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Frequently Asked Questions Pay & Leave

When should agencies use the alternate method for the two-step promotion rule?

Agencies should use the alternate method when an employee is covered by different pay schedules before and after promotion if the alternate method produces a higher payable rate upon promotion than the standard method. See Promotion Examples 3 and 5.

Agencies also may use the alternate method even if the alternate method produces a lower payable rate than the standard method. Under this circumstance, the agency must determine under 5 CFR 531.214(d)(2)(iii) that it would be inappropriate to use the standard method based on a finding that the higher pay for the position before promotion is not sufficiently related to the knowledge and skills required for the position after promotion.

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