may, in accordance with the general increase instructions issued by the Public Service Commissioner and the HR Decision Matrix, adjust the salary of an employee whose position:
- is assigned to a management classification
- is assigned to an opted out and excluded classification
- is assigned to a bargaining unit classification, but the position is excluded from the bargaining unit (position exempt) under Section 12(1) (b) to (k) of the Public Service Employee Relations Act
Resources
The Salary Determination and Salary Adjustments Guidelines provide detail to ensure consistent and accurate application of salary adjustments across the Alberta Public Service.