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W S R -- OmCIfCS*fc MTOIIMJK- „ a CHtHIES, AHEOWMICES, ETC. ^O q Salary Trends FEDERAL CLASSIFIED EMPLOYEES, 1939-64 Bulletin No. 1444 UNITED STATES DEPARTMENT OF LABOR W. Willard Wirtz, Secretary BU RE AU OF LABOR S T A TIS TIC S Ewan Clague, Commissioner Salary Trends FEDERAL CLASSIFIED EMPLOYEES, 1939-64 Bulletin No. 1444 M ay 1965 CS5J UNITED STATES DEPARTMENT OF LABOR W. Willard Wirtz, Secretary b u r ea u o f la b o r s ta tis tic s Ewan Clague, Commissioner For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C., 20402 - Price 35 cents Preface T h is r e p o r t p r e s e n t s in d e x e s tr a c i n g s a l a r y tr e n d s fo r F e d e r a l C l a s s i f i e d E m p lo y e e s fo r the p e r i o d 1939—64. It in c lu d e s m a t e r i a l s p r e v i o u s l y p u b lish e d a s Wage M o v e m e n ts, S e r i e s 3, No. 6, " F e d e r a l C l a s s i f i e d E m p l o y e e s : S a l a r y T r e n d s , 1939—5 0 " arid s e v e n s u p p le m e n t a r y r e p o r t s fr o m the Monthly L a b o r Review of May 1951, M ay 1952, S e p t e m b e r 1953, A p r i l 1955, F e b r u a r y 1959, M ay 1961, and O cto b er 1964, and two a d d itio n a l s u p p le m e n t s fo r 1957 and 1960—61, which bro u g h t the o r i g i n al study up to date through 1964. T h is r e v i s e d r e p o r t is intended m e r e l y to in c o r p o r a t e the in fo r m a tio n fo r the e n ti r e p e r i o d into one docum en t r a t h e r than to p r e s e n t any in fo r m a t io n not p r e v i o u s l y p u b lish e d . The ap p en dix to th is r e p o r t e x p la in s the c o v e r a g e , m e t h o d s , and s o u r c e of d a ta u s e d f o r the s t u d i e s . A de s c r ip t i o n of the c a lc u la tio n of the in d e x e s is a l s o in cluded. The s a l a r y tr e n d s p r o g r a m i s d ir e c t e d by L ily M a r y D avid, C h ief of the D iv isio n of Wage E c o n o m i c s , un der the g e n e r a l d ir e c t io n of L . R. L i n s e n m a y e r , A s s i s t a n t C o m m i s s i o n e r f o r W ages and In d u st r ia l R e la t io n s . T h is r e p o r t w as p r e p a r e d un der the s u p e r v i s i o n of A lb e r t A. B e lm a n . The a n a l y s i s fo r the p e r i o d I960 to 1964 w a s p r e p a r e d by Je a n n e G r i e s t . iii Contents Page Salary trends: Federal classified employees, 1939—50 _____________________________ 1 Federal classified employees' salary changes: 1950- 51 _______________________________________________________ 1951- 52 _______________________________________________________ 1951-54 _________________________________________________________ 1954- 56 _______________________________________________________ 1957 ___________________________________________________________ 1955- 58 _______________________________________________________ 1958-60 ________________________________________________________ 1960-61 ________________________________________________________ 1962-64 ________________________________________________________ 6 9 12 15 20 22 26 30 37 Appendix: Scope and method of survey 47 Salary Trends: Federal Classified Employees, 1939—50 salary rates occurred after June 1945. Con gressional action increased basic pay scales in July 1945, in July 1946, and in July 1948; in addition, a revision of the classification system in October 1949 included some changes in these basic scales. Up to June 1945, both basic pay scales and average salary rates had risen only about 1 percent as a result of increased scales for certain of the lower grades.3 Most of the rise in average salary rates which is attributable to merit increases also occurred after the war, although legislation in 1941 provided uniform standards for merit increases in pay for those remaining in the same position more than a specified amount of time.4 During World War II, force expansion and rapid turn-over, which re quired hiring large numbers of workers at mini mum grade rates, caused a decline of average pay in some grades.5 After the war, reduced Federal employment under a policy of seniority retention augmented the effect of merit increases; conse quently, average salaries in each grade advanced somewhat more than basic pay scales. B a s i c s a l a r y s c a l e s of Federal classified employ ees increased 55 percent, on the average, between August 1939 and July 1950. The merit increases in pay within the same grade (occupational classi fication) added to the rise in basic scales raised average salary rates 60 percent for this periou. Average salaries showed an 83-percent increase; this third measure of salary changes takes into account the growth in the proportion of workers at higher salary rates as well as basic scale and merit increases. The rise in basic scales and salary rates, August 1939 to July 1950, lagged behind the increase in the Consumers’ Price Index; aver age salaries rose slightly more than the index. Salaries discussed here are those of about 800,000 per annum employees subject to the Federal classification acts; these workers perform mainly clerical, administrative, and professional functions.1 The present study is the third in a series presenting indexes of wage and salary rates of various groups of workers in nonmanufacturing employment.2 For Federal classified workers, the salary rate indexes reflect changes in basic salary scales and merit increases within the same occupa tional classification. However, shifts in occu pational composition resulting from changes and expansion in governmental activity during the period covered by this repprt have affected average salaries as distinguished from salary rates. Con sequently, indexes of average salaries, reflecting tne combined effect of all these factors, are also presented. 1 In addition the data include smaller groups in so-called subprofessional categories and in craft, protective, and custodial jobs. The other groups of Federal civilian employees, excluded from the present report, are the per diem workers, postal employees, and the so-called “ blue collar” workers whose earnings are filed by wage-board action. ^ Previous studies relate to policemen and firemen in large cities (Monthly Labor Review, June 1950, p. 633), and urban public school teachers (Monthly Labor Review, March 1951, p. 286). 3 Grades CPC (crafts, protective, custodial) 1-8 and P ? (subprofessional) 1 and 2. * Prior to 1941, increases in pay to workers within the same grade were determined by administrative action subject to certain limitations on their effect on individual agency payroll costs. In 1941, they were made auto matic, providing a certain efficiency rating was obtained. For a description of legislation and regulations affecting salaries and working conditions of workers covered by the Classification Acts see Monthly Labor Review, March 1951 (p. 296). 5 The contrast between the two periods illustrates the variation in the net effect of these merit increases that occur from time to time depending on whether Federal employment is expanded or contracted and on whether there are opportunities for promotion. New workers or workers promoted to new jobs are generally paid at the minimum scales for the grade and hence the average salaries for a given grade will be reduced in periods of expansion. In periods of contraction workers with greater seniority, who have received more merit increases in pay than new workers, are retained; hence, average salary rates will increase even in the absence of changes in basic pay scales. Since the effect of either merit increases or changes in grade composition on Federal workers’ pay will vary from period to period, depending on rates of hiring and promotion, there is interest in a measure of salaries unaffected by either of these lactors. Accordingly, a Civil Service Commission measure of basic salary changes alone is incor porated in table 1. Basic Scales and Salary Rates Practically all of the 55-percent rise in basic pay scales and of the 60-percent increase in average 1 2 , ,, T a b l e 1.— Indexes o f basic pay scales average salary rates and average salaries o f workers covered by Federal Classification Acts 1989-50 Average salary rates 1 Basic pay scales 1 Period All workers General schedule 100.0 101.1 133.8 133.8 148.5 148.5 154.6 Aug. 1939 (base).......................................... June 30, 1945............. ................................... July 1,1946.................................................... July 1, 1947.................................................... July 15,1948.................................................. July 1,1949.................................................... July 1,1950.................................................... Crafts, protective, custodial All • workers 100.0 110.1 146.9 146.9 168.3 168.3 176.0 100 3101 133 135 151 152 160 100.0 100.2 131.9 131.9 145.7 145.7 151.5 General schedule Average salaries * Crafts, protective, custodial 100 3100 131 133 149 150 158 All workers 100 Genera] schedule 100 3 no (<) 149 152 176 177 189 Crafts, protective, custodial 100 (<) 143 150 168 170 183 136 144 160 163 175 100 (<) 154 154 178 180 192 3 Estimated by assuming the same distribution of employees among grade 3 1 Merit increases in pay witbin the same grade, which affect the averageand steps within grades in 1939 as in 1945—i. e., by assuming that the change salary-rate indexes, compiled by the Bureau of Labor Statistics, have been excluded from the basic-pay-scale indexes, compiled by the Civil Service in basic pay scales and in average salary rates was the same during this period. Commission. Both these index series exclude the effects of changes in the It is known that during this period there was little or no increase in average rates because of merit increases. distribution of workers among grades. * In addition to showing the effect of increases in basic salary scales and of * Not available. merit increases in pay within the same grade, these indexes are influenced by shifts in the proportion of workers among grades. The effect of merit raises on average salary rates in the postwar period was overshadowed by increases in basic pay scales, except between mid-1946 and mid-1947 and again between mid1948 and mid-1949, when pay scales were not changed. Between June 1945 and July 1946, salary rates increased by nearly 32 percent almost entirely because of 2 pay raises—effective July 1, 1945, and July 1, 1946, respectively. The rise in the 1948 indexes was dominated by the uni form $330 increase in scales put into effect in the first half of July 1948. By July 1, 1950, salaries had risen approximately 5 percent more (8 index points), primarily because of the Classification Act of October 1949. Although the principal objective of the classifi cation act was a realignment of salary scales, it did provide increases in minimum base rates rang ing, in most cases, from $100 to $175% It also added 3 grades to the top of the salary scale. Over the entire 1945-50 period covered, all but about a twelfth of the 58 percent rise in average salary rates resulted from increased basic pay scales. Salaries have increased proportionately more in the lower than in the higher grades. Most of the legislation either specifically provided higher percentage increases in pay for the lower than the higher grades of classified employees or uniform dollar increase in salaries regardless of grade; the latter, of course, resulted in a higher percentage increase for the lower salary levels. Thus, the indexes for the crafts, protective, and custodial group, whose salaries are at the lower end of Indexes of Salaries of Classified Federal Workers, July 1950 AUGUST 1939-100 EZZ2I Based on current dollars Based on dollars deflated by Consumers' Price Index AVERAGE SALARY RATES BASIC PAY SCALES 100- 89 . All Classified Workers 88 General Schedule 189 176 152 155 < AVERAGE SALARIES 183 106 102 192 175 101 — CPC All Classified Workers General Schedule CPC All Classified Workers General Schedule I 8— 100 CPC See footnotes on table I 3 the scale (CPC), are higher than those for the general schedule (GS). (See table 1.) Basic payscales for the “CPC” group rose 76 percent and for the “GS” group (formerly clerical, adminis trative, fiscal, and professional workers) 52 percent, between 1939 and 1950. Salary rate increases for these groups averaged, respectively, 89 percent and 58 percent. Within each of the two broad groups, increases for the lower salary grades were also greater, percentage-wise, than for the higher levels. This is illustrated for the clerical, administrative, fiscal, and professional group by table 2, which shows salary trends for 3 grades within the General Schedule (GS-3, GS-9, GS-13). Between 1939 and 1950, average pay rose 70 percent for grade GS-3, compared with less than 40 percent for GS-13. Table 2 also shows that for CPC-2 (the lowest grade in which a substantial number of workers are currently employed), pay nearly doubled. Changes between 1939 and 1950 for all GS and CPC grades are shown in table 3 • T able 2.— Changes in m inim um and average sa la ries 1 fo r selected grades under Federal C lassification A cts 1 9 8 9 -5 0 Service and grade , August June Julyl, Julyl, Julyl5, Julyl, Julyl, 1949 1950 1939 1945 1946 1947 1948 Indexes (August 1939=100) CPC-2: Minimum salary rate. Average salary1.......... 100 100 111 («) 156 151 156 153 187 183 187 183 196 198 Minimum salary rate. Average salary1.......... OS-9: Minimum salary rate. Average salary1.......... 100 100 100 <*) 134 133 134 136 154 157 154 158 164 170 100 100 100 (») 130 130 130 131 140 143 140 144 144 149 Minimum salary rate. Average salary1.......... 100 100 100 (*) 127 126 127 127 133 133 133 134 136 137 Dollars CPC-2: Minimum salary rate. 1,080 Averagesalary1.......... 1,166 1,200 (*) 1,690 1,756 1,690 1,783 2,020 2,129 2,02Q 2,139 2,120 2,307 Minimum salary rate. 1,620 Average salary1.......... 1,683 1,620 (’) 2,168 2,238 2,168 2,287 2,498 2,638 2,498 2,659 2,650 2,866 Minimum salary rate. 3,200 Average salary1......... 3,298 3,200 (’) 4,150 4,279 4,150 4,334 4,480 4,723 4,480 4,754 4,600 4,923 Minimum salary rate. 5,600 Average salary1.......... 5,793 5,600 (*) 7,102 7,300 7,102 7,345 7,432 7,727 7,432 7,752 7,600 7.931 1Average salaries were obtained by weighting each salary step within the grade by the number of employees at that step. In other words, they reflect the effect of increases in basic salary scales and of merit increases in pay within the grade for each period. * Average salary data for individual grades not available. Average Salaries and Gross Earnings Changes in the proportion of workers at various grades within the classification system resulted in Digitizedaforgreater FRASERrise in the index of average salaries than was shown in the indexes of salary rates or basic salary scales just described. As previously indi cated, the combined influence of rate increases and changes in occupational or grade composition advanced average salaries by 83 percent between 1939 and 1950. For each period for which data are available, the rise in average salaries for the entire group of workers covered by this report, was greater than the change in salary rates alone. During World War II, “ gross” earnings of Fed eral workers (that is, earnings including overtime pay) also showed substantially different trends from salary rates. During the period when salary scales were stable, overtime pay became a major source of additional earnings. The workweek for employees covered by the Classification Act was increased to 48 hours from December 1942 to June 1945, with extra pay being provided for most employees.^ A 44-hour week was widely sub stituted in July 194567 and the 40-hour week was generally introduced in September 1945.8 It is estimated that in June 1945, when the 48-hour week was still in effect, overtime pay augmented earnings of employees under the Classification Act by roughly 20 percent. From September 1945 through mid-1950, over time was paid only to a limited number of workers in emergencies; thus, the recent trend in straighttime and gross earnings can be assumed to be practically the same. Since hostilities started in Korea, however, the amount of regularly scheduled overtime work in some of the defense agencies has increased. Changes in “Real” Salaries Average salaries of classified employees rose slightly more than the Bureau of Labor Statistics’ Consumers’ Price Index over the period August 1939 to July 1950, but salary scales and rates (pay for the same type of work) lagged behind living costs. Salary scales and rates of classified em ployees deflated by the CPI, were only about nine-tenths as high in July 1950 (the date of the latest annual salary survey for Federal workers) as they had been in 1939. Since that time, the gap between the CPI and salary scales and rates has been widened further by rising prices. 6 The workweek had been increased from 39 to 44 hours early in 1942 without any increase in earnings. Those receiving basic salaries of over $5,000 were not paid overtime; others received time and a half on that part of their salaries up to $2,900. ?A t that time there was an increase in overtime rates. 8 The increases in salary scales made in 1945 and 1946 were intended at least in part to compensate for the reduction in earnings by elimination of overtime compensation. 