Click here to link to the OPM home pageFAQs

Performance Management and Within-Grade Increases (WGI) FAQs

The term "within-grade increase" is synonymous with the term "step increase" and means a periodic increase in a Federal employee's rate of basic pay from one step or rate of the grade of his or her position to the next higher step of that grade or next higher rate within the grade. Employees must be performing at an acceptable level of competence in order to receive a within-grade increase. Some frequently asked questions about within-grade increases in regard to the Federal employee performance appraisal regulations include:

List of Questions

Can an agency restrict the application of a rating of record that was prepared solely to reflect current performance for the denial of a within-grade increase?
Under an appraisal program with two summary levels (Pass/Fail), can an agency establish some criteria other than, or in addition to, the Level 3 (Fully Successful or equivalent, e.g., pass) rating of record for achieving an acceptable level of competence?
When can an acceptable level of competence determination be delayed?
Can an agency delay a within-grade determination while an employee completes a performance improvement period (PIP) if no rating of record was given at the beginning of the PIP?

?

Can an agency restrict the application of a rating of record that was prepared solely to reflect current performance for the denial of a within-grade increase?
No. When a within-grade increase determination is not consistent with an employee's most recent rating of record (i.e., current performance is not accurately reflected by the rating of record prepared at the end of the most recently completed appraisal period), regulation requires the preparation of a more current rating of record. However, there is no provision for the agency to limit the application of the newer rating of record to the within-grade increase determination only.

Back to the TopBack to FAQs Listing


?

Under an appraisal program with two summary levels (Pass/Fail), can an agency establish some criteria other than, or in addition to, the Level 3 (Fully Successful or equivalent, e.g., pass) rating of record for achieving an acceptable level of competence?
No. Regulations at section 531.404(a) of title 5, Code of Federal Regulations, continue to require a rating of record of at least Level 3 (Fully Successful or equivalent) as the basis for the acceptable level of competence determination. There is no provision to consider anything other than the rating of record when making an acceptable level of competence determination.

Back to the TopBack to FAQs Listing


?

When can an acceptable level of competence determination be delayed?
An acceptable level of competence determination can be delayed for only two reasons:
  • when an employee has not had the minimum period of time to demonstrate acceptable performance on his or her elements and standards; and
  • when an employee is reduced in grade because of unacceptable performance to a position in which he or she is eligible for a within-grade increase or will become eligible within the minimum appraisal period.

Back to the TopBack to FAQs Listing


?

Can an agency delay a within-grade determination while an employee completes a performance improvement period (PIP) if no rating of record was given at the beginning of the PIP?
No. The regulations specifically restrict the delay of a within-grade determination to the two conditions stated in the regulations (and reviewed in the previous question). Consideration was given to permitting the delay of a within-grade determination for employees completing a PIP, but the decision was made not to allow this since it would give an unfair advantage to an employee whose performance has been determined to be unacceptable (a condition upon which the PIP is based) over employees whose most recent rating of record is Level 2 (marginal, minimally successful, etc.) and who are not eligible for a within-grade increase. There is no requirement to give an employee a rating of record before beginning a PIP. If a within-grade increase determination is due during an employee's PIP, the agency needs to make sure it reviews the employee's most recent rating of record and determines whether a new rating of record is needed to support the within-grade decision. If the last rating of record does not support the within-grade determination (i.e., the rating was Level 3 (Fully Successful or equivalent) or better and performance later reached the unacceptable level triggering the PIP), a new rating of record must be given to support a denial of the within-grade increase. If the agency chooses to use the last rating of record of Level 3 (Fully Successful or equivalent) or better and grant the within-grade, they need to realize they are certifying the employee as performing at that level and jeopardizing any future performance-based action that might have been based on performance during that time period.

Back to the TopBack to FAQs Listing

Overview Resources By Topic Whats New Additional Resources Main Menu