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- The wage grade pay scale is a pay-setting system covering federal employees paid by the hour1. The system aims to ensure that employees who do the same kind of work in a local area get the same rate of pay1. The system has different grades based on the level of skill and responsibility of the job2. Each grade has 10 steps that are worth about 3 percent of the salary2. Employees can move up the steps based on their performance and longevity2.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The federal wage system — sometimes called the wage grade or prevailing rate system — is a pay-setting system covering federal employees paid by the hour. The aim is to make sure that federal trade, craft, and laboring employees in a local wage area who do the same kind of work get the same rate of pay.www.fedweek.com/ask/federal-pay/wage-system/Each grade has 10 step rates (steps 1-10) that are each worth approximately 3 percent of the employee’s salary. Within-grade step increases are based on an acceptable level of performance and longevity (waiting periods of 1 year at steps 1-3, 2 years at steps 4-6, and 3 years at steps 7-9).www.opm.gov/policy-data-oversight/pay-leave/pay …
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