4 T A B L E 3 . — C h a n g e s in m in im u m an d a v e r a g e s a l a r i e s 1 u n d e r the C la s s if ic a t io n A c t s , by g r a d e , 1939 an d 1945—60 S e rv ic e and grad e A ugust 1939 June 1945 — r a y " !;" " " 1946 Ju ly i ; 1947 Ju ly r s r " 1948 J u ly - T " * 1" " " J u l y 1,---1950 1949 Indexes (A ugust 1939=100) G en eral Schedule: ---- U S^T:----------M inimum sa la r y ra te z ___________ A v e rag e sa la r y 1 _________________ G S-2: M inimum sa la r y ra te „ __ __ __ A verag e sa la r y 1 _ _______ ______ G S-3: M inimum s a la r y ra te __ __ __ __ A verag e s a l a r y 1 _ __ __ __ ------G S-4: M inimum sa la r y ra te __ _ A v e rag e s a l a r y 1 _ __ __ ___ ___ G S-5: Minimum sa la r y ra te __ ____ __ A verag e s a la r y 1 _________________ G S-6: Minimum sa la r y ra te __ __ __ __ A v e rag e s a l a r y 1 _ ____ ____ __ G S-7: M inimum sa la r y ra te ____________ A v e rag e s a l a r y 1 _ _____________ G S-8: M inimum sa la r y ra te ____________ A verag e s a la r y 1 _ ____ _________ G S-9: M inimum sa la r y ra te ____________ A verag e s a l a r y 1 _ ____ _________ G S - 10: M inimum s a la r y ra te ____ __ __ A v e rag e s a la r y 1 _________________ G S-11: M inimum s a la r y ra te __ ____ __ ____ __ A v e rag e sa la r y GS- 12: M inimum s a la r y ra te ____________ A v e rag e s a la r y 1 _________________ G S-13: M inimum s a la r y ra te __________ A v e rag e s a l a r y 1 _ __ __ __ __ __ GS- 14: Minimum s a la r y ra te ____________ A v e rag e sa la r y 1 _ __ _ ____ __ GS- 15: M inimum sa la r y ra te __ __ __ __ A v erag e s a l a r y 1 _ __ ____ ______ C r a fts, P ro te c tiv e , and C u stod ial: C P C -1 : Minimum sa la r y ra te __ _________ A verag e s a la r y __ ____ __ __ ___ C P C - 2: M inimum s a la r y ra te __ __ ____ A verag e sa la r y __________________ C P C - 3: M inimum sa la r y ra te ____________ A verag e sa la r y __________________ C P C -4 : Minimum sa la r y ra te __ _________ A v e rag e s a la r y __ __ __ __ ______ C P C - 5: M inimum sa la r y ra te ____ ______ A verag e sa la r y C P C -6 : M inimum s a la r y ra te ____________ A v e rag e sa la r y _ _ _ _ _ C P C - 7: M inimum sa la r y ra te ____________ A v e rag e s a la r y __________________ C P C - 8: M inimum sa la r y ra te __ ____ __ A v e rag e sa la r y __ __ ____ __ __ C P C -9: M inimum s a la r y ra te __ A v e rag e s a la r y __ _ _ C P C - 10: M inimum sa la r y ra te A v e rag e s a la r y __ ____ ____ __ See footnotes at end of table 100 100 107 (3) 149 151 149 152 177 179 177 180 190 193 100 100 100 (3) 136 135 136 138 159 162 159 163 170 177 100 100 100 (3) 134 133 134 136 154 157 154 158 164 170 100 100 100 (3 ) 133 133 133 135 151 154 151 155 160 166 100 100 100 (3 ) 132 132 132 136 149 154 149 154 155 162 100 100 100 (3 ) 131 131 131 135 146 150 146 150 150 157 100 100 100 (3 ) 131 130 131 134 143 148 143 149 147 154 100 100 100 (3 ) 130 129 130 133 142 146 141 147 145 151 100 100 100 (3 ) 130 130 130 131 140 143 140 144 144 149 100 100 100 129 129 129 131 139 141 139 142 143 146 100 100 100 129 128 129 130 138 140 138 140 142 144 100 100 100 128 127 128 128 136 136 136 137 139 141 100 100 100 127 126 127 127 133 133 133 134 136 137 100 100 100 (3) 126 123 126 124 131 130 131 130 135 134 100 100 100 (3) 125 118 125 118 129 122 129 122 131 125 100 100 120 (3 ) 180 168 180 168 235 218 235 223 252 239 100 100 111 (3) 156 151 156 153 187 183 187 183 196 198 100 100 110 (3 ) 152 148 152 150 179 177 179 179 188 192 100 100 114 (3) 153 154 153 157 178 181 178 182 186 194 100 100 112 (3) 150 149 150 153 172 176 172 177 178 186 100 100 111 (3) 147 149 147 151 167 172 167 174 173 184 100 100 110 (3 ) 145 147 145 149 163 168 163 170 168 180 100 100 110 (3 ) 145 147 145 150 161 167 161 169 170 180 100 100 100 (3 ) 142 144 142 146 157 160 157 162 164 170 100 100 100 (3) 140 142 140 143 153 156 153 158 160 167 (3) (3) (3) (3) 5 TABLE 3. — Changes in m inim um and average s a l a r i e s S e r v i c e and gra d e A u gu s t 1939 1 under June 1945 the C lassification A c ts , by grade, — 1939 and 1945—50— Continued ------ C T y 15, 194 8 July r;— ------ July r, 1947 1946 July 1, 1949 July 1, 1950 D ollars G e n e r a l Sch edu le: G S-1: M i n i m u m s a l a r y rate ----------------------A v e r a g e s a l a r y 1 -------------- ----------------G S-2: M i n i m u m s a l a r y ra te ----------------------A v e r a g e s a l a r y 1 ----------------------------------G S-3: M i n i m u m s a l a r y rate ----------------------A v e r a g e s a l a r y 1 „ __ __ ___________ G S-4: M i n i m u m s a l a r y ra te __ __ -------A v e r a g e s a l a r y 1 _______________________ G S-5: M i n i m u m s a l a r y rate __ ___________ A v e r a g e s a l a r y 1 __ __ -------------- ----G S-6: M i n i m u m s a l a r y ra te _______________ A v e r a g e s a l a r y 1 __ _____ __ _______ G S-7: M i n i m u m s a l a r y rat e __ __ _______ A v e r a g e s a l a r y 1 __ __ __ _____ ___ G S-8: M i n i m u m s a l a r y ra te __ __ __ ___ A v e r a g e s a l a r y 1 _______________________ G S-9: M i n i m u m s a l a r y rate __ _____ __ A v e r a g e s a l a r y 1 __ _____ ___ G S - 10: M i n i m u m s a l a r y rate _______________ A v e r a g e s a l a r y 1 __ __ __ __ „ __ * G S - 11: M i n i m u m s a l a r y ra te __ _____ ___ A v e r a g e s a l a r y 1 _______________________ G S - 12: M i n i m u m s a l a r y rat e _______________ A v e r a g e s a l a r y 1 „ __ __ __ _____ G S - 13: M i n i m u m s a l a r y rate _______________ A v e r a g e s a l a r y 1 _______________________ G S - 14: M i n i m u m s a l a r y rate _______________ A v erage salary 1 G S-15: M i n i m u m s a l a r y rate __ ___________ A v e r a g e s a l a r y 1 __ __ __ _____ ___ C r a f t s , P r o t e c t i v e , and C u s t od i al : — C P C - T i ----------------------------------------------M i n i m u m s a l a r y ra te _______________ A v e r a g e s a l a r y 1 _______________________ C P C - 2: M i n i m u m s a l a r y rate _______________ A v e r a g e s a l a r y 1 _______________________ C P C - 3: M i n i m u m s a l a r y rate _______________ A v e r a g e s a l a r y 1 __ __ __ _____ ___ C P C -4: M i n i m u m s a l a r y rate Average salary 1 _ _ C P C - 5: M i n i m u m s a l a r y rate A v e r a g e s a l a r y 1 _______________________ C P C -6 : M i n i m u m s a l a r y ra te A v e r a g e s a l a r y 1 _______________________ C P C - 7: M i n i m u m s a l a r y rat e _______________ Average salary 1 C P C -8: M i n i m u m s a l a r y rate _______________ A v e r a g e s a l a r y 1 _______________________ C P C - 9: M i n i m u m s a l a r y rat e _______________ A v erage salary 1 C P C - 10: M i n i m u m s a l a r y rat e _______________ A v e r a g e s a l a r y 1 _______________________ $ 1 ,180 1,223 $ 1 , 756 1, 843 $1,756 1, 858 $ 2 ,086 2, 189 $ 2 ,086 2,2 0 5 $ 2 ,240 2, 356 1,9 5 4 2, 016 1,954 2, 053 2, 28 4 2,4 0 7 2, 284 2,420 2 ,450 2, 63 9 2, 168 2, 2 3 8 2, 168 2 , 2 87 2 ,498 2, 6 36 2 ,4 9 8 2, 659 2, 65 0 2 , 866 2, 394 2,475 2, 394 2, 526 2, 724 2 , 880 2 , 724 2 , 897 2, 875 3, 103 2 , 645 2 , 772 2,6 4 5 2 , 853 2 , 975 3,2 2 7 2, 975 3, 23 8 3, 100 3,405 3, 021 3, 158 3,0 2 1 3, 255 3, 351 3, 626 3, 351 3, 625 3,450 3, 780 3, 397 3,5 2 7 3, 397 3 ,618 3, 727 4 ,011 3, 727 4 , 022 3, 825 4 , 154 3, 773 3,903 3, 773 4 , 021 4 , 103 4,417 4 , 103 4 ,431 4 , 200 4,5 5 3 4 , 150 4 ,279 4 , 150 4 , 334 4,480 4 , 723 4 ,480 4 , 754 4 , 600 4 , 923 4 , 526 4 ,672 4 , 52 6 4 , 728 4 , 856 5 ,100 4 , 856 5, 141 5,000 5,279 4 ,902 5, 091 4 ,9 0 2 5, 154 5,2 3 2 5, 546 5,232 5, 566 5,400 5, 734 5,905 6 , 107 5,905 6, 107 6, 6 , 539 6, 235 6, 584 6 ,400 6 , 759 7, 102 7, 300 7, 102 7, 345 7,4 3 2 7, 727 7,432 7, 752 7,600 7,931 8, 180 8,4 1 7 8, 180 8,473 8, 510 8, 875 8, 510 8,9 1 7 8, 800 9 , 150 (3 ) 9 ,975 9,985 9 ,975 9,9 8 7 10,305 10,321 10,305 10,321 10,500 10,577 720 (3 J 1,080 1, 160 1 , 0 80 1,156 1,4 1 0 1,5 0 2 1,4 1 0 1,540 1,510 1,648 $1,260 (3 ) 1,4 4 0 1,489 1,4 4 0 1,6 2 0 1,683 1,620 1,8 0 0 1, 867 1,800 2 , 000 2,0 9 9 2 , 000 2 , 300 2 ,414 2 , 300 2 ,600 2 , 704 2 , 600 2,9 0 0 3,0 2 0 2,900 3,2 0 0 3 ,298 3,200 3, 500 3 ,620 3 ,500 3, 800 3,974 3, 800 4 ,600 4 , 797 4 , 600 5, 600 5 , 793 5,600 6, 500 6 , 850 6 , 500 8,000 8,465 8,000 600 690 (3 ) (3 ) (3 ) (3 ) (3 ) (3 ) (3 ) (3 ) (3 ) (3 ) (3 ) (3 ) (3 ) 235 1,0 8 0 1, 166 1,200 (3 ) 1,690 1, 756 1,690 1, 783 2 , 020 2, 129 2 , 020 2, 139 2, 120 2, 30 7 1,2 0 0 1,2 9 0 1,320 (3 ) 1,822 1,904 1,822 1,9 2 9 2 , 152 2 , 282 2, 152 2 , 303 2, 25 2 2 ,477 1,3 2 0 1,400 1,500 (3 ) 2 ,020 2 , 159 2, 02 0 2, 159 2, 350 2 , 540 2 , 350 2 , 549 2 ,450 2, 710 1,500 1,5 8 0 1,680 (3 ) 2, 2 44 2, 354 2 ,244 2 ,415 2 , 574 2 , 77 8 2 , 574 2 , 793 2, 67 4 2 ,943 1,6 8 0 1,721 1,860 (3 ) 2,469 2 ,560 2,4 6 9 2 ,607 2 , 799 2,964 2,7 9 9 2 ,9 9 7 2, 900 3, 163 1,860 1,918 2 ,040 (3 ) 2,6 9 5 2, 812 2 ,695 2, 867 3,025 3,2 1 9 3,0 2 5 3,2 6 9 3, 125 3,460 2 , 000 2 , 118 2 , 200 (3 ) 2, 896 3, 114 2,896 3, 184 3, 226 3 , 52 7 3,2 2 6 3, 575 3,400 3 , ‘812 2 ,300 2 ,442 2 ,300 (3 ) 3, 272 3,507 3,272 3, 56 7 3,602 3, 911 3,602 3 ,960 3, 775 4 , 161 2 , 600 2 , 709 2 , 600 3, 6 48 3, 850 3,648 3, 886 3,978 4 , 222 3,9 7 8 4,291 4 , 150 4 , 523 (3 ) . A v e r a g e s a l a r i e s w e r e obt ained by we ighting e a c h s a l a r y step within the gr ad e by the n u m b e r of e m p l o y e e s at that st ep . In ot he r w o r d s , they r e f l e c t the ef f e c t of i n c r e a s e s in b a s i c s a l a r y s c a l e s and of m e r i t i n c r e a s e s in pay within the grad e f o r e a c h p e r io d . 2 Th e m i n i m u m w a s co m p u t ed by w ei ght ing eq u al ly the ba s e pay f o r ea c h of the thr ee g r a d e s ( S P - 1 and 2, C A F - l ) w e r e c o m b i n e d under the G e n e r a l Sched ule . Digitized which for FRASER 3 A v e r a g e s a l a r y data f o r individual g r a d e s not a v a il a b l e . F e d e ra l C la s s ifie d E m p lo y e e s ’ S a la ry C h a n g e s, 1 9 5 0 — 51 G e n e r a l s a l a r y i n c r e a s e s legislated by the Eighty-second Congress raised the basic salary scales for Federal classified workers by 10 per cent between July 1950 and July 1951. Because of an expansion in Federal employment during the period, two other measures of salary change for these employees—average salary rates and average salaries—showed smaller increases, 8.8 and 7.8 percent, respectively. (The indexes re flecting these percentage changes are shown in table 1.) The effect of the rise in basic pay scales on average salary rates was offset in part by a re duction in the proportion of workers receiving more than the minimum scale for their jobs. Av erage salaries were affected by these two factors and by an increase in the proportion of workers at some of the lower grades or occupations within the classified service. The pay raise voted by Congress on October 24, 1951, was retroactive to the first pay period in the 1952 fiscal year—in the majority of cases, to July 8, 1951. Under the act the salary for each pay step within a grade was raised by 10 percent of the minimum for the grade. A flat $300 in crease was given in grades for which the minimum was below $3,000; where the minimum was above $8,000, the increase was $800. If this pay scale increase had not been effective during the year ending in July 1951, both average salary rates and average salaries would have de creased because of the expansion in the number of classified employees. Between July 1950, the termination date of the previous report on salary trends for Federal workers, and July 1951, the number of full-time workers subject to the Class ification Acts increased by about 200,000 to a total of more than a million. Nearly 185,000 of the new employees were hired for positions cov ered by the “general schedule,” which includes clerical, administrative, and professional work. More than three-fifths of these (about 114,000) were placed in three of the lowest pay grades (GS2, 3, and 4). The consequence was an expansion in the proportion of workers employed at these job levels from 43.7 percent to 46.2 percent of all classified workers. The greater number of work ers in these pay grades near the bottom of the Federal scale, therefore, tended to reduce average salaries for all classified workers considered as a group. Moreover, new employees in the Federal service and those who are promoted to more re sponsible positions are, as a rule, started at the minimum pay rate of the grade in which they are placed. Consequently, during periods of expan sion, the percentage of employees at the lower steps within a pay grade grows and the average salary for thef grade is likely to decrease. A 20-percent expansion (20,000 employees) oc curred in the “crafts, protective, and custodial schedule” during the year ending in July 1951. Not only was the proportionate employment ex pansion somewhat smaller for these employees than for clerical, administrative, and professional workers, but the change in the distribution of these T a b l e 1.— In d e x es o f ba sic p a y sca les , average sa la ry ra tes, a n d average sala ries o f em p lo y e e s covered b y F ed era l C la s sifica tion A c t s , 1 9 8 9 - 6 1 Basic pay scales* Period All em ploy ees as Average salary rates1 All em CPC ploy ees as Average salaries * All em CPC ploy ees as CPC August 1939-100 August 1939___ June 30,1945__ July 1,1946___ July 1,1947___ July 15,1948.__ July 1, 1949___ July 1,1950____ July 8,1951____ 100.0 101.1 133.8 133.8 148.5 148. 5 154.6 170.1 100.0 100.2 131.9 131.9 145.7 145.7 151.5 166.5 100.0 100 100 100 100 100 100 110.1 *101 *100 •110 <<) <*) 0) 146.9 133 131 149 143 136 154 144 154 146.9 135 133 152 150 151 149 176 168 160 178 168.3 180 168.3, 152 160 177 170 163 175 192 176.0 160 158 189 183 174 172 209 198 188 214 195.0 Average 1947-49-100 August 1939___ June 30, 1945__ July 1, 1946....... July 1, 1947____ July 15,1948---July 1, 1949....... July 1,1950___ July 8,1951____ t 69.6 70.4 93.2 93.2 103.4 103.4 107.7 11&5 70.9 71.0 93.5 93.5 103.3 103.3 107.4 118.0 62.0 68.3 91.1 91.1 104.4 104.4 109.2 121.0 68 *69 91 92 103 104 110 119 69 *69 91 92 103 104 110 119 64 60 58 61 *65 (<) («) (<) 87 89 88 90 92 92 90 90 104 105 103 103 105 104 104 105 112 112 112 113 124 121 121 125 1 Merit increases in pay within the same grade, which affect the average sal ary rate indexes, compiled by the Bureau of Labor Statistics, have been excluded from the basic pay scale indexes compiled by the Civil Service Commission. Both these index series exclude the effects of changes in the distribution of employees among grades. * In addition to showing the effect of increases in basic salary scales and of merit increases in pay within the same grade, these indexes are influenced by shifts in the proportion of employees among grades. * Estimated by assuming the same distribution of employees among grades and steps within grades in 1939 as in 1945, i. e., by assuming that the change in basic pay scales and in average salary rates was the same during this period. It is known that except for grades 1 through 8 in the CPC schedule and the first grade of the present general schedule there was little or no increase In average rates between 1939 and 1945. * Not available. 6 7 T able 2.— P ercentage increase in basic p a y scales a nd in average sala ry rates f o r F ed eral classified e m p lo y e e s , b y schedule a nd grade , 1 9 5 0 - 5 1 Percentage increase Schedule and grade Basic pay Average salary scales 1 rates * Basic pay Average salary scales 1 rates 1 Crafts , pro tective, custodial General schedule All grades....... 1________ 2.......... 3.............. 4............. 5________ 6________ 7..... ......... 8............... 9........ ...... 10............ 11............. 12............. 13............. 14............. 15............. 16............. 17............. 18............. Percentage Increase Schedule and grade 9.9 13.1 11.7 10.6 9.7 9.2 9.2 9.2 9.3 9.4 9. 5 9.5 9.5 9.6 8.8 7.7 7.1 6.5 5.7 8.7 10.2 8.4 8.8 9.5 8.1 8.8 8.2 8.5 8.6 8.8 8.7 8.9 9.1 8.0 6.3 7.2 6.2 5.7 All grades___ 1________ 2........ ...... 3.. ____ 4............... 5________ 6________ 7_______ 8________ 9________ 10_______ 10.8 19.1 12.9 12.1 11.1 10.5 9.6 8.9 8.9 9.0 9.1 10.3 13.5 13.5 12.3 11.0 7.2 8.4 9.1 8.7 9.6 10.1 1 Basic pay scales are unaffected by merit increases or employment changes. 1 For individual grades, the average salary rates and average salaries are the same. The two concepts differ only when applied to averages for all classified employees or for all grades within one schedule (GS or CPC) since they differ only in the weight assigned to the various grades in computing these group averages. Both measures are affected by changes in pay scales and merit increases in pay. 1951 than in July 1950. Their basic salary scales and average salary rates increased 10.8 and 10.3 percent, respectively. The minimum and maximum dollar limits to the increase in pay scales provided in the 1951 legislation resulted in proportionately greater and smaller pay increases for workers at the bot tom and the top of the salary scale, respectively, than for the bulk of the classified workers. More over, since the increase in pay for most grades was 10 percent of the minimum pay for the grade, the percentage increase in basic pay scales for most grades was somewhat less—between 9 and 10 per cent; the precise increase varied from grade to grade, primarily because of differing proportions of workers at various pay steps within the grade. T able 3.