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Pay grades [1] are used by the eight structurally organized uniformed services of the United States [2] (Army, Marine Corps, Navy, Air Force, Space Force, Coast Guard, Public Health Service Commissioned Corps, and NOAA Commissioned Officer Corps), as well as the Maritime Service, to determine wages and benefits based on the corresponding military rank of a member of the services.
The pay scale was originally created with the purpose of keeping federal salaries in line with equivalent private sector jobs. Although never the intent, the GS pay scale does a good job of ensuring equal pay for equal work by reducing pay gaps between men, women, and minorities, in accordance with another, separate law, the Equal Pay Act of 1963.
A pay grade is a unit in systems of monetary compensation for employment. It is commonly used in public service, both civil and military , but also for companies of the private sector. Pay grades facilitate the employment process by providing a fixed framework of salary ranges, as opposed to a free negotiation.
Pay will be largely based on rank, which goes from E-1 to E-9 for enlisted members, O-1 to O-10 for commissioned officers and W-1 to W-5 for warrant officers. Commissioned and warrant officers will be paid more than their enlisted counterparts. Early pay grade promotions are quite frequent, but promotions past E-4 will be less frequent.
The first grade would contain .6% of the army's enlisted men, the second grade 1.8%, the third grade 2%, the fourth and fifth grades 9.5%, the sixth grade 25% and the remaining 51.6% in the seventh grade. Men in the sixth and seventh grades could be rated as specialists and get extra pay.
Before the FWS, there was no central authority to establish wage equity for Federal trade, craft, and laboring employees. In 1965, President Lyndon B. Johnson ordered the former Civil Service Commission to work with Federal agencies and labor organizations to study the different agency systems and combine them into a single wage system that would be sensible and just.