Salary determination directive

About this directive

Purpose

To provide clarity and transparency for consistent application on salary determination across the Alberta Public Service.

Overview

This directive describes how Alberta Public Service employees are paid and how an employee’s salary is determined related to appointment, promotion, lateral transfer, demotion and temporary or acting assignments.

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.

Calendar days: includes weekdays, weekends and paid holidays.

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.

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.

Employment group: refers to employees who work in positions that are bargaining unit, position exempt, opted out and excluded, and management.

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 in a salary range, pay band, pay zone or pay grade.

Minimum salary: the lowest rate in 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.

Over-range: a salary greater than the maximum salary of the assigned classification.

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 the Collective Agreement, or referred to as a pay period within the Public Service Employment Regulation).

Work day: any day on which employees are expected to be at their place of employment.

Bi-weekly pay

All Alberta Public Service employees are compensated on a bi-weekly pay schedule. Official pay plans and salary ranges are represented as bi-weekly in accordance with the Public Service Employment Regulation and Collective Agreement.

Compensation for a partial bi-weekly pay period

When an employee does not work their required number of work days or hours, they are paid for the number of full or partial days worked within the applicable bi-weekly pay period. Paid holidays falling within that period are included.

An employee will be compensated for a partial bi-weekly pay period in the following circumstances:

• employment commences after the first work day of a bi-weekly pay period
• employment is terminated before the last work day of a bi-weekly pay period, or
• absence without pay occurred during the bi-weekly pay period

In these situations, bi-weekly salary is reduced by the number of full or partial work days not worked, using the daily rate of pay. For the purposes of calculating pay, a portion of a work day worked will be rounded to the nearest quarter hour.

Appointment

A person appointed to a position will be paid within the pay grade, salary range, pay band or pay zone of the assigned classification of that position, as determined by the deputy head, and approved in accordance with the HR Decision Matrix.

During salary discussions and in confirming a salary offer for appointment, consideration must be given to balancing fiscal prudence with obtaining qualified candidates. The following factors must be considered, in determining an equitable and reasonable salary on appointment to a position:

• qualifications of the candidate (for example, relevant education and experience)
• internal equity (for example, salary relationship to subordinates, peers, and supervisor)
• external market (for example, candidate possess credentials and/or "in-demand" skills difficult to recruit).

Promotion

A promotion occurs when an employee is appointed to a position with a classification that has a higher maximum salary.

The employee’s current salary is to be used when setting salary upon promotion, exclusive of any market modifier, acting pay, contract modifier, long service pay adjustment and premium pay (allowances, shift differential, overtime, etc.). However, if a non-management employee is promoted to a management classification, the long service pay adjustment is considered when setting the new salary as management employees are not eligible for the long service pay adjustment.

Upon promotion, an employee will receive a salary increase based on the employment group and percentages, unless a higher percentage or increment is required for the employee to receive the minimum salary of the new pay grade, salary range, pay band, or pay zone.

A lower percentage, or less than one increment, will be provided to ensure the employee’s salary does not exceed the maximum salary of the new pay grade, salary range, pay band or pay zone. Employees will not be paid beyond the maximum salary.

Salary upon promotion will be approved in accordance with the HR Decision Matrix.

Bargaining unit employees

In accordance with Article 51 of the Collective Agreement, an employee promoted to another bargaining unit classification with a higher maximum salary will normally receive a one increment increase in salary.

When a bargaining unit employee moves from a classification with no pay grade assignment (for example, power plant engineer, carpenter, electrician, etc.) to a classification with a pay grade, the salary will be placed at a step in the new grade that provides a minimum 4% increase.

A bargaining unit employee will receive a 4% increase when promoted to an opted out and excluded classification, and an 8% increase when promoted to a management classification.

Position exempt employees

An employee will receive a one increment increase in salary, when promoted to a bargaining unit classification (position is included or excluded from the bargaining unit) in which a pay grade applies.

A position exempt employee will receive a 4% increase when promoted to an opted out and excluded classification, and an 8% increase when promoted to a management classification.

Opted out and excluded employees

An opted out and excluded employee promoted to another opted out and excluded classification, with a higher maximum salary, will receive a 4% increase, or 8% increase when promoted to a management classification.

When an opted out and excluded employee is promoted to a bargaining unit classification (position is included or excluded from the bargaining unit) that includes a pay grade, the salary will be placed at a step within the new grade, which provides a minimum 4% increase.

Management employees

A management employee promoted to a classification with a higher maximum salary will receive a salary increase of 4% for a zone-to-zone change or 8% for band-to-band change.