— C hanges in m in im u m a nd average sa la ry rates 1 f o r selected grades u n d er F ed era l C lassification A cts , 1 9 S 9 -5 1 Service, grade, and type of salary rate Au gust 1939 June July July July July July July 1945 1,1946 1, 1947 15,1948 1,1949 1,1950 8, 1951 Indexes (August 1939= 100) workers among steps within pay grades also dif fered: the proportion of employees at higher pay steps rose in half of the 10 “CPC” grades; in the other half the proportion at lower steps increased during the year. The greatest employment gain was recorded in the CPC-5 grade which increased by almost three-fifths. The salary trend for all classified workers closely parallels that for the general schedule, which in cludes almost nine-tenths of all Federal classified workers. Basic salary scales for this general sched ule rose 9.9 percent; average salary rates, 8.7 per cent; and average salaries, 7.3 percent over the year. In each except two of the highest pay grades (GS-16 and GS-18), an increase in the number of new workers with a relatively short period of service (resulting in a decline in the aver age length of service in the grade) caused average salary rates to rise less than basic pay scales. Be cause average length of service increased in grade GS-16, the rise in salary rates was slightly higher than the increase in basic pay scales. Since grade GS-18 has only one rate, there can be no difference in the two measures. In the case of grade GS-2 average salary rates rose 3.3 percentage points, or about a fourth, less than basic pay scales (table 2). Average salaries for crafts, protective, and cus todial workers were 11.1 percent higher in July CPC-2: Minimum. Average.— GS-3: MinimumAverage.— GS-9: Minimum. Average.— GS-13: Minimum. Average.— 100 100 111 (*) 156 151 156 153 187 183 187 183 196 198 224 225 100 100 100 (>) 134 133 134 136 154 157 154 158 164 170 182 185 100 100 100 (*) 130 130 130 131 140 143 140 144 144 149 158 162 100 100 100 (*) 127 126 127 127 133 133 133 134 136 137 149 149 Indexes (average 1947-49=100) CPC-2: Minimum Average.— GS-3: Minimum. Average. — GS-9: Minimum. Average.— GS-13: MinimumAverage— 56 58 <*) 88 87 88 88 106 106 106 106 111 114 127 130 68 67 68 <*) 91 89 91 91 105 105 105 105 112 113 124 123 73 72 73 <*> 95 94 95 94 102 103 102 104 105 107 115 117 76 76 76 (*) 97 96 97 97 102 102 102 102 104 105 114 114 63 Dollars CPC-2: Minimum. Average.— GS-3: Minimum. Average. — GS-9: Minimum. Average.— GS-13: Minimum. Average... 1,080 1,166 1,200 (*) 1,690 1,756 1,690 1,783 2,020 2,129 2,020 2,139 2,120 2,307 2,420 2,618 1,620 1,683 1,620 <*) 2,168 2, 238 2,168 2,287 2,498 2,638 2,498 2,659 2.650 2,866 2,950 3,119 3,200 3,298 3,200 <*> 4,150 4,279 4,150 4,334 4,480 4,723 4,480 4,754 4,600 4,923 5,060 5,346 5,600 5,793 5,600 (’ ) 7,102 7,300 7,102 7,345 7,432 7,727 7,432 7,752 7,600 7,931 8,360 8,652 1 Average salary rates were obtained by weighting each salary step within the grade by the number of employees at that step. In other words, they reflect the effect of increases in basic salary scales and of merit increases in pay within the grade for each period. As indicated in footnote 2, table 2, average salaries and average salary rates are identical. * Average salary rate data for individual^grades not available. 8 The greater rise in basic salary scales than in other measures of salaries during 1950-51 con trasted sharply with the trend reported during previous years.1 Over the entire period from 1939 to July 1951, basic salary scales rose 70 percent while average salary rates (table 3) advanced 74 percent and over-all salaries increased 98 percent (table 1). Average salaries of classified employees and the Consumers’ Price Index for moderate-income families in large cities increased by the same ratio between July 1950 and July 1951. Basic pay scales and average salary rates showed a slight gain over prices during the same period. For the entire span from 1939 to July 1951, however, average salaries rose slightly more than living costs but average salary rates and basic pay scales did not keep pace as shown in the following indexes. From July to December 1951, prices showed a further rise of nearly 2 percent or about 3.5 index points. It is possible that there was a similar development during the early World War II period when Federal employment expanded sharply; at that time average salary rates may have actually declined, but detailed salary infor mation is not available for those years. B a s ic p a y scales 1 Indexes (A u gu st 19S9—100) A U Federal General CPC classified schedule schedule em ployees Actual___________________ Deflated by CPI,2 July 1951- 170. 1 91. 2 166. 5 89.2 195.0 104.5 A v er a g e s a la r y rates 3 Actual___________________ Deflated by CPI,2 July 1951. 174 93 172 92 209 112 A v era g e sa la ries 4 Actual___________________ Deflated by CPI,2 July 1951. 198 106 188 101 214 115 1Indexes show the effect of changes in pay scales only. The effects of merit increases in pay within the same grade and of changes in the distribution of employees among grades were eliminated by applying identical weights to each pay step within a grade in successive periods. * The Consumers' Price Index was 186.6 in July 1951. Average 1939 was used as the base. * Indexes are affected by changes in salary scales and merit increases. The effect of changes in the proportion of employees at various grades was nulli fied by applying the same employment weights to average salaries in a grade in successive years. 4 In addition to showing the effect of increases in pay scales and of merit increases in pay within the same grade, indexes are influenced by shifts in the proportions of employees among grades. No changes in method were introduced in this supplement to the basic study of salary trends for Federal classified employees. Two series of indexes are presented, however, for each of the salary measures. One is computed on a 1939 base for comparison with the indexes previously published, and the other uses an average 1947-49 base in accordance with the current Governmental policy of changing indexes to this new base wherever possible. F e d e ra l C la s s ifie d E m p lo y e e s ’ S a la ry C h a n g e s, 1951— 52 schedule, merit increases in pay raised average salary rates; the change amounted to $3 in grades 4 and 9 and to as much as $28 in grade IQ.1 In B a s i c s a l a r y s c a l e s of Federal employees covered by the Classification Acts were not changed during the year July 1951 to July 1952. But merit or in grade salary increases over the same period did raise average pay slightly. This rise in average pay, however, was only two-tenths of 1 percent, because of the turnover in a number of pay classi fications; the lower amounts paid for merit in creases in some grades largely offset the higher amounts paid in others. Shifts in the proportion of employees performing various types of work, together with the merit increases, raised salaries of Federal classified workers by an average of 2.1 percent. This average rise of 2.1 percent resulted, in part, from the addition of 31,000 professional and clerical employees (paid under the general sched ule) and a reduction of approximately 3,000 em ployees in the crafts, protective, and custodial group (the CPC schedule). Workers in the second group are at the lower end of the Federal pay scale. Moreover, within each of the groups the number of higher-paid workers expanded proportionately more than that of lower-paid workers, with a resultant rise in average salaries. Among the general schedule workers, employment declined in grades 1 and 2, but increased in grades 3 to 15; and among the CPC workers, employ ment dropped in grades 2 to 5, but expanded in the higher grades. This situation contrasts with the previous year when most of the 200,000 workers added to the Federal classified service were hired at the lower grades. The rise in the proportion of workers in every general schedule grade from 3 to 15 caused a 2percent advance in average salaries of all clerical and professional workers grouped together. About 56,000 were added to these grades, compared with a reduction of 25,000 in grades 1 and 2. Although there was essentially no change in merit or length-of-service pay increases when all general schedule grades were averaged together (as measured by average salary rates in table 1), length-of-service adjustments had significant ef fects on salaries in individual grades. (See table 2.) In the first 10 pay grades within the general T a b l e 1.— In d e x e s o f basic p a y scales, average sa la ry rates a nd average salaries o f em p lo yees C la ssifica tion A c t s , 1 9 8 9 - 5 2 covered by F ed era l [Average 1947-49-100] All employees General sched ule Crafts, protec tive, custodial All employees General sched ule 69.6 70.4 93.2 93.2 103.4 103.4 107.7 118.5 118.5 70.9 71.0 93.5 93.5 103.3 103.3 107.4 118.0 118.0 62.0 68.3 91.1 91.1 104.4 104.4 109.2 121.0 121.0 68 >69 91 92 103 104 110 119 119 69 >69 91 92 103 104 110 119 119 60 >65 89 90 105 105 113 124 125 61 (4) 88 92 103 104 112 121 124 64 (4) 87 92 103 104 112 121 123 Crafts, protec tive, custodial Crafts, protec| tive, custodial August 1939___ June 30, 1945__ July 1, 1946___ July 1, 1947___ July 15, 1948-... July 1, 1949___ July 1, 1950___ July 8,1951___ July 1, 1952....... Average salaries > General sched ule Period Average salary rates * All employees Basic pay scales i 58 (4) 90 90 104 105 112 125 127 1 Merit increases in pay within the same grade, which affect the average salary rate indexes, compiled by the Bureau of Labor Statistics, have been excluded from the basic pay scale indexes compiled by the Civil Service Commission. Both the basic pay scale and average salary rate indexes exclude the effects of changes in the distribution of workers among grades. * In addition to showing the effect of increases in basic salary scales and of merit increases in pay within the same grade, these indexes are influenced by shifts in the proportions of workers among grades. 1 Estimated by assuming the same distribution of employees among grades and steps within grades in 1945 as in 1939. Since it is known that, during this period, there was little or no increase in average rates because of merit increases, it was reasonable to assume that the change in basic pay scales and average salary rates was virtually the same. 4Not available. contrast, average salaries decreased in grades GS-11 to GS-15, which include about 1 out of 10 workers in this schedule. These decreases in aver age salaries in the upper grades were progressively greater with each higher grade.2* 1 Actually the greatest increase in length of service occurred in grade 2, although the $25 average increase in this grade was not the largest recorded. Merit or length-of-service increases for the first four grades are $80 compared with $125 for GS-5 to GS-10, and $200 for most of the upper grades. The qualifying period for a merit or lengtb-of-servloe increase is 12 months for all CPC grades and for grades GS-1 to GS-10; for higher grades it is 18 months. 2 Because grades 16,17, and 18 are subject to limitations not applicable to the other grades within the schedule, they are excluded from the general discussion. 9 10 1 o f em p lo ye es u n d er the Federal C la ssification A c t s , b y grade , 1 9 5 1 - 5 2 T a b l e 2.— C hanges i n average sa la ry rales Schedule and grade General Schedule: Grade 1 ................................ Grade 2.................................. Grade 3................................. Grade 4................................. Grade 5................................. Grade 6................................. Grade 7................................. Grade 8................................. Grade 9................................. Grade 10................................ Grade 11................................ Grade 12..... .......................... Grade 13................................ Grade 14... ........................... Grade 15................................ Crafts, protective, and custodial: Grade 1................................. Grade 2................ ................ Grade 3........................... ...... Grade 4................................ Grade 5............. .................... Grade 6................................. Grade 7................................... Grade 8................................. Grade 9.................................. Grade 10................................ Average annual salary rate Changes in average salary rate, 1951 to 1952 1951 1952 $2,596 2,861 3,119 3.398 3,681 4,111 4,495 4,942 5.316 5,741 6.230 7,360 a 652 9,880 11,245 $2,600 2,886 3.126 3,401 3,703 4,123 4,503 4.919 5,349 5,769 6,220 7.344 a 634 9,855 11,180 +0.2 +.9 +.2 +• 1 + .6 +.3 + .2 +.1 +.1 + .5 -.2 -.2 -.2 -.3 -.6 +4 +25 +7 +3 +22 +12 +8 +7 +3 +28 -10 -16 -18 -25 -65 1,870 2.618 2,782 3,008 3 154 a 428 3.776 4,145 4.559 4.978 1,955 2,637 2.805 3.037 3,193 3,435 3.794 4.175 4,582 5,017 +4.5 + .7 + .8 +1.0 +1.2 +.2 + .5 +85 +19 +23 +29 +39 Percent + .7 + .5 +.8 Dollars +7 +18 +30 +23 +39 » Average salary rates were obtained by weighting each salary stop within the grade by the number of employees at that step. In other words, the change in average salary rates reflects the effect of any legislative Increases in basic salary scales and of in-grade merit increases in pay. Average salaries of crafts, protective, and cus todial workers rose 1.5 percent. About half of this increase was due to the relatively greater number of workers in the higher classifications (grade 6 and above) in 1952 than in 1951—6,000 fewer workers in grades 2 to 5 and about 3,000 more in the upper grades. The rest of the increase was due to merit or length-of-service increases. For the entire crafts, protective, and custodial service, merit pay raises advanced average sal aries by 0.7 percent. Salaries in each grade were higher in July 1952 than in July 1951, since workers had longer service in each of these grades than they had in the earlier year. Employees in CPC-5 and CPC-10 showed the largest pay advance ($39) of any group in which substantial numbers were employed (CPC-2 to 10). As a result of the addition of 1,800 new employees to CPC-6, the $7 annual increase was below that for any other CPC grade. Changes Since 1939 Between 1939 and July 1952, legislative in creases in the basic pay scales of Federal classified workers amounted to 70.1 percent. Length-ofservice or merit pay raises resulted in a further increase of about 4 percent in average salary rates over the same period. Changes in occupational structure also had a considerable effect on average salaries. The proportion of clerical, administra tive, and professional employees (whose salaries are higher on the average than those of crafts, custodial, and protective workers) rose during the 13-year period from three-fourths to almost ninetenths of all classified workers; moreover, within the GS schedule, the proportion of employees in higher-pay grades also rose. Adding the effects of these changes in occupational structure to those of the legislative (basic-salary) and length-ofservice pay increases, average salaries of Federal workers rose by 102 percent between 1939 and 1952. (See chart.) Over the same period the Consumer Price Index rose 92 percent. Thus, only the average salary index kept pace with rising prices over the 13-year period, having risen 5 percentage points more than the CPI. In “real” terms (the dollar increase reduced by the change in the Consumer Price Index), basic pay scales and average salary rates of Federal classified workers declined 11.4 and 9.4 percent, respectively, between 1939 and mid-1952. 