Promotion (PSTCER 24.(1))
(Publié aussi en français sous le titre Promotion (article 24.1) du RCEFP))
Table of Contents
1.	Terms and definitions
2.	Salary on promotion
2.1	Procedures

1.	Terms and definitions
The following words and phrases used in this section have the same meaning as the ones in the Glossary of terms and definitions found under the Compensation and Pay Administration heading. In order to ensure consistency and accuracy in terminology, the user may click on any of these terms for the definition.
allowance (indemnité)
annual rate (taux annuel)
appointment document (document de nomination)
certificate of appointment (certificat de nomination)
equalization adjustment (rajustement paritaire)
hourly rate (of pay) (taux (de rémunération) horaire)
lowest pay increment (plus faible augmentation (de l'échelle de rémunération))
one rate of pay (un taux de rémunération)
2.	Salary on promotion
On promotion, an employee is entitled to the rate of pay nearest the rate of pay received immediately before the appointment, which gives an increase in pay that is at least equal to the lowest pay increment for the new position. The following applies:
•	where the new position has more than one rate of pay; or
•	an amount equal to at least four per cent (4%) of the maximum rate of pay for the position held by the employee immediately prior to that appointment, where the position to which the employee is appointed has only one rate of pay.
Former employees are not to be paid retroactivity on promotion, unless the certificate of appointment is authorized prior to the effective date of the termination of employment.

Retroactive promotion of a former employee
A classification decision was rendered for a position, reclassifying it from an AS‑02 to an AS‑03 with an effective date of April 1, 2003. The TB 330‑167 classification document is dated July 22, 2003, and the letter advising the former employee of the classification decision is dated July 28, 2003.
The incumbent of the position resigned and was struck-off strength (SOS) on Saturday, May 31, 2003.
The certificate of appointment in this example is the letter advising the employee of the classification decision, which is dated after the SOS date of May 31, 2003. The former employee is not to be paid the retroactive payment for the period from April 1, 2003, to May 30, 2003.	

When performing calculations where there is a difference in the authorized salary, convert the salaries to the basis of the new group and level prior to the calculation.
Annual salary to hourly salary
Promoted from a classification with authorized annual rates of pay to a classification with rates of pay authorized on an hourly basis.
Convert the annual rate to an hourly rate for calculation purposes.
For example, divide the annual rate by 1956.6 for a 37.50 hours scheduled work week, or 2087.04 for a 40 hours scheduled work week.	

Hourly salary to annual salary
Promoted from a classification with authorized hourly rates of pay to a classification with rates of pay authorized on an annual basis.
Convert the hourly rate to an annual rate for calculation purposes.
For example, multiply the hourly rate by 1956.6 for a 37.50 hours scheduled work week, or 2087.04 for a 40 hours scheduled work week.	

2.1	Procedures
Determine the lowest pay increment of the position to which the person is appointed. For a position where there is only a minimum and a maximum rate of pay, the lowest pay increment is predetermined within the pay notes of the relevant collective agreement.
Determine the difference between the maximums of the positions appointed to and from.
If the difference between the maximums of the positions exceeds the lowest pay increment of the new position when it has more than one rate of pay, or at least equal to four per cent (4%) of the maximum rate of pay for the position held by the employee immediately prior to that appointment, where the position to which the employee is appointed has only one rate of pay, then the appointment constitutes a promotion.
Add the amount of the lowest pay increment to the rate of pay applicable to the position held immediately prior to the appointment.
Select the rate of pay in the pay range for that position, which is nearest to but not less than that calculated above.
History
Prior to July 29, 1998, if one or both positions were subject to an equalization adjustment, the annual equalization amount was added to each of the rates of pay of the applicable position before applying the above procedures.	

Note 1: When calculating the rate of pay on promotion, it must be noted if the employee is in receipt of any allowances that form part of the rate of pay. For instance, supervisory differential and inmate training differential form part of the rate of pay and would be included in the calculation of the rate of pay on promotion. To determine whether or not a specific allowance is included in the calculation, reference the authority for the allowance, such as the collective agreement.
Note 2: If the rate of pay on promotion is not the maximum salary for the group and level, the employee may be entitled to a salary increment. Determine the employee’s next pay increment date on promotion. For more information, refer to the Pay increments module.
Note 3: Once the salary on appointment is established based on the substantive level and, if acting pay is received immediately prior to the appointment, refer to the Acting Assignments module.

Example 1
A full-time employee in a GT‑07 position who is earning $74,759 per annum is appointed to a represented AS‑07 position, which is effective on February 10, 2003. The employee’s certificate of appointment is dated January 24, 2003.	

