Within Grade Increase (WG/GS)

Within-grade increases (WGIs), or step increases, are periodic increases in a General Schedule (GS) or Wage Grade (WG) employee’s rate of basic pay from one step of the grade of his or her position to the next higher step of that grade.

Employees who occupy permanent positions earn WGIs upon meeting the following three requirements established by law:

• The employee’s performance must be at an acceptable level of competence. To meet this requirement, an employee’s most recent performance rating of record must be at least Level 3 ("Fully Successful" or equivalent). In most agencies, this eligibility requires a rating of fully successful or equivalent. Depending on the nature of an agency's performance management system, it is not unusual for an employee to be above the unacceptable level but below the level required for a within-grade increase.
• The employee must have completed the required waiting period for advancement to the next higher step.
• The employee must not have received an "equivalent increase" in pay during the waiting period. (See 5 CFR 531.407.)

A WGI waiting period begins upon (1) first appointment in the Federal service, (2) receiving an "equivalent increase," or (3) after a period of nonpay status and/or a break in service in excess of 52 calendar weeks.

Required waiting periods for step increases

GENERAL SCHEDULE (GS)

WAGE GRADE (WG)

Once a within-grade increase has been denied, a supervisor has the flexibility to approve a within-grade increase at any time thereafter once the employee is determined to be performing at an acceptable level of competence, but the agency must consider the employee's performance at least every 52 weeks after the denial.