11 Percent Changes in Salaries of Federal Classified Employees and in Consumer Prices,1August 1939 to Specified Dates2 F e d e ra l C la s s ifie d E m p lo y e e s ’ S a la ry C h a n g e s, 1 95 1 — 5 4 On January 11, 1955, the President of the United States sent messages to Congress proposing salary adjustments for major groups of Federal civilian employees. The increases proposed for Classifi cation Act employees would average about 5 per cent, with relatively greater gains for higher salaried workers designed to offset in part the pre vious narrowing of pay differentials. For postal employees, raises would average about 6.5 per cent including an immediate 5-percent increase in basic salary rates and a new salary plan designed to offer “incentives for advancement” and “higher pay for more difficult and responsible work.” These proposals would affect more than 900,000 workers paid under the Classification Act and over 400,000 workers in the postal field service. The proposed legislation also included employees cov ered by the Foreign Service Act and employees of the Veterans Administration Department of Medicine and Surgery. This article summarizes recent trends in salaries for Federal workers paid under the Classification Act,1 including clerical, administrative, and pro fessional employees and some custodial, protective, and maintenance workers. The Classification Act does not cover other groups of Federal em ployees such as those working in navy yards or at certain Army and Air Force installations whose rates of pay are determined by wage boards.1 Salary Trends The Bureau of Labor Statistics publishes three separate measures of earnings of Federal Classifica tion Act workers. (See table 1.) These are designed to isolate the effects of the three principal factors that affect their average pay, namely, statutory changes in basic pay scales, average length of service within a given grade, and the proportion of workers performing various jobs and hence classified in each of the several pay grades. July 1951 to July 1954. Basic pay scales have remained unaltered since July 8, 1951, the effective date of the most recent increase in salary scales enacted by the Congress for classified and postal employees. Average salary rates, which measure the com bined effect of any increases in basic salary scales resulting from legislation and of merit or length of service changes in pay within the same occupa tion or grade, increased 2 percent between July 1951 and July 1954. At least in part this rise resulted from the reduction of 61,500 in the num ber of Federal Classification Act employees which occurred over this period.2 Since the separated workers are customarily those with the least service or tenure, their dismissal in substantial numbers tends to raise the average length of service of workers remaining within a job or grade and hence the proportion who have received periodic withingrade pay increases. Average salaries are affected not only by legis lation and merit increases but by changes in the proportion of workers among the various pay grades. They rose 6.6 percent in the 3-year period. This change resulted from increases in the pro portion of workers in most grades who had received in-grade pay increases and of the decline in the proportion of workers in the lower pay grades (GS-1 to GS-3; see table 2). Merit increases between 1951 and 1954 raised average salaries from 1 to 3 percent in the general schedule grades up through GS-10 except in grades GS-5 and GS-2, for which the increases were 3.6 and 3.3 percent, respectively. In grades 1 See The Government’s Industrial Employees: I. Extent of Employ ment, Status, Organization; and, II. Consultation, Bargaining and Wage Determination, Monthly Labor Review, January 1954 (p. 1) and March 1954 (p. 249). 2 The number increased 28,000 from July 1951 to July 1952 then declined 89,000 during the next 2 years. 12 13 T able 1.— In d e x e s o f basic p a y sca les , average sa la ry ra tes , a n d average sala ries A c t s , 1 9 8 9 —54. 1 o f em p lo ye es covered b y F ed era l C la ssification [A verage 1947-49=100] P eriod A ll em ployees A u g u st 1939................................................................. Ju n e 30, 1945.............................................................. J u l y 1, 1946.................................................................. J u l y 1,1947......... ........................................................ Ju ly 15, 1948................................................................ J u l y 1,1949................................................................. J u l y 1, 1950..............................................................J u l y 8 ,1951.................................................................. J u l y 1, 1952.................................................................. J u l y 'l , 1953................................................................. Ju ly 1, 1 9 5 4 ................................................................ 69.6 70.4 93.2 93.2 103.4 103.4 107.7 118.5 118.5 118.5 118.5 G eneral schedule A v erage salaries A v erage salary rate s B a sic p a y scales C rafts, pro tectiv e, cu sto d ial 62.0 68.3 91.1 91.1 104.4 104.4 109.2 121.0 121.0 121.0 121.0 70.9 71.0 93.5 93.5 103.3 103.3 107.4 118.0 118.0 118.0 118.0 A ll em p loyees 68.2 > 6 9 .0 90.6 92.3 103.5 104.2 109.6 119.3 119.6 120.7 121.8 G eneral schedule 69.3 > 6 9 .4 90.8 92.5 103.5 104.0 109.4 118.8 119.0 120.0 121.1 C rafts, pro tectiv e, cu sto dial 59.5 *6 5 .5 88.8 90.3 104.4 105.3 112.2 123.8 124.7 126.1 127.3 A ll em ployees 61.4 (») 87.7 92.3 103.1 104.6 112.6 121.4 124.0 127.1 129.4 G eneral schedule C rafts, pro tectiv e, cu sto d ial 58.7 64.2 0) 87.5 92.6 103.0 104.5 112.3 120.6 123.0 126.3 128.8 (J) 90.2 90.2 104.3 105.4 112.8 125.3 127.2 129.1 129.3 * B a sic p a y scales reflect o n ly sta tu to ry changes in salaries, w hile average salary rates show in a d d itio n the effect o f m erit or in-grade salary increases. A v er age salaries m easure the effect n o t on ly of sta tu to ry changes in b asic p a y scales an d in-grade sala ry increases b u t th e effect of changes in the proportion of w orkers em p lo y ed in the v ario u s p a y grades. * E stim a te d b y a ssu m in g the sam e d istrib u tio n o f em ployees am on g g rad es an d step s w ith in grad es in 1945 a s in 1939. Since there w as little or no increase in average rate s because of m erit in creases d u rin g th is period, it w as assu m ed th a t the change in b asic p a y scales a n d average sala ry rates w as v irtu a lly the sam e. * N o t av ailab le. August 1989 to July 1954, Statutory changes in pay increased basic salary scales for Federal Classification Act employees by 70 percent from August 1939 to July 1954. These increases in basic scales, combined with merit or in-grade changes in pay, brought average salary rates 78.5 percent above 1939. Because of a decline in the proportion of workers in the lower pay grades (notably, in grades GS-1 and GS-2 and CPC-1, CPC-2, and CPC-3), average salaries for all classified workers rose by 111 percent from 1939 to mid-1954; for professional, clerical, and ad ministrative employees covered by the general schedule, average salaries rose by about 100 GS-11 to GS-14, merit increases amounted to less than 1 percent; in grade GS-15, an 0.4 percent decline in average salaries occurred. In most of the CPC grades the increase in average salary rates between 1951 and 1954 ranged between 2 and 3 percent (table 3). These changes in salaries of Federal classified employees compare with the rise of 3 to 4 percent in the Consumer Price Index of the Bureau of Labor Statistics.3 Among large groups of workers in private employment, weekly and hourly pay of factory production workers rose by about 15 percent from July 1951 to late 1954. Similarly, the increase in average weekly salaries of women office clerical workers in 6 large cities studied by the BLS varied from approximately 13 to 19 per cent from early 1951 to early 1954.4 T able 2.— 3 T h e increase w as 3.9 percent from J u l y 1951 to J u l y 1954 an d 3.1 percent from Ju l y 1951 to Ja n u a r y 1955. 4 See Salaries of W om en in Office W ork, 1949 to 1954, M o n th ly L a b o r R e view , S eptem b er 1954 (p. 972). P e rc e n t d istribu tion o f e m p lo y m e n t o f general schedule e m p lo ye es b y grade, selected p e r io d s, 1 9 8 9 - 5 4 Item T o ta l, general schedule: N u m b e r.......... ........................................................................................................ P erc e n t.................................................................................................................. G S - 1 —............................................................................................................................. G S - 2 ................................................... .............................................................................. G S - 3 ................................................................................................................................. G S -5 a n d G S - 6 .......................................................................................................... .. G S - 7 an d G S -8 ............................................................................................ ............... G S -9 a n d G S —10!_____________________________________________________ G S -1 1 ............................................................................................................................... G S -1 2 to G S -1 5 ........................................................................................................... G S -1 6 to G S -1 8 ........................................................................................................... * L e ss th an 0.1 percent. A u g u st 1939 Ju l y 1,1946 J u l y 1,1950 J u l y 8,1951 J u l y 1,1952 J u l y 1,1953 J u l y 1,1954 234,067 100.0 893,653 100.0 701,824 100.0 13.1 18.1 14.7 11.5 17.2 10.4 6 .8 3.8 4.4 2.5 19.3 22.8 13.6 13.9 11.6 7 .6 4.0 4 .7 1.8 14.5 20.6 14.8 14.8 12.3 9 .2 5.1 6.9 0) 885,925 100.0 1.416.6 21.8 13.9 14.5 11.7 8 .7 4.8 6 .6 0) 917,173 100.0 862,556 100.0 836,536 100.0 0 .9 13.7 22.1 14.7 14.8 12.6 9 .0 5.0 7.1 .1 0 .8 12.1 21.5 15.1 14.6 12.8 9 .8 5.6 7.6 .1 0 .7 11.4 21.0 15.1 14.8 12.4 10.5 6.0 8.1 0) 14 T able 3.— M i n i m u m a nd average salaries S ch edule an d grade A u g u st 1939 J u l y 8, 1951 * J u l y 1, 1954 1 u n d er the C la ssifica tion A c t s , b y grade, 1 9 S 9 , 1 9 5 1 , a nd 1 9 5 4 P ercen t in crease to J u l y 1, 1954, from — Sch edule an d grade Au gu st 1939 J u ly 8, 1951 $2,500 111.9 2,632 115.2 2,750 91.0 2,955 98.5 2,950 82.1 3,197 90.0 3,175 76.4 3,463 85.5 3,410 70.5 3,814 81.7 3,795 65.0 4,228 75.1 4,205 61.7 4,574 69.2 4,620 59.3 5,042 67.0 5,060 58.1 5,400 63.7 5,500 57.1 5,879 62.4 5,940 56.3 6,289 58.3 7,040 53.0 7,415 54.6 8,360 49.3 8,710 50.4 9,600 47.7 9,940 45.1 0 1.4 0 3.3 0 2.5 0 1.9 0 3 .6 0 2.8 0 1.8 0 2.0 0 1.0 0 2.4 0 .9 0 .7 0 .7 0 .6 G eneral schedule— Coi£. G en eral schedule G S -1 : M in im u m sala ry r a te ................... * $ 1 ,180 A verage s a la r y ................................. 1,223 1,440 G S -2 : M in im u m sala ry r a te ................... A verage sa la r y ................................. 1,489 1,620 G S -3 : M in im u m sa la ry r a te ................... A verage s a la r y ................................. 1,683 G S -4 : M in im u m sala ry r a te ............... 1,800 A v erage sa la r y ................................. 1,867 G S -5 : M in im u m sala ry r a te ................... 2,000 A verage sa la r y ................................. 2,099 G S -6 : M in im u m sa la ry r a te ................... 2,300 A v erage s a la r y ................................ 2,414 G S -7 : M in im u m sala ry ra te ................... 2,600 A v erage sa la r y ................................ 2,704 G S -8 : M in im u m sala ry ra te ................... 2,900 A v erage sa la r y ................................. 3,020 G S -9 : M in im u m sala ry r a te ................... 3,200 A verage s a l a r y ............................... 3,298 G S -1 0 : M in im u m sala ry r a te ................. 3,500 A verage sa la r y ............................... 3,620 G S -1 1 : M in im u m sala ry ra te ................. 3,800 A verage sa la r y ............................... 3,974 G S-12: M in im u m sala ry r a te ................. 4,600 A v erage s a la r y ............................... 4,797 G S-13: M in im u m sala ry r a te ................. 5,600 A v erage sa la r y ............................... 5,793 G S-14: M in im u m sala ry r a te ................. 6,500 A v erage sa la r y ............................... 6,850 A u g u st J u l y 8, 1939 1951 » P ercen t in crease to J u ly 1, 1954, from — J u l y 1, 1954 A u Ju ly gu st 8, 1939 1951 $2,500 2,596 2,750 2,861 2,950 3,119 3,175 3,398 3,410 3,681 3,795 4,111 4,205 4,495 4,620 4,942 5,060 5,346 5.500 5,741 5,940 6,230 7,040 7,360 8,360 8,652 9,600 9,880 G S-15: M in im u m sala ry r a te ................. A verage sa la r y .............................- $8,000 $10,800 $10,800 8,465 11,245 11,197 35.0 32.3 0 4- .4 201.7 189.7 124.1 129.8 112.7 122.5 108.3 121.4 98.3 107.7 90.5 104.0 84.7 101.7 87.0 101.0 80.4 90.5 75.6 88.8 0 6.9 0 2 .4 0 3 .2 0 3.1 0 4.1 0 2 .4 0 2 .4 0 2 .7 0 2 .1 0 2 .7 C rafts, pro tectiv e, a n d cu sto dial C P C - 1 : M in im u m sala ry r a te _______ A verage sa la r y ......................... C P C - 2 : M in im u m sala ry r a te _______ A verage sa la r y ______________ C P C - 3 : M in im u m sala ry r a te _______ A verage sa la r y ............................. C P C - 4 : M in im u m sala ry r a te _______ A verage sa la r y ............................. C P C - 5 : M in im u m salary r a te ........... A verage sa la r y ............................. C P C - 6 : M in im u m sala ry r a te _______ A verage sa la r y ............................ C P C - 7 : M in im u m sala ry r a te _______ A verage s a l a r y . . . ....................... C P C - 8 : M in im u m sala ry r a t e ............... A verage sa la r y ............................. C P C - 9 : M in im u m sala ry r a te ............. . A v erage s a l a r y . . ......................... C P C -1 0 : M in im u m sala ry r a te ........... .. A v erage sa la r y ........................... 600 690 1,080 1,166 1,200 1,290 1,320 1,400 1,500 1,580 1,680 1,721 1,860 1,918 2,000 2,118 2,300 2,442 2,600 2,709 1,810 1,870 2,420 2, 618 2,552 2,782 2,750 3,008 2,974 3,154 3,200 3,428 3,435 3,776 3,740 4,145 4,150 4, 559 4,565 4,978 1,810 1,999 2,420 2,680 2, 552 2,870 2,750 3,100 2,974 3, 282 3,200 3, 511 3,435 3,868 3,740 4.257 4,150 4,653 4,565 5,114 1 A v erage salaries w ere ob tain ed b y w eightin g each sala ry step w ith in th e grad e b y the n u m b er o f em ployees a t th a t step . In other w ords, th ey reflect th e effect of increases in b asic sala ry scales a n d of m erit increases in p a y w ith in the grade for each period. * E ffectiv e d ate of m ost recent p a y scale revision . * T h e m in im u m w as co m p u ted b y w eightin g e q u ally th e b ase p a y for each of the 3 g rad es (S P -1 , S P -2 , a n d O A F -1 ) w hich were com bin ed un d er the general schedule. * P ercen t decrease percent. These increases compare with a rise of about 92 percent in the CPI from the year 1939 to late 1954. For factory production workers, weekly pay more than tripled, partly because of increased hours of work;5average hourly earnings, excluding premium pay for overtime, were 2K to 3 times their 1939 level. Among other groups, average salaries of urban teachers rose 96 percent from 1939 to 1953 while salary scales for urban firemen and policemen increased about 80 percent. 6 Salary changes since 1939 have been propor tionately greater for employees at the lower end of the Federal pay scale than for those in the higher grades.7 Within the general schedule, a GS-15’s minimum pay in 1939 amounted to 5% times that of a GS-2, the lowest grade in which a substantial number of workers are employed; the corresponding ratio in 1954 was less than 4. Minimum salary rates for workers in grades CPC-1 to CPC-4 and GS-1 more than doubled and the salary scale for CPC-5 also rose slightly more than the CPI. 8 For each higher grade the percentage gain was progressively less, with the GS-15 salary rising about a third and its purchas ing power declining about a third during this 15-year period. 5 H o u rs of F ed e ral w orkers were 40 in 1954 com pared w ith 39 in 1939. • D a ta for 1954 are n ot av aila b le for teachers nor policem en an d firem en. • T h e follow ing p a y scale increases were gran ted d u rin g the period: A u g ust 1 ,1 9 4 * — S P -1 an d 2 (now p art of G S -1) an d C P C -1 through 8 increased from $60 to $200; J u ly 1, 1945—20 percent on first $1,200; 10 percent on n ext $3,400; 5 percent on rem ain der, su b ject to a $10,000 ceiling; J u ly 1, 1946— 14 percent or $250 a year, w hich ever w as greater, b u t n ot m ore th an 25 per cent; J u ly 1948—$330 increase in all rates; October 1949—A n average of $140 a year resu ltin g from the revision of classification stru ctu re; J u ly 8, 1951— 10 percent, w ith a m in im u m of $300 an d a m ax im u m of $800. 8 A verage sala ry rates, in clu d in g the effect of m erit increases in p a y , in g rad es C P C - 6 , C P C - 7 , C P C - 8 , an d G S -2 also rose m ore th an the C P I . F e d e ra l C la s s ifie d E m p lo y e e s ’ S a la ry C h a n g e s, 1 9 5 4 — 5 6 by the Classification Act and their rates of pay are determined on an area or locality basis by various wage boards or committees established by the Federal agencies employing them. pay scales of Federal white-collar em ployees increased 7.6 percent between mid-1954 and mid-1956 as a result of pay-raise legislation enacted by Congress in 1955. This increase, combined with the effect of in-grade merit or length-of-service adjustments and changes in the employment pattern, raised average salaries by 10.1 percent. The Federal Employees Salary Increase Act of 1955.1* signed by the President on June 28, 1955, raised salary scales of about 900,000 workers under the Classification Act, retroactive to the first complete pay period in March of that year. These workers comprise the vast majority of the Federal Government white-collar employees ex cept those in the field service of the Post Office De partment. Government industrial employees— so-called “blue collar” workers—are not covered B a s ic T a ble The 1955 act also raised the pay of employees in the legislative and judicial branches of the Government, in the Department of Medicine and Surgery of the Veterans Administration and the Foreign Service of the Department of State as well as certain employees of the District of Columbia Government. Also, in 1955, Congress enacted the Postal Field Service Compensation Act granting employees under it a 6-percent in crease in addition to an approximate average 1 T h e act (P u b lic L a w 94, 84th C on g., 1st sess.) provided for an across-theboard increase of 7.5 percent b u t contained a stip u latio n th a t all new rates which were not in m ultiples of $5 be rounded to the next higher $5 per an n u m . B ecau se of the roun din g, the average increase am ou n ted to 7.6 rather th an 7.5 percent. 