The Navajo Nation

PROCEDURES
EXECUTIVE AND LEGISLATIVE BRANCHES

To provide guidelines for implementing step increases for eligible employees based on job performance pursuant to the Personnel Policies Manual.

1. These procedures apply to all regular status (full-time and part-time) employees within the Executive and Legislative Branches of the Navajo Nation government.
    
2. Exceptions:  These procedures do not apply to Public Employment Program (PEP), Summer Youth Employment or temporary employees.  These procedures also do not apply to positions with salaries that are set by law and those assigned grade step 999A.

1. The following criteria will be used to determine eligibility for step increases:
    
   1. Employees at Steps A - E are eligible after one year from the date of last increase or on their anniversary date whichever is later; employees at Steps F - I are eligible after two years from the date of last increase or on their anniversary date whichever is later; and employees at Steps J and K are eligible after three years from the date of last increase or anniversary date whichever is later.
       
   2. A performance appraisal must have been completed and submitted to the Department of Personnel Management (DPM) within 60 calendar days after the anniversary date for the applicable rating period.  If  the 60th calendar day falls on a non-workday then the due date will be the following workday.
       
   3. Employee must have received an overall rating of "Significantly Exceeds Standards" or "Outstanding" on the performance appraisal which covers the last 6 months of the applicable rating period.
       
   4. Employee must have been in his/her current position and on the job for the last 6 months during the current rating period.
       
   5. Employee must have a performance appraisal for the entire rating period.  If the employee occupied more than one position within the rating period, he/she must have received an appraisal for each position.
       
   6. An Employee Performance Appraisal Form (EPAF) must have been completed and submitted for all eligible employees.
       
   7. A Step Increase Recommendation/Approval Form must be completed by the supervisor and submitted to Office of Controller or Office of Management and Budget for verification of funds availability within 80 calendar days after the anniversary date for the applicable rating period.
       
   8. After approval by Office of the Controller or Office of Management and Budget, the Step Increase Recommendation/Approval Form must be submitted to the Department of Personnel Management within 90 calendar days after the anniversary date for the applicable rating period for processing.  If the 90th calendar day falls on a non-workday then the due date will be the following workday.
       
   9. An employee must not have received a merit pay bonus for the same rating period.
       
   10. Termination of employment prior to approval of step increase by DPM voids the employee's eligibility to receive a step increase.

The following procedures are to be utilized when implementing step increases.

1. Programs are required to identify funds within their budget(s) for the implementation of step increases.  A budget transfer or modification will be required for each sub-account.
    
   1. To determine the total amount needed for transfer, (difference between the current pay rate and the new pay rate), the following is to be utilized when calculating the amount needed for the step increase.  Funds for the fringe rate should also be included.
       
      1. Determine the employee's anniversary date.  (See Definitions)
          
      2. From the anniversary date to the end of the applicable budget period, determine the number of hours the employee is to be paid at the higher rate.
          
      3. Determine the dollar amount difference between the new hourly rate of pay and the old hourly rate of pay.
          
      4. Multiply the hours to be paid at the new hourly rate (Step a.2. above) by the dollar amount difference calculated (Step a.3. above).
          
2. Programs with Cost Allocated positions are to implement the step increase after all funding sources have made budget transfers to include the step increase.
    
3. DPM will prepare and process the PAF pursuant to established schedules and PAF processing guidelines.

1. Request for Budget Transfer Form
2. Personnel Action Form (PAF)