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Employee Handbook

Compensation (Pay) Plan

The Personnel Cabinet in consultation with the appointing authorities and the Office of the State Budget Director, prepares, maintains and revises the compensation (pay) plan. Three basic elements are involved in the compensation plan: 

    1. The relationship of the levels of responsibilities and duties of the various classifications;
    2. What other employers pay for similar work; and
    3. The financial resources (tax dollars) available to pay for the work performed.

Merit System employees are assigned to job classes according to their duties and responsibilities. Each job class in the classified service is assigned to one of the pay grades in the classified service salary schedule (Grades 3-20). Most job classes in the unclassified service are assigned to one of the pay grades in the unclassified service salary schedule (Grades 5-22). Pay grades are assigned based on similarity of the level of duties and responsibilities compared to other state job classes or by point factoring. Salary surveys of other employers determine the pay for similar levels of work. Each pay grade has an entry-level wage (the lowest salary that state government pays for work in jobs assigned to that pay grade) and a midpoint wage (the maximum salary at which an experienced applicant may be appointed).

The SALARY SCHEDULE may be adjusted when salary surveys indicate that job market salaries have changed AND state revenues allow budget appropriations for the purpose.

Your salary depends on a number of factors: (1) your job classification, (2) your seniority and (3) your career path.

Your starting salary is normally at the minimum of the pay range assigned to your classification. In some cases an agency may request to start an employee above the range minimum based on an applicant’s unique background or difficulty in recruiting for the class.

At the successful completion of initial probation period (see glossary), an employee will receive a probationary increase of five percent (5%). This sets the employee’s increment date for as long as an employee is continuously employed not including extensive leave without pay.

As you gain status (upon completion of probation) and seniority, you will be eligible for annual salary increases (raises) to the degree that the state’s budget and regulations allow.

The compensation (pay) plan is closely related to the classification system, but it is distinctly different.​