1 .— In d e x es o f basic p a y scales, average sa la ry rates, and average salaries 1 of F ed era l classified em p lo yees, 1 9 3 9 - 5 6 [A verage 1947-49=100] B a sic p a y scales P eriod A u g u st 1939_______ ____ _____________ Ju n e 30, 1945_________________________ J u ly 1, 1946____ _____________________ J u ly 1, 1947____ _________ _____ _____ J u l y 15, 1948____ ____________________ J u ly 1, 1949________________ __________ J u ly 1, 1950___ _________________ ____ J u ly 8, 1951......... ........................... ............... J u ly 1, 1952____ __________ ___________ J u ly 1, 1953_________ ________________ J u ly 1, 1954__________________ ______ _ J u ly 1, 1955..................................... ............... J u ly 1, 1956......................... ............................ A ll C lassifi cation A ct em ployees 69.6 70.4 93.2 93.2 103.4 103.4 107.7 118.5 118.6 118.5 118.5 (4) w General schedule 70.9 71.0 93.5 93.5 103.3 103.3 107.4 118.0 118.0 118.0 118.0 • 127. 0 127.0 A verage sala ry rates C rafts, p rotective, cu stodial A ll C lassifi cation A ct em ployees 62.0 68.3 91.1 91.1 104.4 104.4 109.2 121.0 121.0 121.0 121.0 (4) 68.2 * 69.0 90.6 92.3 103.5 104.2 109.6 119.3 119.6 120.7 121.8 (4) (4) (*) 1 B a sic p a y scales reflect only statu to ry changes in salaries, while average salary rates show in addition the effect of m erit or in-grade salary increases. A verage salaries m easure the effect not only of statu to ry changes in basic p a y scales an d in-grade salary increases b u t the effect of changes in the pro portion of w orkers em ployed in the variou s p ay grades. * E stim a te d b y assum in g the sam e d istribu tion of em ployees am on g grades an d step s w ithin grades in 1945 a s in 1939. Since there w as little or no increase in average rates because of in-grade increases during this period, it w as G eneral schedule 69.3 * 69. 4 90.8 92.5 103.5 104.0 109.4 118.8 119.0 120.0 121.1 * 130. 6 130.5 A verage salaries C rafts, p rotective, cu sto dial 59.5 *6 5 .5 88.8 90.3 104.4 105.3 112.2 123.8 124.7 126.1 127.3 0) (4) A ll C lassifi cation A ct em ployees 61.4 (*) (*) (4) 87.7 92.3 103.1 104.6 112.6 121.4 124.0 127. 1 129.4 G eneral schedule 64.2 (3) 87.5 92.6 103.0 104.5 112.3 120.6 123.0 126.3 128.8 * 140.2 141.8 C rafts, protective, cu stodial 58.7 (3) 90.2 90.2 104.3 105.4 112.8 125.3 127.2 129.1 129.3 (4) (<) assum ed th a t the change in basic p a y scales w as v irtu a lly the sam e as in average salary rates. * N o t available. 4 Index discon tinued, as the general schedule now covers all Classification A ct em ployees. 4 D a ta have been ad ju sted to include some em ployees form erly under the C P C schedule who are now covered b y the general schedule; abou t twoth ird s of the em ployees were transferred to w age-board classifications and the rem aining one-third to the general schedule. 15 16 T able 2.— Percentage distribu tion o f general schedule em p lo ye es b y grade, selected p erio d s, 1 9 8 9 - 5 6 P ercen t o f w orkers in— Item August J u ly l, J u ly l, July 8, J u ly l, J u ly l, July 1. 1939 1946 1951 1954 1955 1956 1950 GS-1.......................... GS-2.......................... GS-3.......................... GS-4_________ _____ GS-5 and GS-6......... GS-7 and GS-8_____ GS-9 and GS-10____ GS-11........................ GS-12 to GS-15......... GS-16 to GS-18....... . 13.1 18.1 14.7 11.5 17.2 10.4 6.8 3.8 4.4 2.5 19.3 22.8 13.6 13.9 11.6 7.6 4.0 4.7 1.8 14.5 20.6 14.8 14.8 12.3 9.2 5.1 6.9 0) To ta l................ 100.0 100.0 100.0 1.4 16.6 21.8 13.9 14.5 11.7 8.7 4.8 6.6 C) 1.1 11.5 21.0 15.7 14.9 12.1 10.1 5.8 7.8 .1 1.1 10.9 20.9 15.8 14.8 11.8 10.1 6.1 8.4 .1 0.7 8.9 21.4 16.4 15.2 11.9 10.2 6.3 8.9 .1 100.0 100.0 100.0 100.0 Number of employ ees................................. 234,067 893,653 701,824 885,925 863,462 886,512 908,535 * L e ss th an 0.05 percent. N o t e : B ecau se of rou n din g, to tals do n ot n ecessarily eq u al 100. 2-percent rise resulting from job reclassifications. These two laws enacted within 3 weeks of each other constituted the first pay legislation affecting white-collar employees of the Federal Govern ment since July 8, 1951.2 This article presents data on the salaries of Federal employees under the Classification Act in the form of three types of indexes which reflect the changes in basic pay scales, average salary rates, and average salaries between July 1954 and July 1956. In extending the indexes for the period studied, only salary trends of employees under the general schedule were used since the crafts, protective, and custodial schedule was abolished effective July 1, 1955, in accordance with Public Law 763 (83d Cong., 2d sess.). Of the approximately 100,000 employees formerly under the CPC schedule, almost two-thirds (em ployed largely in craft jobs) were transferred to wage-board classifications, with their rates of pay established on the basis of rates prevailing in private industry in the labor market in which they were employed. The remainder (mostly messengers, guards, and firefighters) were placed in general schedule grades 1 through 8. At the * In 1954 an d 1956, there w ere also som e gain s in su p p lem en tary benefits for F ed eral em ployees. L egislation p assed in A u g u st 1954 provided F ed eral w orkers w ith life insu ran ce, in clu d in g acciden tal d eath a n d d ism em berm en t b enefits, w ith the G overn m en t an d the em ployees sh arin g the p rem ium s. T h is legislation also set u p 3 a d d ition al in-grade (longevity) step s for em p loy ees in grades G S-11 through G S-15. In ad d itio n , retirem en t benefits w ere lib eralized b y legislation,, enacted in J u l y 1956 a n d effective in O ctober of th a t year, w hich in creased em ployee con tributions. same time—on July 1,1955—approximately 2,500 workers formerly under the general schedule were transferred to wage-board classifications. The effect of inclusion in the general schedule of the 35,000 former CPC workers on the measures of change in salary scales and on changes in average salary rates has been minimized by the fact that the year-to-year changes in these indexes do not reflect shifts in the proportion of workers in various grades and hence do not reflect the increase in the number of workers in the lower general schedule grades resulting from the transfer. The index of average salaries, however, does reflect the transfer of CPC employees but the effect was small since the transferred workers amounted to only about 4 percent of the total number under the general schedule. The basic increases authorized by the Congress in 1955 amounted to 7.6 percent, as indicated earlier. Only slight gains—amounting to 0.2 percent—resulted from merit or length-of-service increases in pay between July 1954 and July 1956. Hence, average salary rates, affected by lengthof-service increases as well as by legislative changes in basic salary scales, rose 7.8 percent. Shifts in the number of employees in the different pay grades, notably proportionately larger numbers in the higher grades, accounted T able 3.— P ercen t in crea ses in F ed era l classified e m p lo y e e s * sa la ries , i n average ea rn in g s o f fa c to r y p rod u ctio n w ork ers a nd r a ilw a y office e m p lo ye es , a nd in the C P I , a nd 1 9 5 4 - 5 6 Item F ed e ra l classified em p loy ees: B a sic p a y scales (affected b y legislation o n l y ) . . . A v erage sa la r y rate s (affected b y legislation an d in-grade in creases)........................................................ A verage salaries (affected b y legislation , in-grade in creases, a n d changes in occu p atio n al or grade com position o f classified em p lo y ees)..................... F a c to r y produ ction w orkers: A verage w eekly earn in g s.............................................. A verage ho u rly earn in gs (excluding o v e rtim e ).. . R ailw a y office em ployees (straigh t-tim e m o n th ly earn ings *): A ll em p loy ees..................................................................... D iv isio n officers, a ssistan ts, a n d sta ff a ss is ta n ts.. C h ief clerks a n d oth er su p e r v iso r s1.......................... O ther clerical em ployees *............................................. C o n su m er P rice I n d e x . . ...................................................... 1 9 3 9 -5 6 A u g u st 1939 J u l y 1954 to to J u l y 1956 J u l y 1956 79.1 7 .6 88.3 7 .8 111 10.1 230 200 11.4 8 .0 127 102 104 134 97 7.7 14.8 9 .3 6 .0 1 .6 1 C o m p u ted b y B u re a u o f L a b o r S ta tistic s from In te rsta te C om m erce C o m m ission M -300 rep orts. T h e av erage w as co m p u ted b y d iv id in g to tal com p en satio n for stra ig h t tim e a c tu ally w orked b y th e n u m b er o f em p loy ees w ho received p a y d u rin g the m on th . 1 P rofessional a n d sub p rofession al assistan ts, su p erv iso ry or chief clerks (m ajo r d ep artm e n ts), chief clerks (m inor d ep artm e n ts), a ssista n t ch ief clerks, an d su p erv isin g cash iers. » C lerk s an d clerical sp ecialists, clerks, m ech an ical device o perators (office), sten ograph ers a n d secretaries, sten ograph ers an d ty p ists, trav elin g a u d ito rs o r a c c o u n ta n ts, a n d m essen gers a n d officeboys. 17 for a further 2.3-percent rise in average salaries between mid-1954 and mid-1956, bringing the total increase in average salaries to 10.1 percent (table 1). The most pronounced change in the employment pattern was a decline in the number of workers in grades 1 and 2. While about 10,000 new workers, in addition to the 35,000 transferred CPC workers, were added to the general schedule, the total number employed in these grades fell by almost 12,000 (from 12.6 to 9.6 percent of the total). During the same 2-year period, the number of workers classified in the two immediately higher grades (GS-3 and GS-4) increased by about 26,000 (from 36.7 to 37.8 percent), with the gain being shared equally by the two grades. The proportion of workers in grades GS-11 through GS-15 also rose (table 2). Salary adjustments for Federal classified em ployees from mid-1954 to mid-1956 were sub stantially greater than the increase in the Consumer Price Index, but they were somewhat 18 T able 4.— M i n i m u m a nd average s a l a r i e s 1 o f F ed era l classified e m p lo y e e s , b y grade, 1 9 3 9 , 1 9 6 0 , 1 9 6 1 , a nd 1 9 5 4 - 5 6 A u g u st 1939 Sch edule a n d grade G en eral schedule: Q S-1: M in im u m sala ry rate ............... A verage sa la r y .................. .......... G S -2 : M in im u m sala ry ra te .............. A verage sa la ry ............ ............... G S -3 : M in im u m sala ry ra te ............ .. A verage sa la ry ........................... G S -4 : M in im u m sala ry rate _______ A verage sa la ry ______________ G S -5 : M in im u m sala ry rate .............. A verage sa la ry ______________ G S -6 : M in im u m salary ra te _______ A verage sala ry ...... ..................... G S -7 : M in im u m salary ra te _______ A verage sala ry ...... ..................... G S -8 : M in im u m salary rate ............... A verage sa la ry ........ ................... G S -9 : M in im u m salary r a t e . . . ......... A verage sa la ry ........................... G S-10: M in im u m salary ra te .............. A verage sa la ry ............................ G S-11: M in im u m salary rate _______ A verage sa la ry ........................... G S-12: M in im u m salary ra te _______ A verage sa la ry ........................... G S-13: M in im u m salary rate .............. A verage sa la ry ............................ G S-14: M in im u m sala ry rate ............... A verage sa la r y ............................ G S -1 5: M in im u m sala ry rate ............... A verage sa la ry .................. .......... G S-16: M in im u m sala ry r a t e .............. A verage s a la r y .......................... G S-17: M in im u m sala ry rate ............... A verage sa la ry .......... .................. G S-18: M in im u m sala ry rate ............... A verage sa la ry ............................ 4 $1,180 1,223 1,440 1,489 1,620 1,683 1,800 1,867 2,000 2,099 2,300 2,414 2,600 2,704 2,900 3,020 3,200 3,298 3,500 3,620 3,800 3,974 4,600 4,797 5, GOO 5,793 6,500 6,850 8,000 8,460 00 00 00 00 00 (•) J u l y 8, 1951 J u l y 1, 1950 $2,200 2,356 2,450 2.639 2,650 2,866 2,875 3,103 3,100 3,405 3,450 3,780 3,825 4,154 4,200 4,553 4,600 4,923 5,000 5,279 5.400 5,734 6,400 6,759 7,600 7,931 8,800 9,150 10,500 10,577 11,200 11,232 12,200 12,288 14,000 14,000 J u l y 1, 1954* $2,500 2,596 2,750 2,861 2,950 3,119 3,175 3,398 3,410 3,681 3,795 4,111 4,205 4,495 4,620 4,942 5,060 5,346 5,500 5,741 5,940 6,230 7,040 7,360 8,360 8,652 9,600 9,880 10,800 11,245 12,000 12,044 13,000 13,045 14,800 14,800 $2,500 2,624 2,760 2,954 2,950 3,198 3,175 3,463 3,410 3,813 3,795 4,228 4,205 4,574 4,620 5,043 5,060 5,400 5,500 5,879 5,940 6,289 7,040 7,415 8,360 8,710 9,600 9,941 10,800 11,198 12,900 12,225 13,000 13,139 14,800 14,800 J u l y 1, 1955 $2,690 2,013 2,960 3,186 3,175 3,446 3,415 3,738 3,670 4,129 4,080 4,566 4,525 4,960 4,970 5,449 5,440 5,825 5,915 6,344 6,390 6,768 7,570 7,975 8,990 9,381 10,320 10,682 11,610 12,034 12,900 13,125 13,975 14,122 14,800 14,800 J u l y 1, 1956 $2,690 2,942 2,960 3,157 3,175 3,434 3,415 3.737 3,670 4,128 4,080 4,561 4,525 4,967 4,970 5,477 5,440 5,831 5,915 6,361 6,390 6,773 7,570 7,966 8,990 9,385 10,320 10,682 11,610 12,052 12,900 13,135 13,975 14,134 7 14,800 7 14,800 P ercen t change * to J u l y 1, 1956, from — A u g u st 1939 J u l y 1, 1950 J u l y 8, 1951 J u l y 1, 1954 128.0 140.6 105.6 112.0 96.0 104.0 89.7 100.2 83.5 96.7 77.4 88.9 74.0 83.7 71.4 81.4 70.0 76.8 69.0 75.7 68.2 70.4 64.6 66.1 60.5 62.0 58.8 55.9 45.1 42.4 (•) 00 CO 00 00 00 22.3 24.9 20.8 19.6 19.8 19.8 18.8 20.4 18.4 21.2 18.3 20.7 18.3 19.6 18.3 20.3 18.3 18.4 18.3 20.5 18.3 18.1 18.3 17.9 18.3 18.3 17.3 16.7 10.6 13.9 15.2 16.9 14.5 15.0 5.7 5.7 7 .6 13.3 7 .6 10.3 7.6 10.1 7.6 10.0 7 .6 12.1 7.5 10.9 7.6 10.5 7 .6 10.8 7.5 9.1 7.5 10.8 7.6 8.7 7 .5 8 .2 7 .5 8 .5 7.5 8.1 7 .5 7.2 7.5 9.1 7 .5 8 .3 0 0 7 .6 12.1 7 .6 6 .9 7 .6 7 .4 7 .6 7 .9 7 .6 8 .3 7.5 7 .9 7 .6 8 .6 7 .6 8 .6 7.5 8 .0 7.5 8 .2 7 .6 7.7 7 .5 7 .4 7.5 7.7 7.5 7 .5 7.5 7.6 7.5 7 .4 7 .5 7 .6 0 0 J u l y 1, 1955 0 1.0 0 - .9 0 - .3 0 (s) (») (s) 0 0 - .1 0 .1 0 .5 0 .1 0 .3 0 .1 0 - .1 0 0 0 0 0 0 .1 .1 .1 0 0 1 A verage salaries were ob tain ed b y w eightin g each sala ry step w ith in the grad e b y the n u m ber of em ployees a t th a t step . In other w ords, th ey reflect th e effect of increases in basic sala ry scales a n d of m erit increases in p a y w ith in the grade for each period. ■ Increase u n less preceded b y a m in u s sign. * D a ta include form er C P C em ployees tran sferred in to the schedule an d exclu de em ployees tran sferred from the general schedule in to wage-board classification s. O n ly in grade 1 (where the average w as low ered from $2,632 to $2,624) d id these tran sfers change the averages b y m ore th an $1. 4 T h e m in im u m w as co m p u ted b y w eightin g e q u ally the b ase p a y for each of the 3 grades (S P -1 , S P -2 , an d C A F -1 ) w hich were com bin ed u n d er the general schedule. 8 L e ss th an 0.05 percent. • G rad es 16, 17, an d 18 were created u n d er the C lassification A ct of 1949 (O ct. 28,1949). 7 L egislatio n p assed in J u l y 1956 raised th e rate for g rad e 18 to $16,000. less than the rise in earnings of women office clerical workers in five major metropolitan areas.3 Comparisons with other groups of workers are presented in table 3, but no attempt has been made to show the increases in either salary scales in private industry or in prices that have occurred since July 1956. For the entire period since 1939, salary increases of employees under the Federal Classification Act have not kept pace with average salaries of railway office employees. Likewise, over the same period (1939-56), salaries of employees subject to the Classification Act have not increased as much as the Consumer Price Index except when measured by the index of average salaries, which takes into account shifts in the proportions of employees within the classified grades. The increase, as reflected by this index, amounted to 111 percent as against a 97-percent rise in the Consumer Price Index. An analysis of the movement of salary rates of individual general schedule grades since 1939 indicates that only in grades 1 and 2 have basic salary rates and accompanying within-grade in creases been greater than the rise in the Consumer Price Index. The rise in average salaries from 1939 to 1956 amounted to about 140 percent in grade 1 and 112 percent in grade 2. It was 3 Straigh t-tim e w eekly p a y of wom en office clerical w orkers rose a s follows: Per P er cent cent A tla n ta ......... ............... ................. C h icag o ........................ ................. C le v e lan d .................... ................. L o s A n geles-L o n g B e a ch ___ .. N ew Y o rk C it y ........................ .. 