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Civil servants receive pay based on the U.S. Federal General Schedule. A pay schedule    is a chart that shows salary ranges for different levels (grades) of positions vertically and for different ranks (steps) of seniority horizontally. The Pendleton Act of 1883 allowed for this type of pay schedule, but the modern version of the schedule emerged in the 1940s and was refined in the 1990s. The modern General Schedule includes fifteen grades, each with ten steps ( [link] ). The grades reflect the different required competencies, education standards, skills, and experiences for the various civil service positions. Grades GS-1 and GS-2 require very little education, experience, and skills and pay little. Grades GS-3 through GS-7 and GS-8 through GS-12 require ascending levels of education and pay increasingly more. Grades GS-13 through GS-15 require specific, specialized experience and education, and these job levels pay the most. When hired into a position at a specific grade, employees are typically paid at the first step of that grade, the lowest allowable pay. Over time, assuming they receive satisfactory assessment ratings, they will progress through the various levels. Many careers allow for the civil servants to ascend through the grades of the specific career as well.

https://www.opm.gov/policy-data-oversight/classification-qualifications/general-schedule-qualification-policies/#url=General-Policies (May 16, 2016).

This table has two columns. The first row is a header row and labels the columns “Grade” and “Pay Range (Steps 1 through 10).” From left to right, the rows beneath the header read “GS-1, $18,343 to $22,941,” “GS-2, $20,623 to $25,959,” “GS-3, $22,502 to $29,252,” “GS-4, $25,261 to $32,839,” “GS-5, $28,262 to $36,740,” “GS-6, $31,504 to $40,954,” “GS-7, $35,009 to $45,512,” “GS-8, $38,771 to $50,399,” “GS-9, $42,823 to $55,666,” “GS-10, $47,158 to $61,306,” “GS-11, $51,811 to $67,354,” “GS-12, $62,101 to $80,731,” “GS-13, $73,846 to $96,004,” GS-14, $87,263 to $113,444,” and “GS-15, $102,646 to $133,444.”
The modern General Schedule is the predominant pay scale within the United States civil service and includes fifteen grades, each with ten steps. Each higher grade typically requires a higher level of education: GS-1 has no qualifying amount, GS-2 requires a high school diploma or equivalent, GS-5 requires four years of education beyond high school or a bachelor’s degree, GS-9 requires a master’s or equivalent graduate degree, and so on. At GS-13 and above, appropriate specialized experience is required for all positions.

The intention behind these hiring practices and structured pay systems is to create an environment in which those most likely to succeed are in fact those who are ultimately appointed. The systems almost naturally result in organizations composed of experts who dedicate their lives to their work and their agency. Equally important, however, are the drawbacks. The primary one is that permanent employees can become too independent of the elected leaders. While a degree of separation is intentional and desired, too much can result in bureaucracies that are insufficiently responsive to political change. Another downside is that the accepted expertise of individual bureaucrats can sometimes hide their own chauvinistic impulses. The merit system encouraged bureaucrats to turn to each other and their bureaucracies for support and stability. Severing the political ties common in the spoils system creates the potential for bureaucrats to steer actions toward their own preferences even if these contradict the designs of elected leaders.

Summary

The merit-based system of filling jobs in the government bureaucracy elevates ability and accountability over political loyalties. Unfortunately, this system also has its downsides. The most common complaint is that the bureaucrats are no longer as responsive to elected public officials as they once had been. This, however, may be a necessary tradeoff for the level of efficiency and specialization necessary in the modern world.

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Source:  OpenStax, American government. OpenStax CNX. Dec 05, 2016 Download for free at http://cnx.org/content/col11995/1.15
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