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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 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.
Associated with the enlisted pay grades is a numbering system from the most junior enlisted sailor ("E-1") to the most senior enlisted sailor ("E-9"). This enlisted numbering system is the same across all six branches of the U.S. military. All E-1s through E-3s are known as seaman, fireman, airman, constructionman, or hospitalman.
Enlisted service members (sailors) are often referred to by a combination of both their rating and their pay-grade. For example, if a sailor has the pay-grade of E-5 (rank of petty officer second class) and the rating of boatswain's mate, then combining the two—boatswain's mate second class (BM2)—defines both rank and rating in formal ...
Many political appointees have had their pay rate frozen at lower levels. [3] According to 5 U.S.C. § 5318, at the beginning of the first pay period for any position under the Executive Schedule, the amount of pay will be adjusted and rounded to the nearest multiple of US$100. If this amount is found to be midway between multiples of $100 ...