8 .5 8.0 10.6 8 .5 9 .6 T h e office w orker indexes, b ased on d a ta from the B u re a u ’s occupational w age su rv ey s, m easure changes in earnings w ithin the sam e occupation an d hence are m ost com parable to the in dex of average sala ry rates for F ed eral em ployees. Inform ation for these cities w as collected in the following periods: A tlan ta— M arch 1954 a n d A p ril 1956; C hicago— M arch 1954 a n d A p ril 1956; C levelan d— O ctober 1954 a n d O ctober 1956; L o s A n geles-L on g B each —M arch 1954 a n d M arch 1956; N ew Y o rk C ity —F eb ru ary 1954 a n a A p ril 1 9 5 6 * 3 , P *g ® F o r d ata c o v e rin g 2 1 j. th e p e r io d 195 4 —5 7 * se e fo o tn o te 19 progressively less for the higher grades, with the increase in grade 15 amounting to 42 percent (table 4 and chart). These marked differences in salary trends among grades resulted from the provision in pay legislation of (a) increases that were identical in dollars irrespective of grade or (b) uniform per centage increases in some grades combined with a minimum and maximum dollar ceiling that re sulted in higher percentage increases in the lowest grades and lower proportionate increases in the higher grades. Only the 1955 legislation provided uniform percentage adjustments for all grades (except GS-18, where there was no increase until 1956).4 As a result of this trend, the highest salary in the general schedule in 1954 was about 6 times the lowest, whereas in 1939 the ratio was almost 9. The adjustments put into effect in 1955, combined with the 1956 advance in the maximum salary for grade 18, did not further widen the range of rates for white-collar workers: The new maximum rate for grade 18—$16,000— was still only 6 times the minimum rate for grade l.5 4 P u b lic L a w 854 (84th C on g., 2d sess.), approved J u ly 31, 1956, increased basic p a y rates for certain F ed eral officials, in cluding those in grade G S-18. 5 T h e top grade in 1939 w as com parab le to G S-15 an d w as G S-18 in 1956; the b ottom grade in 1939 w as S P -1 . T h e ratio betw een the top G S-15 salary (excluding longevities) a n d the m in im u m G S-1 rate in 1956 w as ab o u t 4% to 1. If the m easurem en t of the sp read in grades in 1939 in cluded the C P O grades, the narrow ing w ould be even m ore pronounced. F e d e ra l C la s s ifie d E m p lo y e e s ’ S a la ry C h a n g e s, 1 9 5 7 data contained in the article "F e d e ra l C l a s sified E m p loyees’ Salary Changes, 1 9 5 4 - 5 6 . ” The following tables and revised foot note 3 bring up to date through July 1957 the T A B L E 1. Indexes of b a s ic pay s c a l e s , a v e ra g e s a la r y r a t e s , and a v e r a g e s a l a r i e s 1 of F e d e r a l c la s s ifie d em p lo y ees, 1939—57 (A verage 1947—49 - 100) A v e rag e s a la r y r a te s A v e rag e s a la r i e s B a s ic pay sc a le s A ll A ll C ra fts, C la s s i f i G en eral C la ssifi p ro te c tiv e , cation A ct cation A c t schedule cu stod ial em olov ees em plovees P e rio d A ugust 1939 ------------------June 30 , 1 9 4 5 ----------------Ju ly 1, 1946 ...................... Ju ly 1, 1947 ........................ Ju ly 15,, 1948 ----------------Ju ly 1, 1949 - ------Ju ly 1, 1 9 5 0 ............................. - ............. Ju ly 8, 1951 Ju ly 1, 1952 ------------------Ju ly 1, 1953 - — .................. Ju ly 1, 1 9 5 4 ........................ — Ju ly 1, 1 9 5 5 ------------------Ju ly 1, 1 9 5 6 ----------Ju ly 1, 1 9 5 7 — ............. .......... 6 9 .6 7 0 .4 9 3 .2 9 3 .2 103. 4 1 0 3 .4 1 0 7 .7 118. 5 118.5 1 1 8 .5 118. 5 (4 ) (4 ) (4 ) 70.9 7 1.0 93. 5 9 3 .5 103. 3 103. 3 1 07.4 118. 0 118. 0 118. 0 118. 0 5 127. 0 127.0 127.0 6 2 .0 6 8.3 91. 1 91. 1 10 4 .4 104. 4 109.2 1 21.0 121.0 121.0 121.0 A ll C ra fts, C la s s i f i G en eral p ro te c tiv e , schedule cation Act cu sto d ial em plovees 6 8 .2 2 69. 0 90. 6 92. 3 103. 5 104.2 109. 6 1 19. Ir 119. 6 120. 7 121. 8 (4 ) <;> (4 ) <!> (4 ) (4 ) 69. 3 2 69. 4 90. 8 92. 5 103. 5 104. 0 109. 4 118. 8 119. 0 120. 0 121. 1 * 1 3 0 .6 130. 5 130. 6 5 9 .5 2 65. 5 88. 8 90. 3 1 0 4 .4 105. 3 112.2 123. 8 124. 7 126. 1 127. 3 (4 ) (4 ) (4 ) 6 1 .4 n 87. 7 9 2 .3 103. 1 104. 6 112. 6 12 1 .4 124.0 127. 1 1 2 9 .4 (4 ) (4 ) (4 ) C ra fts, G en eral p ro te c tiv e , schedule cu stod ial 64.2 (3 ) 87. 5 9 2 .6 103. 0 104. 5 112. 3 120. 6 123. 0 126. 3 128. 8 s 1 4 0 .2 1 4 1 .8 144. 8 58. 7 (3 ) 9 0 .2 9 0 .2 104. 3 10 5 .4 112. 8 125. 3 127.2 129. 1 129. 3 (4 ) (j> (4 ) 1 B a s ic pay s c a le s r e fle c t only statu to ry changes in s a l a r i e s , while a v e ra g e s a la r y r a te s show in addition the effe ct of m e r it or in -g ra d e s a la r y in c r e a s e s . A verag e s a la r ie s m e a su r e the effect not only of statu to ry changes in b a s ic pay s c a le s and in -g ra d e s a la r y in c r e a s e s but the effect of changes in the proportion of w o rk ers em ployed in the v ario u s pay g ra d e s . 2 E stim a te d by a ssu m in g the sam e distribu tion of em ployees am ong g ra d e s and ste p s within g ra d e s in 1945 a s in 1939. Since th ere w as little or no in c re a s e in a v e ra g e r a te s b e ca u se of in -g rad e in c r e a s e s during this p erio d , it w as assu m e d that the change in b a s ic pay s c a le s w as v irtu ally the sam e a s in a v e ra g e s a la r y r a te s . 3 Not a v a ila b le . 4 Index discontinued, a s the g en eral schedule now co v ers a ll C la ssific a tio n A ct em p loy ees. 5 Data have been ad ju sted to include som e em ploy ees fo rm e rly under the C PC schedule who a r e now covered by the g e n e ra l sch edule; about tw o-thirds of the em ployees w ere tr a n sfe r re d to w ag e-b o ard c la s sific a tio n s and the rem aining onethird to the g en era l sch ed ule. T A B L E 2. P erc en tag e distribu tion of g e n e ral schedule em ploy ees by g ra d e , se le c te d p e rio d s, 1939—57 P erc en t of w o rk ers in— Item A ugust 1939 Ju ly 1, 1946 Ju ly 1, 1950 Ju ly 8, 1951 Ju ly 1, 1954 GS-1 ...................................... G S - 2 ....................................... — G S - 3 ............................................ G S-4 ....................................... G S-5 and G S - 6 ........................ G S-7 and G S - 8 ........................ GS-9 and G S - 1 0 -------------G S -1 1 .................................. GS-12 to G S-1 5 ...................... G S-1 6 to G S-1 8 ..................... 13. 1 18. 1 14. 7 1 1 .5 17.2 1 0 .4 6 .8 3. 8 4 .4 - 2 .5 19.3 22. 8 13. 6 13.9 1 1 .6 7 .6 4. 0 4. 7 - 1. 8 14. 5 2 0 .6 1 4.8 14. 8 12.3 9 .2 5. 1 6 .9 (M 1 .4 1 6 .6 21. 8 13.9 14. 5 11. 7 8. 7 4. 8 6. 6 (1) 1.1 1 1 .5 2 1 .0 15. 7 14 .9 12. 1 10. 1 5. 8 7. 8 .1 T o t a l -------------------- ----- 1QQ.0 100.0 100.0 100.0 10 0 .0 N um ber of e m p lo y e e s------ 2 3 4 ,0 6 7 893,653 701,824 885,925 863,462 1 L e s s than 0. 05 p ercen t. N OTE: B e c a u se of rounding, to tals do not n e c e s s a r ily equal 100. 20 Ju ly 1, 1955 1. 1 10. 9 2 0 .9 15. 8 14. 8 11. 8 10. 1 6. 1 8 .4 .1 Ju ly 1, 1956 Ju ly 1, 1957 0. 7 8 .9 2 1 .4 1 6 .4 15.2 11.9 10.2 6 .3 8 .9 .1 0. 5 7.2 2 0 .8 16 .8 15. 7 11.5 10. 6 6 .9 9 .9 .1 100.0 100. 0 100. 0 886,512 9 0 8 ,5 3 5 927,822 21 T A B L E 3. P erc en t in c r e a s e s in F e d e r a l c la s sifie d em p loy ees* s a la r i e s , in a v e ra g e earn in gs of facto ry production w o rk ers and railw ay office em p lo y ees, and in the C PI, 1939 to 1957 and 1954 to 1957 P erc en tag e in c r e a s e s Item A ugust 1939 to Ju ly 1957 F e d e r a l c la s sifie d em p lo y ees: B a s ic pay s c a le s (affected by le g islatio n o n ly )--------------------------------------------------------A v e rag e s a la r y r a te s (affected by le g islatio n and in -g rad e in c r e a s e s ) ------------------------------A verag e s a l a r i e s (affected by le g isla tio n , in -g ra d e in c r e a s e s , and changes in occupational or grad e com position of c la s sifie d e m p lo y e e s ) -------------------- ——■ ------F a c to ry production w o rk e rs: A verag e w eekly e a r n in g s -------------------------------A verag e hourly earn in g s (excluding o v e r t i m e ) ------------------------------------------------R ailw ay office em ployees (straig h t-tim e monthly ea rn in g s: 1 ) D ivision o ffic e r s , a s s is t a n t s , and sta ff a s s is t a n t s ------------------------------------------------C hief c le rk s and other su p e r v iso r s 2 --------------Other c le r ic a l em ployees 3 ----------------------------C onsu m er P r ic e In d e x --------------------------------------- ! j Ju ly 1954 to Ju ly 1957 79.1 7. 6 88. 5 7 .9 126 1 2 .4 244 1 5.9 218 14.2 150 18. 3 117 23. 3 18. 0 16. 7 4 .9 120 158 103 1 Computed by B u reau of L ab or S ta tistic s from In terstate C om m erce C o m m issio n M -300 r e p o r ts. The av e ra g e w as computed by dividing total com pensation for stra ig h t tim e actu a lly w orked by the num ber of em ploy ees who rece iv ed pay during the month. 2 P ro fe ssio n a l and su b p ro fe ssio n a l a s s is t a n t s , su p e r v iso r y or chief c le rk s (m ajor d ep artm en ts), chief c le rk s (m inor d epartm en ts), a s s is ta n t chief c le rk s , and su p erv isin g c a s h ie r s . 3 C le rk s and c le r ic a l s p e c ia lis t s , c le r k s , m echan ical device o p e rato rs (office), sten og ra p h e rs and s e c r e t a r ie s , ste n o g rap h e rs and ty p ists, trav elin g au d ito rs or accou ntants, and m e sse n g e r s and office bo y s. 3 The data on w eekly pay of women c le r ic a l w o rk ers, p resen ted in footnote 3 on page 22, have been re v ise d . S traig h t-tim e weekly pay of women office c le r ic a l w o rk ers r o se between 1954 and 1957 a s follow s: P erc en t A tlanta ----------------------------- 12.2 C h ic a g o ----------------------------- 13 .9 C le v e la n d -------------------------- N.A. P erc en t L o s A n geles—Long B e a c h ------ 15.2 New York C it y --------------------- 15.3 The office w orker in d ex es, b ase d on data from the B u r e a u 's occupational wage su r v e y s, m e a su r e changes in earn in gs within the sam e occupation and hence a r e m o st co m p arab le to the index of a v e ra g e s a la r y r a te s fo r F e d e r a l em p loy ees. Inform ation for these c itie s w as co llected in the following p e rio d s: A tlanta M arch 1954 and A p ril 1957; C hicago - M arch 1954 and A p ril 1957; C leveland not su rveyed in 1957; L o s A n geles—Long Beach - M arch 1954 and M arch 1957; New Y ork C ity - F e b ru a ry 1954 and A p ril 1957. Federal Classified Employees’ Salary Changes, 1955—58 policy of hiring workers in certain fields at rates above the minimum for their grade. The increase in average salaries attributable to changes in the grade composition of the Federal labor force was spread over the 3-year period. Over the period from mid-1955 to mid-1958, all three measures of Federal Classified em ployees’ salaries rose more than the 8-percent advance in the Bureau of Labor Statistics’ Con sumer Price Index. However, two measures of Federal pay—basic pay scales and average salary rates—rose less than the earnings of women office employees in private industry (whose increases in certain major labor markets ranged from 13.7 to 16.4 percent) and less than the average hourly earnings of factory production workers (13.7 per cent) .2 The third measure of Federal pay— average salaries—increased less than the earnings of railway office employees (28.2 percent), but more than the earnings of women office workers in industry generally. The average salary figure for Federal workers is appreciably affected by pay scales of Federal employees whose salaries were determined by the Classification Act were raised by an average of 10.1 percent,1 by legislation enacted by the 85th Congress in June 1958. This general pay raise, retroactive to the first pay period of January 1958, was the first change in salary scales under the Classification Act since 1955, except for an increase in the maxi mum salaries for grades 17 and 18 in 1956. (See table 1.) During the period intervening between these general pay increases, average salary rates rose about 1 percent as a result of in-grade or automatic length-of-service adjustments, while changes in the proportion of workers in various pay grades added about 6 percent to average salaries. Hence, the total rise in average salary rates from July 1955 to July 1958, reflecting both the effect of legislation and in-grade pay increases, amounted to 11 percent, and the total rise in average salaries, affected by those factors plus changes in the proportion of workers in various pay grades, was 17.4 percent. The increase in average salary rates resulting from in-grade ad justments was concentrated in the year ending July 1958 and was traceable mainly to a new B a s ic 1 E ac h scale w as raised 10 percen t, r o u n d e d to m u ltip les o f $5. 2 T h e sm aller increase in w eekly earn ings of facto ry p ro d u ctio n w orkers w as due to the temporary reduction in their hours of work during late 1957 and early 1958. T a b le 1. I n d e x e s o f b a s ic p a j s c a le s , a v e r a g e s a la r y r a t e s , a n d a v e r a g e s a la r ie s 1 o f F e d e r a l c la ss ifie d e m p lo y e e s, 1 9 3 9 -5 8 [A verage 1947-49=100] B a sic p a y scales P eriod A u g u st 1939................ Ju n e 30,1945............... J u l y 1,1946................. J u l y 1, 1947................. J u l y 15, 1948............... J u l y 1, 1949................. J u l y 1, 1950................. J u l y 8, 1951............... .. J u l y 1, 1952................. J u l y 1, 1953................. J u l y 1, 1954................. J u l y 1, 1955................. J u l y 1,1956................. J u l y 1, 1957................. J u l y 1,1958................. A ll C lassifica tion A ct em ployees 69.6 70.4 93.2 93.2 103.4 103.4 107.7 118.5 118.5 118.5 118.5 (4) (4) (4) (4) G eneral schedule 70.9 71.0 93.5 93.5 103.3 103.3 107.4 118.0 118.0 118.0 118.0 8 127.0 127.0 127.0 139.8 A verage sala ry rates C rafts, pro tective, cu stod ial A ll C lassifica tion A ct em ployees 62.0 68.3 91.1 91.1 104.4 104.4 109.2 121.0 121.0 121.0 121.0 68.2 2 69.0 90.6 92.3 103.5 104.2 109.6 119.3 119.6 120.7 121.8 (4) (4) (*) (4) (4) (*) (4) (4) i B a sic p a y scales reflect on ly sta tu to ry changes in salaries, w hile average sala ry rate s show in ad d itio n th e effect of m erit or in-grade sala ry in creases. A verage salaries m easu re the effect n o t on ly of sta tu to ry changes in b asic p a y scales an d in-grade sa la ry in creases b u t the effect of changes in the p ropor tion o f w orkers em p loy ed in th e vario u s p a y grad es. * E stim a te d b y assu m in g the sam e d istrib u tio n of em ployees am on g g rad e s a n d step s w ithin grad es in 1945 a s in 1939. Sin ce there w as little or n o in crease in average rate s b ecau se of in-grade in creases d u rin g th is p erio d , it G eneral schedule 69.3 2 69.4 90.8 92.5 103.5 104.0 109.4 118.8 119.0 120.0 121.1 8 130.6 130.5 130.6 145.0 A verage salaries C rafts, pro tectiv e, cu sto d ial 59.5 2 65.5 88.8 90.3 104.4 105.3 112.2 123.8 124.7 126.1 127.3 (4) h (4) (4) A ll C lassifica tion A ct em ployees G eneral schedule 61.4 (») (4) (4) (4) (4) 87.7 92.3 103.1 104.6 112.6 121.4 124.0 127.1 129.4 C rafts, pro tective, cu sto dial 64.2 (») 87.5 92.6 103.0 104.5 112.3 120.6 123.0 126.3 128.8 8 140.2 141.8 144.8 164.6 58.7 (3) 90.2 90.2 104.3 105.4 112.8 125.3 127.2 129.1 129.3 (4) (4) (<) (4) w as assu m ed th a t th e change in b asic p a y scales w as v irtu a lly the sam e a s in av erage sala ry rates. * N o t a v ailab le. 4 In d ex d isco n tin u ed , a s th e general schedule now covers a ll C lassificatio n A ct em ployees. * D a ta h av e been a d ju ste d to in clu d e those em ployees form erly un d er th e C P C sch ed u le w ho are now covered b y th e general sch edule; a b o u t tw o-th irds of th e em ployees w ere tran sferred to w age-board classification s a n d the re m ain in g one-third to the general sch edule. 22 23 T a b le 2 . P e r c e n t d istr ib u tio n o f g e n e r a l s c h e d u le e m p lo y e e s b y g r a d e , s e le c t e d p e rio d s , 1 9 3 9 -5 8 G eneral schedule grade A u gu st 1939 J u l y 1, 1946 J u l y 1, 1950 J u l y 8, 1951 J u ly 1, 1954 J u l y 1, 1955 J u l y 1, 1956 J u l y 1, 1957 13.1 18.1 14.7 11.5 17.2 10.4 6.8 3.8 4.4 2.5 19.3 22.8 13.6 13.9 11.6 7.6 4.0 4.7 1.8 14.5 20.6 14.8 14.8 12.3 9.2 5.1 6.9 1.4 16.6 21.8 13.9 14.5 11.7 8.7 4.8 6.6 1.1 11.5 21.0 1 15.8 14.9 12.1 10.1 5.8 7.8 .1 1.1 10.9 20.9 15.8 14.8 11.8 10.1 6.1 8.4 .1 0.7 8 .9 21.4 16.4 15.2 11.9 10.2 6.3 8.9 .1 0 .5 7.2 20.8 16.8 15.7 11.5 10.6 6.9 9.9 T o t a l_____ ________ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 N u m b er of em p loy ees........ 234.067 893, 653 701. 824 885,925 1864,126 886, 512 908, 535 927, 822 1_________________________ 2.................... ........... ................. 3____________________ _____ 4 ,................................................ 5 an d 6__________________ 7 an d 8..................................... 9 an d 10____ _____________ 11_______ ______ _________ 12 through 15____ _______ 16 through 18............. ............ (’ ) (2) 1 R ev ised . 