GT-07: Subject to a collective agreement signed on November 19, 2001.
A	Effective June 22, 2000	
B	Effective June 22, 2001	
C	Effective June 22, 2002	

$	62,542	64,646	66,750	68,749	71,498	
A	64,543	66,715	68,886	70,949	73,786	
B	66,350	68,583	70,815	72,936	75,852	
C	68,009	70,298	72,585	74,759	77,748	

AS-07: Subject to a collective agreement signed on November 19, 2001.
A	Effective June 21, 2000	
X	Pay Adjustment – Effective June 21, 2001	
B	Effective June 21, 2001	
C	Effective June 21, 2002	

						Lowest pay increment	
$	64,629		to		75,225		
A	66,697		to		77,632		
X	68,225	70,818	73,509	75,714	78,007		
B	70,135	72,801	75,567	77,834	80,191		
C	71,888	74,621	77,456	79,780	82,196	2,324	

Calculation
•	GT‑07 rate of pay on February 10, 2003	$74,759 (4th step)	
•	Difference between the maximums (AS‑07 and GT‑07)	$4,448 ($82,196 - $77,748)	
•	Since the difference between the maximums is $4,448, which is greater than the lowest pay increment of $2,324 of the represented AS‑07, the appointment is a promotion. The employee’s rate of pay is determined by adding the lowest pay increment of the AS‑07 to the GT‑07 salary. The employee is paid $77,456, which is the rate of pay nearest to but not less than $77,083.	$77,456 (3rd step)
($74,759 + $2,324 = $77,083)	

The employee’s salary on appointment, which is effective on February 10, 2003, is $77,456. This is the 3rd step in the represented AS‑07 salary scale.
Example 2
A full-time employee in a GS‑STS‑03 position in pay zone 1 who is earning $17.06 an hour is appointed to a CR‑04 position, which is effective on April 14, 2003. The employee’s certificate of appointment is dated March 20, 2003.	

GS‑STS‑03, Pay zone 1: A scheduled work week (SWW) of 40 hours a week.
Subject to a collective agreement signed on November 19, 2001.
Zone 1	British Columbia, Yukon, Nunavut and Northwest Territories	
Zone 2	Atlantic, Quebec and Ontario	
Zone 3	Manitoba, Saskatchewan and Alberta	

	Hourly rates of pay	
A	Effective August 5, 2000	
B	Effective August 5, 2001	
C	Effective August 5, 2002	

		ZONE		
	1	2	3	
$	15.69	14.33	14.25	
A	16.19	14.79	14.71	
B	16.64	15.20	15.12	
C	17.06	15.58	15.50	

CR‑04: A scheduled work week (SWW) of 37.50 hours per week
Subject to a collective agreement signed on November 19, 2001.
A	Effective June 21, 2000	
B	Effective June 21, 2001	
C	Effective June 21, 2002	

					Lowest pay increment	
$	33,523	34,413	35,301	36,185		
A	34,596	35,514	36,431	37,343		
B	35,565	36,508	37,451	38,389		
C	36,454	37,421	38,387	39,349	962	

Before applying the above procedures, the hourly rate of pay of the GS‑STS‑03 in pay zone 1 must be converted to an equivalent annual rate of pay.
The formula is as follows:
52.176 weeks x scheduled work week (SWW) x hourly rate of pay
Using the above formula, the equivalent annual salary for the GS‑STS‑03 in pay zone 1 is $35,604.90 (52.176 weeks x 40 hours per week x $17.06 hourly rate).
This annual rate of pay is regarded as a maximum when applying the promotion regulations to determine the annual rate in the new classification.

Calculation
•	GS‑STS‑03 in pay zone 1 annual rate of pay on April 14, 2003	$35,604.90	
•	Difference between the maximums (CR‑04 and GS‑STS-03)	$3,744.10 ($39,349 - $35,604.90)	
•	Since the difference between the maximums is $3,744.10, which is greater than the lowest pay increment of $962 of the represented CR‑04, the appointment is a promotion. The employee’s rate of pay is determined by adding the lowest pay increment of the CR‑04 to the GS‑STS‑03 salary, which is the rate of pay nearest to but not less than $36,566.90.	$36,454 (minimum)
($35,604.90 + $962 = $35,566.90)	

The employee’s salary on appointment, which is effective on April 14, 2003, is $36,454. This is the minimum of the CR‑04 salary scale.
Example 3
A full-time employee in a GT‑01 position who is earning $33,064 (minimum) per annum is appointed to a MA‑01 position, which is effective on April 14, 2003. The employee’s certificate of appointment is dated April 7, 2003.	

GT‑01: Subject to a collective agreement signed on November 19, 2001.
A	Effective June 22, 2000	
B	Effective June 22, 2001	
C	Effective June 22, 2002	

$	30,406	31,243	32,080	32,913	34,229	
A	31,379	32,243	33,107	33,966	35,324	
B	32,258	33,146	34,034	34,917	36,313	
C	33,064	33,975	34,885	35,790	37,221	

MA‑01: Subject to a collective agreement signed on December 12, 2001.
A	Effective October 1, 2000	
B	Effective October 1, 2001	
C	Effective October 1, 2002	

				Lowest pay increment
(Pay Notes (1))	
$	22,623	to	38,806		
A	23,347	to	40,048		
B	24,001	to	41,169		
C	24,601	to	42,198	minimum pay increase shall be 
three hundred dollars ($300)	

Calculation
•	GT‑01 rate of pay on April 14, 2003	$33,064 (minimum)	
•	Difference between the maximums (MA‑01 and GT‑01)	$4,977 ($42,198 - $37,221)	
•	Since the difference between the maximums is $4,977, which is greater than the lowest pay increment of $300 of the MA‑01, then the appointment is a promotion. The employee’s rate of pay is determined by adding the lowest pay increment of the MA‑01 to the GT‑01 salary. The employee is paid $33,364, which is the rate of pay nearest to but not less than $33,364.	$33,364
($33,064 + $300 = $33,364)	

The employee’s salary on appointment, which is effective on April 14, 2003, is $33,364. This amount is within the MA‑01 pay rate scale.