Anniversary date consideration upon promotion

An employee who has completed 6 months or more of service towards their next scheduled salary increase (anniversary date), will receive their merit or in-range adjustment, subject to satisfactory performance as determined by the deputy head, as follows (provided the employee does not exceed the maximum salary of the new classification):

• bargaining unit employees will receive one increment
• position exempt employees will receive one increment
• opted out and excluded employees will receive a 4% increase within the range
• management employees will receive an increase of up to 4% within the range

Exceptions

A deputy head may authorize providing an employee with a higher promotional increase if an exceptional circumstance exists, such as:

• 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 where an employee possesses credentials and/or “in-demand” skills required for the new position which are difficult to recruit

When resolving an exceptional circumstance, the higher promotional increase should not result in a new compression or inversion situation or create an inequitable salary relationship.

Table 1. Higher promotional increase cap on exception

If a deputy head wants to exceed the higher promotional increase cap for a bargaining unit employee, Public Service Commissioner approval is required.

The effective date of the salary increase is normally the effective date of the promotion or reclassification.

Lateral Transfer

An employee will normally to be paid the same salary if they are appointed to a position that has a classification with the same maximum salary as their current position.

A deputy head may approve an in-range salary adjustment if the employee’s salary qualifies as an anomaly under the Salary Adjustments directive.

Demotion

Non-management employees

When a non-management employee is demoted, on a deputy head's authority, to a position with a classification that has a lower maximum salary, the impacted employee’s salary will be protected over-range until it falls within the salary range of the new classification. The over-range protection will cease once the employee leaves the position. A non-management employee's salary will be reduced immediately, to at least the maximum of the lower classification, if the demotion is the result of a voluntary (for example, employee applies to a position with a lower maximum salary) 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 in consideration of the work and assigned classification, the deputy head may assign a lower salary.

When an employee's current salary does not match a step in the pay grade of the newly assigned classification, the employee's salary will be maintained between steps until the next salary increase. The new salary will be at a step 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 classification 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 Management Over-Range Pay Directive.

A management employee's salary will be reduced immediately, to at least the maximum of the lower classification, if the demotion is the result of a voluntary (for example, employee applies to a position with a lower maximum salary) or disciplinary action.

Temporary Assignment

When an employee appointed to a position, for a temporary period, (for developmental or other purposes) that is assigned a classification with a higher maximum salary, the deputy head may authorize a salary adjustment for the temporary assignment according to promotional guidelines.

Acting Assignment

Acting assignments are intended to be short-term in nature and are often used to provide cover off for leaves, or vacancies during the recruitment process. When an employee is required to perform the principal duties of a higher classification, for a period of 12 months or less, the deputy head will authorize a salary modifier to reflect a temporary salary increase within the pay grade, salary range, pay band or pay zone of the higher classification.

Eligibility Requirements*

• Employees in an acting assignment must meet the minimum recruitment standards of the higher classification for the position.
• No more than one employee can act against the same position at the same time.
• Non-management employees are required to act for a minimum of 5 consecutive work days to qualify for acting pay.
• Management employees are required to act for a minimum of 30 consecutive calendar days to qualify for acting pay.

* Note: Bargaining unit employees may have different eligibility requirements. Any terms, conditions, or entitlements related to eligibility requirements for acting pay addressed in the Collective Agreement supersede this directive.

Table 2. Application of temporary salary modifier based on employment group

Application

• Acting pay is calculated to take effect, retroactively, from the first day the employee performs the higher duties and continues until the last day the employee is required to perform the higher-level duties.
• Acting pay is considered pensionable salary.
• 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.
  • 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.
• An employee will continue to receive acting pay for a maximum of 22 consecutive work days during a paid leave, provided no other employee is receiving acting pay for the same position.

Exceeds 12 months

If an acting assignment exceeds 12 months, a temporary assignment should be utilized to ensure equitable treatment by providing the employee with the entitlements associated with the classification of the position. A temporary assignment is considered an appointment and requires a competition or exemption (Talent Acquisition Services will provide advice as to a competition or exemption). When on a temporary assignment, the employee’s classification, salary and benefits will align to 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 will return to their base position or a position at a comparable level; and their classification, salary, benefits and the anniversary date will be adjusted as if the employee was never on a temporary assignment.

Retroactivity

The deputy head may authorize a retroactive salary increase, in the form of a lump sum payment, for an employee who has been 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.

Resources

The Salary Determination and Salary Adjustments Guidelines provide detail to ensure consistent and accurate application of salary adjustments across the Alberta Public Service.