Rates of Pay And How To Calculate Them

WHAT IS...
RATES OF PAY AND HOW TO CALCULATE THEM
UPON ENTERING THE PUBLIC SERVICE
Rates of pay are determined through collective
bargaining. Each collective agreement contains
the rates of pay applicable to the group in
question. Employees are entitled to be paid for
services rendered at the pay rate specified for the
classification prescribed in the employee’s
certificate of appointment.
The rate of pay shall normally be the minimum of
the scale of rates applicable to the position.
However, a few years ago, Treasury Board
approved a policy stating that salaries above the
minimum could be offered in circumstances
where it is considered necessary in order to
obtain suitably qualified persons.
In order to obtain a salary above the minimum
rate, one of the following conditions must be met:
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if there is a shortage of skilled labour in
the field involved, as evidenced by local
or regional labour market surveys from
recognized institutions;
if there are unusual difficulties in filling the
position with properly qualified candidates
(i.e. the minimum rate of pay is not
competitive with the rates offered by local
or regional employers for similar
positions)
operational conditions require the
presence of a highly skilled or
experienced employee who can assume
the full duties of the position immediately
upon taking employment (training a
novice employee would impose an
unacceptable burden on the employing
department).
Note that the negotiation for the starting salary
should take place prior to signing a letter of
appointment.
ACTING APPOINTMENT
An acting appointment is a situation where an
employee is required to temporarily perform the
duties of a higher classification level for at least
the qualifying period specified in the collective
agreement applicable to the employee’s
substantive position.
During an acting assignment, the employee is
subject to the terms and conditions applicable to
the higher position.
To determine the applicable step at which you will
be placed in the pay range of the acting
appointment, add the equivalent of the smallest
increment in the acting scale to your current
salary. You will be placed at the closest step in
the acting range (this step must be higher than
your current salary).
Note: Should a new collective agreement be
signed during an acting assignment, the
employee in receipt of acting pay is entitled to a
recalculation of the acting pay.
An employee continues to be entitled to pay
increments in the substantive position while on an
acting assignment. An increment given in the
substantive position will be used to recalculate
the rate of pay in the higher classification level.
An employee is also eligible to receive pay
increments in the higher classification level at the
end of each increment period. Should an
increment become necessary because of a
recalculation following reception of an increment
in the substantive position, the anniversary date
of the acting position becomes the date of
reception of the new increment.
Maternity and Parental Leave
When an employee has, on the day immediately
before proceeding on maternity or parental leave
without pay, been on an acting assignment for at
least four (4) months, the rate of pay used for
calculations will be the acting pay. This rate of
pay will apply for the whole period of
maternity/parental leave, even though the acting
assignment may end during the leave period.
Union Dues
An employee who is in an acting position will pay
union dues in the following manner:
if the acting position is in a group
represented by the same bargaining
agent, there is no break in union dues
check-off.
if the acting position is in a group
represented by another bargaining agent,
union dues will be paid to the new
bargaining agent starting on the first day
of the complete calendar month following
the effective date of the acting
assignment.
if the acting position is in a group that is
not represented by any bargaining agent,
union dues will cease on the first day of
the complete calendar month following
the effective date of the acting
assignment.
pay the employee was receiving immediately
before the appointment. On appointment to a
lower classification level for reasons other than
those stated above, the employee will be paid at
the rate of pay nearest to but not less than the
rate of pay the employee was receiving
immediately before the appointment.
DEPLOYMENT OR TRANSFER BY APPOINTMENT
When an employee is appointed to a position
where the difference between the maximum of
the substantive position and the new position is
less than the smallest increment in the
substantive position (or less than 4% if there is
no incremental scale), the employee will receive
the rate of pay nearest but not less than the rate
currently received. Note that in such cases, the
anniversary date remains the same as in the
substantive position.
DOWNWARD RECLASSIFICATION
A downward reclassification occurs when the
position is reclassified to a group or level having
a lower attainable maximum rate of pay;
In such cases, the incumbent shall retain the
rates of pay of the former group and level until (1)
the employee vacates the position, (2) the
attainable maximum of the reclassified level
becomes greater than that applicable to the
former classification level or (3) the employee
accepts an appointment to a lower classification
level for reasons other than incompetence of
incapacity.
UPWARD RECLASSIFICATION
PROMOTION
On promotion, an employee shall be entitled to
the rate of pay nearest the rate of pay received
immediately before the appointment, which gives
an increase in pay that is at least equal to the
lowest pay increment in the new scale (or 4% of
the maximum rate of pay when there is only one
rate).
DEMOTION
When an employee is appointed to a position that
has a lower maximum rate of pay than the
maximum rate of pay applicable in the
substantive level for reasons of incompetence or
incapacity, the employee will be paid at the rate
of pay nearest to but not more than the rate of
On conversion to a group and/or level or a new
classification plan and/or pay structure having a
higher maximum rate of pay, the employee shall
be paid the rate of pay nearest to but not less
than the rate previously received.
Note that when implementing a new classification
plan or pay structure, conversion rules are set
during the conversion process.