Over-Range Pay

This directive covers factors to consider and actions a deputy head may take if a management employee’s salary is over-range.

A management employee’s salary is over-range when it exceeds the maximum salary of the pay band or pay zone for the assigned class.

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Over-Range Pay Treatment

When a management employee’s salary is over-range, the deputy head may reduce the salary using one of the following three strategies:

  • The manager may be given up to 12 months of notice that the deputy head intends to reduce the salary to within the pay band or pay zone or to a reasonable over-range salary. The salary may be reduced immediately following the notice or the reduction may be phased in until the salary falls within the pay band or pay zone.

  • With the manager’s agreement, the deputy head may authorize a lump sum payment instead of giving notice of the salary reduction. The lump sum payment is the difference between the over-range salary and the reduced salary for a period of up to 12 months.

  • The deputy head may maintain the employee’s salary until it falls within the pay band or pay zone of the assigned class.

The following factors will be considered when determining how to treat an over-range salary:

  • the amount by which the over-range pay exceeds the maximum of the pay band or pay zone for the assigned class

  • proximity to retirement

  • length of service and time the employee will be or has been held over-range

  • salary relative to peers, subordinates, and supervisor

  • difference in level of work

When a management employee's salary is over the maximum of the pay band or pay zone for the assigned class, the manager is eligible for additional compensation when:

  • the manager's position qualifies for a market modifier.  The market modifier shall be added to the manager's base salary; or

  • the manager qualifies for an achievement bonus which is paid as a non-pensionable lump sum.

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Related Information

Refer to directive Salary Determination for information on treating over-range salaries of non-management employees.

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About this Directive

Authority:   Public Service Employment Regulation
Application:   Organizations under the Public Service Act
Effective Date:   1 April 1998
Contact:   Compensation

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