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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 fiscal year 2010 president's budget request for a 2.9% military pay raise was consistent with this formula. However, Congress, in fiscal years 2004, 2005, 2006, 2008, and 2009 approved the pay raise as the ECI increase plus 0.5%. The 2007 pay raise was equal to the ECI. A military pay raise larger than the permanent formula is not uncommon ...
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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.
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.
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.
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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.