3 L ess th an 0.05 percent. N ote: changes in grade composition, whereas the change in pay of office workers in industry excluded the effects of shifts in employment among positions. T a b l e 3 . P e r c e n t i n c r e a s e s in F e d e r a l c l a s s if ie d e m p lo y e e s ' s a l a r i e s , in a v e r a g e e a r n i n g s o f f a c t o r y p r o d u c tio n w o r k e r s a n d o ffic e e m p lo y e e s , a n d in t h e C P I , 1 9 3 9 - 5 8 an d 1 9 5 5 -5 8 Item F ed e ral classified em ployees: B a sic p a y scales (affected b y legislation o n ly ).. A verage sala ry rates (affected b y legislation an d in-grade in creases)_____________________ A verage salaries (affected b y legislation , ingrade increases, an d changes in occupation al or grade com position of classified em ployees) . F ac to ry p rodu ction w orkers: A verage w eekly earn in gs-------- --------- ---------A verage hou rly earn ings (excluding overtim e) . Office em ployees: A ll railw ay office em ployees (straigh t-tim e m o n th ly e a rn in g s)3_______________ _______ D iv isio n officers, a ssistan ts, an d staff a ssist a n ts .............. ............. ......................... ..................... .. C h ief clerks an d other su p ervisors 3.......... ............ Other clerical em ployees 4---------- ----------------W om en office clerical em ployees, selected cities (straigh t-tim e w eekly s a la r ie s ) :3 B o sto n ............................................................................... N ew Y o rk C it y ____________________ __________ P h ila d e lp h ia _________________________________ A tla n ta ------ -------------------------- ----------------- D a lla s_____________ ________________ _________ M e m p h is------ -----------------------------------------C h ic a g o .......................................................................... C lev elan d __________ _________ _______________ M in n eap o lis-S t. P a u l_____ __________________ L o s A n geles-L on g B e a c h _____________________ P o rtlan d , O reg.............................................. ............... S an F ra n c isc o -O ak la n d _________________ ____ C on su m er Price In d e x ....................... ..................... .......... A u g u st 1939 1 J u ly 1955 to J u ly 1958 to Ju ly 1958 97.2 1 0 .1 109.2 1 1 .0 156 17.4 262 232 9.4 13.7 129 135 177 28.5 («) (•) 00 (•) (0) 00 (#) (•) 00 00 00 00 110 21.9 14.3 15.3 16.4 16.1 14.8 13.7 15.2 19.6 13.7 14.8 14.5 14.6 8 .0 3 D a ta for factory p rodu ction w orkers a n d for railw ay office em ployees w as co m puted from J u l y 1939. 3 C o m p u ted b y B u re a u of L ab o r S ta tistic s from In terstate Com m erce C om m ission M -300 reports. T h e average w as com p u ted b y d iv id in g total com p en sation for straig h t tim e actu ally w orked b y the n u m ber of em ployees who received p a y du rin g the m onth. 3 In clu d es professional an d su bprofession al a ssistan ts, su p ervisory or chief clerks (m ajor d ep artm e n ts), chief clerks (m inor d ep artm en ts), a ssistan t chief clerks, an d su p ervisin g cashiers. 4 In clu d es clerks an d clerical sp ecialists, clerks, m ech an ical device opera tors (office), sten ographers and secretaries, sten ographers an d ty p ists, travel ing au d ito rs or accou n tan ts, an d m essengers an d office boys. 3 Su rv ey periods were as follows: B oston , A p ril 1955 an d Sep tem b er 1957; N ew Y o rk C ity , M arch 1955 an d A p ril 1958; P h iladelp h ia, N ovem ber 1954 an d O ctober 1957; A tla n ta , M arch 1955 an d M a y 1958; D a lla s, Sep tem b er 1954 an d O ctober 1957; M em p h is, F eb ru ary 1955 an d Ja n u a r y 1958; C hicago, A p ril 1955 an d A p ril 1958; C levelan d, O ctober 1954 an d Ju n e 1958; M in n e ap o lis-S t. P au l, N ovem ber 1954 an d Ja n u a r y 1958; L o s A n geles-L on g B each , M arch 1955 an d M arch 1958; P o rtlan d , O reg., A p ril 1955 an d A p ril 1958; S an F ran cisco-O ak lan d , Ja n u a r y 1955 an d Ja n u a r y 1958. 3 D a t a n ot available. J u ly 1, 1958 0 .4 5.8 19.5 16.9 15.7 11.6 11.3 7.6 11.1 100.0 921,153 B ecau se of roun din g, to tals m a y n ot eq u al 100. 1958 Legislative and In-Grade Increases The Federal Employees Salary Increase Act of 1958 3 was signed by the President on June 20, 1958. Like the 1955 act, it provided for retroac tive payment of the increased scales; the new rates were made effective from the first pay period in January 1958. This act and other legislation passed in May 1958 also raised the pay of certain other Federal workers whose rates are determined directly by congressional action.4 The rise in classified employees’ average salary rates from mid-1957 to mid-1958 resulting from an increase in the proportion of workers at the higher pay steps within a grade was concentrated in the higher pay grades. It occurred despite an increase in the number of workers employed in these grades; the entrance rates at which new workers usually start ordinarily would reduce average salaries within a grade. In December 1957, the Civil Service Commission increased rates within certain scientific and engineering occupations for all em ployees, even those newly hired, to the top step of their respective grades; it was this action that was responsible for most of the rise in average salary rates traceable to in-grade pay increases. 5 3 P u b lic L a w 462, 85th C o n g., 2d sess. 4 T h ese w orkers in clu d ed legislativ e a n d ju d icial em ployees, em ployees o f the D ep artm en t of M edicine a n d S u rgery o f the V eteran s A d m in istratio n , the F oreign Service, th e P o stal F ield Service, an d the A rm ed Forces. M o st of the changes affecting the P o sta l F ield Service were m ad e in a bill signed in M a y which pro v ided increases av eragin g 7H percent, p lu s an add itio n al 2M percent “ tem p o rary ” cost-of-living increase for w orkers in the 6 low est grades; h o w ev er,P u b lic L a w 462 exten ded the cost-of-living increase to the rem ain in g grades o f the P o sta l F ield Service. C o m p en satio n o f m em bers of the arm ed services w as increased b y from 6 to 47 percent, depen din g on length of service an d ran k , b y another bill also sign ed in M a y . T h e r a y o f “ blue-coHar” em ployees o f the F ed eral G overnm en t w as n ot affected b y these bills since C on gress h as delegated au th o rity to set their p ay to wage boards. 5 F o r a d escription o f the C iv il Service regu lation s raisin g p a y to the top o f the grad e, see W age C h ron ology N o . 13, F ed eral C lassificatio n A ct E m p lo y ees, S u p p lem en t N o . 2, 1952-58 (in M o n th ly L a b o r R ev iew , D ecem ber 1958, p p . 1382-1389). 24 Changes in Employment Among Grades As indicated earlier, a substantial part of the increase in average salaries between mid-1955 and mid-1958 was traceable to an increase in the pro portion of workers in the higher salaried grades (table 2). The most notable changes were a reduc tion in the proportion of workers classified in grade GS-2, from 11 to 6 percent of all classified workers, and an advance in the proportion in grades 12 through 15 from 8 to 11 percent. A statement by the chairman of the U.S. Civil Service Commission, Harris Ellsworth, before the Subcommittee on Manpower Utilization of the House Committee on Post Office and Civil Service in December 1958 mentioned a number of tech nological and functional factors that have con tributed to changes in grade composition of the Civil Service during the period since the early 1940's. He stated that “The adoption of improved operating methods and techniques and the mech anization pf work processes have influenced grade patterns in the Federal service over a period of years. Routine tasks best lend themselves to mechanization, and thousands of lower grade posi tions have disappeared because of photocopy equipment, letter-writing machines, microfilm, addressing machines, and data-processing equip ment. . . . As the Government has been forced to hire additional scientists in such advanced fields as physics, electronics, and aeronautics, the aver age grade level has been influenced accordingly.” He also pointed out that with development of a tight labor market, there has been a shift in classi fication of positions in borderline cases. Finally, Mr. Ellsworth indicated that during the depression of the 1930's, Government employees' positions were classified very conservatively to maintain some balance between Government and private salaries but that, subsequently, as industrial sal aries increased more rapidly than the salaries of employees in the Government service, a more liberal approach to classification had been adopted. T a b le 4 . M in im u m a n d a v e r a g e s a la r ie s 1 o f F e d e r a l c la ss ifie d e m p lo y e e s , b y g r a d e , s e le c te d p e rio d s, 1 9 3 9 -5 8 G eneral schedule grade 1: 2: 3: 4: 5: 6: 7: 8: 9: 10: 11: 12: 13: 14: 15: 16: 17: 18: M in im u m sala ry rate ---A verage sa la ry .................... M in im u m salary ra te ___ A verage sa la ry ........ ........... M in im u m salary ra te ___ A verage sa la r y _____ ____ M in im u m sa la ry ra te ___ A verage sa la r y ................ -M in im u m sala ry ra te ___ A verage sa la ry .................... M in im u m salary ra te ___ A verage sa la ry ............ ........ M in im u m sala ry ra te ___ A verage sa la ry _____ ____ M in im u m salary ra te ___ A verage sa la ry .................. .. M in im u m sala ry ra te ___ A verage sa la ry ...... ............. M in im u m salary ra te ___ A verage s a la r y ................... M in im u m salary ra te ___ A verage sa la ry ------------M in im u m sala ry ra te ___ A verage sa la r y ...... ............. M in im u m salary ra te ___ A verage s a la r y ................... M in im u m salary ra te ___ A verage sa la r y .................... M in im u m salary ra te ___ A verage s a la r y ................... M in im u m salary ra te ___ A verage sa la ry .................... M in im u m salary ra te ___ A verage sa la ry ........ ........... M in im u m salary ra te ___ A verage s a la r y ................... A u g u st 1939 3 $1,180 1,223 1,440 1,489 1,620 1,683 1,800 1,867 2,000 2,099 2,300 2,414 2,600 2,704 2,900 3,020 3,200 3,298 3,500 3,620 3,800 3,974 4,600 4,797 5,600 5,793 6,500 6,850 8,000 8,460 (3) (3) (3) (3) (3) (3) J u ly 1, 1950 $2,200 2,356 2,450 2,639 2,650 2,866 2,875 3,103 3,100 3,405 3,450 3,780 3,825 4,154 4,200 4,553 4,600 4,923 5,000 5,279 5,400 5,734 6,400 6,759 7,600 7,931 8,800 9,150 10,000 10,577 11,200 11,232 12,200 12,288 14,000 14,000 J u l y 8, 1951 $2,500 2,596 2,750 2,861 2,950 3,119 3,175 3,398 3,410 3,681 3,795 4,111 4,205 4,495 4,620 4,942 5,060 5,346 5,500 5,741 5,940 6,230 7,040 7,360 8,360 8,652 9,600 9,880 10,800 11,245 12,000 12,044 13,000 13,045 14,800 14,800 J u l y 1, 1955 $2,690 2,913 2,960 3.186 3,175 3,446 3,415 3,738 3,670 4,129 4,080 4,566 4,525 4,960 4,970 5,499 5,440 5,825 5,915 6,344 6,390 6,768 7,570 7,975 8,990 9,381 10,320 10,682 11,610 12,034 12,900 13,125 13,975 14,122 14,800 14,800 » A verage salaries were obtain ed b y w eightin g each salary step w ith in the grad e b y the n um ber of em ployees a t th a t step . In other w ords, th ey reflect the effect of increases in basic sala ry scales a n d of m erit increases in p a y w ithin the grade for each period. J u l y 1, 1957 $2,690 2,951 2,960 3,155 3,175 3,433 3,415 3, 737 3,670 4,128 4,080 4, 541 4,525 4,967 4,970 5,437 5,440 5,861 5,915 6,348 6,390 6,862 7, 570 7,952 8,990 9,388 10,320 10,710 11,610 12,093 12,900 13,189 13,975 14,208 16,000 16,000 J u ly 1, 1958 $2,960 3,260 3,255 3,498 3,495 3,804 3, 755 4,126 4,040 4, 570 4,490 5,031 4,980 5,471 5,470 5,945 5,985 6,460 6,505 6,959 7,030 7,620 8,330 8,999 9,890 10, 593 11, 355 12,042 12, 770 13,513 14,190 14,657 15,375 15,768 17,500 17,500 P ercen t change to J u l y 1, 1958, from — A u g u st 1939 150.8 166.6 126.0 134.9 115.7 126.0 108.6 121.0 102.0 117.7 95.2 108.4 91.5 102.3 88.6 96.9 87.0 95.9 85.9 92.2 85.0 91.7 81.1 87.6 76.6 82.9 74.7 75.8 59.6 59.7 (3) (3) (3) (3) (3) (3) J u ly 1, 1950 34.5 38.4 32.9 32.6 31.9 32.7 30.6 33.0 30.3 34.2 30.1 33.1 30.2 31.7 30.2 30.6 30.1 31.2 30.1 31.8 30.2 32.9 30.2 33.1 30.1 33.6 29.0 31.6 27.7 27.8 26.7 30.5 26.0 28.3 25.0 25.0 J u l y 8, 1951 18.4 25.6 18.4 22.3 18.5 22.0 18.3 21.4 18.5 24.2 18.3 22.4 18.4 21.7 18.4 20.3 18.3 20.8 18.3 21.2 18.4 22.3 18.3 22.3 18.3 22.4 18.3 21.9 18.2 20.2 18.3 21.7 18.3 20.9 18.2 18.2 J u l y 1, 1955 10.0 11.9 ia o 9 .8 10.1 10.4 10.0 10.4 10.1 10.7 10.0 10.2 10.1 10.3 10.1 8.1 10.0 10.9 10.0 9.7 10.0 12.6 10.0 12.8 10.0 12.9 10.0 12.7 10.0 12.3 10.0 11.7 10.0 11.7 18.2 18.2 J u l y 1, 1957 10.0 10.5 10.0 10.9 10.1 10.8 10.0 10.4 10.1 10.7 10.0 10.8 10.1 10.1 10.1 9 .3 10.0 10.2 10.0 9 .6 10.0 11.0 10.0 13.2 10.0 12.8 10.0 12.4 10.0 11.7 10.0 11.1 10.0 11.0 9.4 9 .4 * T h e m in im u m w as co m p u ted b y w eighting eq u a lly the base p a y for each of the 3 grad es (S P -1 , S P -2 , a n d C A F -1 ) which were com bin ed un der the general schedule. * G rad es 16, 17, an d 18 were created un der the C lassification A ct of 1949 (O ct. 28,19(49). 25 Salary Changes Since 1939 The 1958 legislation brought the total increase in basic scales for Federal Classification Act em ployees to 97 percent since 1939 (table 3). Over the same period, in-grade pay increases also raised the level of compensation; together with legislative changes, these in-grade changes advanced average salary rates about 109 percent. Average salaries, reflecting not only these two factors but shifts in the proportion of workers in various pay grades, increased 156 percent. These measures of change can be compared with an increase of 110 percent in the Consumer Price Index, 168 percent in the monthly pay of railroad office employees, and 232 and 262 percent, respectively, in the hourly and 6 See Salaries of C ity Public School Teachers, 1955-57 (in M onthly Labor Review, A p ril 1958, pp. 384-387). weekly pay of factory production workers. From the 1938-39 to the 1956-57 school year, Urban teachers’ salaries rose 132 percent.6 Salary increases since 1939 have varied widely among the various grades of the general schedule with the smallest proportionate increases taking place in the top grades and the largest in the lowest grades (table 4). Even if comparisons are limited to those grades in which significant numbers of workers are employed, increases in basic scales varied from about 75 percent in grades 13 and 14, to 126 percent in grade 2 and 116 percent in grade 3. Only the basic scales for the lowest 3 grades and average salaries for the lowest 5 grades kept pace with Jiving costs. Federal Classified Employees’ Salary Changes, 1958—60 total wage bill by $90,908,1803 (1.6 percent). The effect on salary levels of including the Nation’s two newest States was minimal; only average salary rates were changed, increasing by 0.1 per cent. Their inclusion produced minor variations in the distribution of employment at the various grades, however, because Alaska and Hawaii had a higher proportion of Federal employees in the five lowest grades and a much lower proportion in grades 12 through 15 than did the rest of the United States. L e g i s l a t i o n enacted by the 86th Congress in July 1960 increased basic salary scales of Federal employees covered by the Classification Act1 an average of 7.7 percent.2 Average salary rates rose somewhat less—7.3 percent—because the effect of the legislated salary increase was offset in part by a reduction in the proportion of workers receiving more than the minimum scale for their jobs. The general salary increase, combined with an increase in the proportion of workers in the higher grades between 1958 and 1960, ad vanced average salaries by 11.5 percent over that period. Between 1958 and 1959, the index of basic scales remained unchanged, while average salary rates declined 0.3 percent and average salaries rose 1.8 percent. (See table 1.) Federal Classification Act employees stationed in Alaska and Hawaii are included for the first time in the 1960 indexes and other data used for this report. With this addition, the total num ber of Federal employees included in this report was increased by 15,676 (1.7 percent) and the T a b le 1. I ndexes of 1 Salaries were increased by the Federal Employees’ Salary Increase Act of 1960 (P .L . 568). In 1960, there were also gains in the supplementary benefits provided Federal employees. Legislation enacted by the 86th Congress in September 1959 provided a voluntary health benefits program for Federal employees, to be partly paid for by the Government. Effective July 1,1960, the Government would contribute up to half the cost of employee member ship in a choice of several health plans, some of which continued protection after retirement and provided “ catastrophic” benefits to help finance costs of chronic or long-term illness or serious accident. 2 Each basic scale was raised 7.5 percent (rounded to the nearest $5) except the highest grade, which was raised $1,000, or 5.7 percent; in addition, in-grade increments were increased by amounts from $10 to $25, accounting for a further 0.2-percent increase. 3 Excluding cost-of-living allowances of 25 percent in Alaska and 17.5 per. cent in Hawaii provided these employees under Executive Order No.10000, B asic Sa la r y S cales , A ve r a g e Sa la r y R a te s , a n d A ver a g e Sa l a r ie s 1 of F e d e r a l C la s s if ie d E m p lo yees , 1939 a n d 1945-60 [1947-49-100] B a sic sala ry scales P eriod A u g u st 1939............................ Ju n e 30,1945........................... J u l y 1, 1946............................. J u l y 1,1947............................. J u l y 15,1948........................... J u l y 1,1949............................. J u l y 1,1950............................. J u l y 8,1951............................. J u l y 1, 1952............................. J u l y 1 ,1953............................. J u l y 1, 1954............................. J u l y 1, 1955............................. J u l y 1, 1956............................. J u l y 1 ,1 9 5 7 ............................ J u l y 1,1958............................. J u l y 1, 1 9 5 9 -......................... J u l y 10, I960®.......................... A ll C lassifi cation A ct em ployees 69.6 70.4 93.2 93.2 103.4 103.4 107.7 118.5 118.5 118.5 118.5 (4) (4) (4) (4) (4) (<) G en eral schedule 70.9 71.0 93.5 93.5 103.3 103.3 107.4 118.0 118.0 118.0 118.0 «127.0 127.0 127.0 139.8 139.8 150.5 A verage sa la r y rates C rafts, pro tective, cu sto d ial A ll C lassifi cation A ct em ployees 68.2 *6 9 .0 90.6 92.3 103.5 104.2 109.6 119.3 119.6 120.7 121.8 62.0 68.3 91.1 91.1 104.4 104.4 109.2 121.0 121.0 121.0 121.0 (4) (<) (4) (4) (4) (4) (4) (4) (4) (4) h (4) i Basic salary scales reflect only statutory changes in salaries, while average salary rates show, in addition, the effect of m erit or in-grade salary increases. Average salaries measure the effect not only of statutory changes in basic pay scales and in-grade salary increases but also the effect of changes in the pro portion of workers employed in the various pay grades. * Estimated by assuming the same distribution of employees among grades and steps w ithin grades in 1945 as in 1939. Since there was little or no increase In average rates because of in-grade increases during th is period, it was assumed that the change in basic salary scales was virtu a lly the same as in average salary rates. * Not available. 26 G eneral schedule 69.3 *6 9 .4 90.8 92.5 103.5 104.0 109.4 118.8 119.0 120.0 121.1 •1 3 0 .6 130.5 130.6 145.0 144.6 155.6 A verage salaries C rafts, pro tective, cu sto d ial A ll C lassifi cation A ct em ployees 59.5 *6 5 .5 88.8 90.3 104.4 105.3 112.2 123.8 124.7 126.1 127.3 (4) (4) (4) (4) <4) (4) 61.4 (3) 87.7 92.3 103.1 104.6 112.6 121.4 124.0 127.1 129.4 (4) (4) (4) (4) (4) (4) G eneral schedule 64.2 (*) 87.5 92.6 103.0 104.5 112.3 120.6 123.0 126.3 128.8 • 140.2 141.8 144.8 164.6 167.6 183.5 C rafts, p ro tective, cu sto d ial 58.7 (*) 90.2 90.2 104.3 105.4 112.8 125.3 127.2 129.1 129.3 (4) v) (4) (4) (4) (4 • Index discontinued because the general schedule now covers all Classifi cation Act employees. • Data have been adjusted to include those employees formerly under the CPC schedule who are now covered by the general schedule; about two-thirds of the employees were transferred to wage-board classifications and one-third to the general schedule. • Based on data including 15,676 employees in Alaska and Hawaii; cost-ofliving allowances provided these employees were excluded. The addition of these employees changed only the index of average salary rates, which would have been 0.1 point lower w ithout their inclusion. 27 T a b l e 2. P e r c e n t D is t r ib u t io n o f G Sc e n e r a l E h e d u l e m p l o ye e s b y G r a d e , Se P le c t e d e r io d s , 1 9 3 9 -6 0 Ju n e 30, 1960 A u g u st 1939 G en eral schedule grade J u l y 1, 1946 J u l y 8, 1951 J u l y 1, 1950 J u l y 1, 1954 J u l y 1, 1956 J u l y 1, 1955 J u l y 1, 1957 J u l y 1, 1958 1.......................................................... 2.......................................................... 3 .......................................................... 4........ ................................................. 5 a n d 6_______________________ 7 an d 8.............................................. 9 a n d 10............................................ 11........................................................ 12 th rou gh 15-- ............................. 16 th ro u gh 18................................. 13.1 18.1 14.7 11.5 17.2 10.4 6.8 3.8 4.4 2.5 19.3 22.8 13.6 13.9 11.6 7.6 4.0 4.7 1.8 14.5 20.6 14.8 14.8 12.3 9.2 5.1 6.9 (») 1.4 16.6 21.8 13.9 14.5 11.7 8.7 4.8 6.6 (J) 1.1 11.5 21.0 15.8 14.9 12.1 10.1 5.8 7.8 .1 1.1 10.9 20.9 15.8 14.8 11.8 10.1 6.1 8 .4 .1 0 .7 8 .9 21.4 16.4 15.2 11.9 10.2 6.3 8 .9 .1 0.5 7.2 20.8 16.8 15.7 11.5 10.6 6.9 9 .9 .1 0 .4 5 .8 19.5 16.9 15.7 11.6 11.3 7.6 11.1 .1 T o t a l..................................... N u m b e r of e m ployees................ 100.0 234,067 100.0 893,653 100.0 701,824 100.0 885,925 100.0 864,126 100.0 886,512 100.0 908,535 100.0 927,822 100.0 921,153 i In clu d es 15,676 em ployees in A la sk a an d H aw aii. * L e ss th an 0.05 percent. T a b l e 3. M in im u m a n d A v e r a g e S 0. 44.7 18.1 16.8 16.2 11.6 11.7 8.2 12.2 .1 100.0 931,105 W ithout A la sk a an d H aw aii W ith A lask a an d H a w a ii1* 0.2 4.1 16.7 16.8 16.8 11.4 11.7 8.7 13.4 .2 0 .3 4.1 16.7 16.8 16.7 11.5 11.7 8.7 13.2 .2 100.0 1 938,319 j 100.0 953,995 N o t e : B ecau se of roun din g, to tals m ay n o t e q u al 100. a l a r ie s I 1 n d e x o f , S F C e d e r a l e le c t e d P l a s s if ie d e r io d s J u l y 1., 1959 G eneral schedule grade an d C o n su m er P rice In d ex J u l y 1, 1959 , E m p l o y e e s , J u l y 10, 1960 J u l y 1, 1950 J u l y 1, 1955 J u l y 1, 1958 M in im u m sala ry r a te . 4 $1,180 1,223 A verage sa la ry ............... M in im u m sala ry r a te . 1,440 1,489 A verage sa la ry ............... M in im u m sala ry r a te . 1,620 1,683 A verage sa la ry ............... M in im u m sala ry r a te . 1,800 1,867 A verage sa la ry ............... 2,000 M in im u m sala ry r a te . 2,099 A verage sa la ry ............... M in im u m sala ry r a te . 2,300 2,414 A verage sa la ry ............... M in im u m sa la ry r a te . 2,600 2,704 A verage sa la ry ---------M in im u m sala ry r a te . 2,900 A verage sa la ry ............... 3,020 M in im u m sa la ry r a te . 3,200 3,298 A verage sa la r y ............... M in im u m sa la ry ra te . 3,500 3,620 A verage sa la ry ............... 3,800 M in im u m sa la ry rate . 3,974 A verage sa la ry ............... 4,600 M in im u m sala ry rate . 4,797 A verage sa la ry ............... 5,600 M in im u m s a la ry rate . 5,793 A verage sa la r y ............... M in im u m sa la ry r a te . 6,500 A verage sa la r y ............... 6,850 M in im u m sala ry ra te . 8,000 A verage sa la r y ............... 8,460 M in im u m sala ry ra te . (8) A verage sa la r y ............... (8) M in im u m sala ry r a te . (8) A verage sa la r y ............... (*) M in im u m sala ry r a te . (8) A verage sa la r y ............... (8) $2,200 2,356 2,450 2,639 2,650 2,866 2,875 3,103 3,100 3,405 3,450 3,780 3,825 4,154 4,200 4,553 4,600 4,923 5,000 5,279 5,400 5,734 6,400 6,759 7,600 7,931 8,800 9,150 10,000 10,577 11,200 11,232 12,200 12,288 14,000 14,000 $2,690 2,913 2,960 3,186 3,175 3,446 3,415 3,738 3,670 4,129 4,080 4,566 4,525 4,960 4,970 5,499 5,440 5,825 5,915 6,344 6,390 6,768 7,570 7,975 8,990 9,381 10,320 10,682 11,610 12,034 12,900 13,125 13,975 14,122 14,800 14,800 $2,960 3,260 3,255 3,498 3,495 3,804 3,755 4,126 4,040 4,570 4,490 5,031 4,980 5,471 5, 470 5,945 5,985 6,460 6,505 6,959 7,030 7,620 8,330 8,999 9,890 10,593 11,355 12,042 12,770 13,513 14,190 14,657 15,375 15,768 17,500 17,500 $2,960 3,271 3,255 3,507 3,495 3,814 3,755 4,133 4,040 4,561 4,490 4,996 4,980 5,448 5,470 5,961 5,985 6,438 6,505 6,938 7,030 7,567 8,330 8,924 9,890 10,524 11,355 11,968 12,770 13,465 14,190 14,551 15,375 15,670 17,500 17,500 102.9 114.7 123.9 124.9 G r a d e , a n d C o n su m e r P r ic e P ercen t increase to J u l y 10, 1960, from - - a W ith ou t W ith W ith ou t W ith A la sk a A lask a A la sk a A la sk a A u g u st an d an d an d an d 1939 H aw aii H aw aii * H aw aii H a w a ii* A u g u st 1939 b y 1 9 3 9 -6 0 J u l y 1,1959 J u l y 1, J u l y 1, J u l y 1, 1950 1955 1958 W ithout W ith A lask a A lask a an d an d H aw aii H aw aii G e n e r a l Sch ed ule Grade 1: 2: 3: 4: 6: 6: 7: g: 10: 11: 12: 13: 14: 15: 16: 17: 18: C o n su m er P rice In d ex (1947-49=100).................... 59.0 i M in im u m salaries are the salaries p aid a t the first ste p in each grade. Average salaries were obtain ed b y w eighting each sala ry step w ith in the grade b y th e n u m ber of em ployees a t th a t step . Therefore, th e y reflect th e effect of increases in b asic sala ry scales a n d of m erit increases in p a y w ith in th e grade. * E xclu d es cost-of-living allow ances p rovided em ployees in A la sk a an d H aw aii. $2,960 3,265 3,255 3,507 3,495 3,814 3,755 4,133 4,040 4,561 4,490 4,994 4,980 5,448 5,470 5,960 5,985 6,437 6,505 6,936 7,030 7,567 8,330 8,925 9,890 10,523 11,355 11,968 12,770 13,464 14,190 14,551 15,375 15,670 17,500 17,500 $3,185 3,548 3,500 3,762 3,760 4,111 4,040 4,455 4,345 4,921 4,830 5,402 5,355 5,893 5,885 6,411 6,435 6,931 6,995 7,476 7,560 8,107 8,955 9,554 10,635 11,263 12,210 12,818 13,730 14,443 15,255 15,648 16,530 16,863 18.500 18.500 126.6 $3,185 3,540 3,500 3,762 3,760 4,111 4,040 4,455 4,345 4,921 4,830 5,401 5,355 5,893 5,885 6,411 6,435 6,931 6,995 7,476 7,560 8,107 8,955 9,555 10,635 11,262 12,210 12,818 13,730 14,443 15,255 15,648 16,530 16,863 18,500 18,500 169.9 190.1 143.1 152.7 132.1 144.3 124.4 138.6 117.3 134.4 110.0 123.8 106.0 117.9 102.9 112.3 101.1 110.2 99.9 106.5 98.9 104.0 94.7 99.2 89.9 94.4 87.8 87.1 71.6 70.7 (8) (8) (8) (8) (8) (8) 44.8 50.6 42.9 42.6 41.9 43.4 40.5 43.6 40.2 44.5 40.0 42.9 40.0 41.9 40.1 40.8 39.9 40.8 39.9 41.6 40.0 41.4 39.9 41.4 39.9 42.0 38.8 40.1 37.3 36.6 36.2 39.3 35.5 37.2 32.1 32.1 18.4 21.8 18.2 18.1 18.4 19.3 18.3 19.2 18.4 19.2 18.4 18.3 18.3 18.8 18.4 16.6 18.3 19.0 18.3 17.8 18.3 19.8 18.3 19.8 18.3 20.1 18.3 20.0 18.3 20.0 18.3 19.2 18.3 19.4 25.0 25.0 7 .6 8 .8 7.5 7.5 7 .6 8.1 7.6 8 .0 7.5 7.7 7 .6 7.4 7 .5 7.7 7 .6 7 .8 7.5 7 .3 7.5 7 .4 7.5 6 .4 7.5 6 .2 7.5 6 .3 7.5 6 .4 7.5 6 .9 7.5 6 .8 7.5 6 .9 5.7 5 .7 7 .6 8.5 7.5 7.3 7.6 7.8 7 .6 7 .8 7.5 7.9 7.6 8.1 7.5 8.2 7 .6 7.5 7.5 7.7 7.5 7 .8 7.5 7.1 7.5 7.1 7.5 7.0 7.5 7.1 7.5 7.3 7.5 7.5 7.5 7.6 5.7 5.7 114.6 23.0 10.4 2 .2 1.4 7 .6 8.4 7.5 7.3 7.6 7 .8 7.6 7.8 7.5 7.9 7.6 8.1 7.5 8 .2 7 .6 7 .6 7.5 7 .7 7.5 7 .8 7.5 7.1 7.5 7.1 7 .5 7.0 7.5 7.1 7.5 7.3 7.5 7.5 7.5 7.6 5.7 5.7 * 1960 d a ta w ith o u t A lask a an d H aw aii were u sed to co m p u te all changes except from “ J u l y 1,1959, w ith A lask a a n d H a w aii.” 4 T h e m in im u m w as com p u ted b y w eightin g e q u ally the base p a y for each of the 3 grades (su bprofessional grades 1 a n d 2 an d clerical, ad m in istrativ e, an d fiscal grade 1) th a t were com bin ed in to th is general schedule grade. 8 G rades 16,17, an d 18 were created b y the C lassificatio n A ct of 1949. 28 The increased proportions of Federal employees in the higher grades continued a trend that has been evident for at least the past decade. Since 1939, the proportion in grades 9 through 15 has risen from 15 to 34 percent. This situation is directly related to the increasing complexity and diversification of governmental activities. To perform its functions effectively, the Government, like American industry, has needed larger numbers of highly trained and specialized personnel. To a more limited extent, competition for the services of workers trained in certain professional fields has also tended to inflate the number of employees in the higher grades. Increase in Average Salary Rates1 of Federal Classified Employees/ by Grade/ August 1939 to July 1960 1 A v erage salaries were obtain ed b y w eightin g each sala ry ste p w ith in the grade b y the n u m ber of em ployees a t th a t ste p . Therefore, th ey reflect th e effect of sta tu to ry changes in b a sic p a y scales a n d in-grade sala ry increases. D a ta exclude 15,676 em ployees in A la sk a an d H aw aii, ^Grades 16, 17, a n d 18, w hich w ere created b y th e C lassificatio n A c t of 1949, are o m itted . 29 A t the other end of the scale, the introduction of mechanization and improved techniques had reduced the number of employees in some of the less skilled positions,4 even as governmental activities were expanding. Between 1958 and 1960, the proportion of employees in grade 2 was reduced almost 2 percentage points, and in grade 3 almost 3 percentage points (table 2). The number of employees in these two grades, which comprise 21 percent of all classified employees, declined from 233,052 to 195,170, or 16 percent. From 1958 to 1960, increased proportions of employees in the lower steps of the various grades (mostly new workers or workers promoted into the lower steps of higher grades) caused average salary rates, affected by statutory changes and in-grade increases, to rise less than basic pay scales— 7.3 percent as compared with 7.7 percent. Near the top of the scale, in grades 11 through 14, for example, the increase in average salary rates was more than 1 percentage point under the in crease in basic pay scales. (See table 3.) Since the period from July 1958 to July 1960 was one of relative price stability, average salaries (affected by statutory changes and in-grade increases combined with the number of workers in various pay grades) of employees under the Federal Classification Act system rose more than did the Consumer Price Index, 11.5 percent as compared with 2.2 percent. panying chart. While average salaries in the lowest general schedule grade advanced 190 per cent, the corresponding increase for grade 15 (the highest grade in effect during the whole period) was about 70 percent. Only in the seven lowest pay grades did average salaries keep pace with the Consumer Price Index, which advanced 115 percent from 1939 to July 1960. Dollar increases also varied widely among pay grades, ranging from $2,325 for the lowest general schedule grade to almost $6,000 for grade 15. These marked differences in salary trends among grades have resulted from legislation that pro vided identical dollar increases for all grades, or a percentage increase combined with minimum and maximum dollar ceilings that brought about higher percent increases in the lower grades, or a scale of decreasing percent increases for the higher paid employees. This situation was particularly prevalent between 1939 and 1951. Since 1955, the existing relationship between the grades has been maintained to a much greater extent than in the earlier years by across-the-board percent increases. In 1939, the basic salary of the highest grade, equivalent to G S-15, was about four times as great as that of the equivalent of the G S-4, the grade with the highest concentration of employees in 1960. By 1960, the basic salary of the G S-15 was only about three times that of the G S -4. Long-Term Trends Between 1939 and 1960, basic pay scales of Federal employees were slightly more than doubled by legislative action; the increase in these scales averaged 112 percent. Average salary rates rose 125 percent in this period, while the index of average salaries rose 186 percent. The increase in salaries has varied widely among Federal pay grades, as indicated by the accom 4 In some agencies, automation has had such an “unfavorable outcome for employees” that more than one-third of them have been laid off, according to testimony before a congressional committee in 1959 and 1960. These hearings were conducted by the Subcommittee on Census and Government Statistics of the House of Representatives Committee on Post Office and Civil Service to determine the extent of office automation in the Federal Government and to explore the implications of these technological changes for Federal clerical workers. Material presented in these hearings concerning the impact of office automation on employees (primarily clerical) was sum marized in Office Automation in the Federal Government (in Monthly Labor Review, September 1960, pp. 933-938). F ed eral C la s s ifie d E m p lo y e e s ’ About 1 million workers are now em ployed under the Classification Act of 1949— about 43 percent of the 2.3 mil lion Federal civilian employees. Of these, slightly more than a fifth are em ployed in professional occupations. Most of the remainder are in clerical or ad ministrative work; a few are doing cus todial work. The attached tables and charts bring* up to date information on the pay of workers covered by the Classification Act. Three measures of change in pay are presented: (1) Basic pay scales, reflecting only legislative changes in pay; (2 ) the change in average salary rates, influenced both by legislative changes and by changes in the propor tion of workers receiving pay above the minimum of the grade as a result of in-grade increases; and (3) changes in average salaries, influenced not only by these factors but by changes in the pro portion of workers in the various pay grades. During the period from July 10, I960, to July 1, 1961, basic pay scales were not revised. With an expansion of ap proximately 3 percent in the total num ber of workers employed under the Clas sification Act, plus promotion of some workers to higher grades and a conse quent increase in the proportion of work ers at entrance rates within their grade, the average number of step or in-grade increases remained unchanged. Conse quently, average salary rates were the same at the end as at the beginning of the period. However, an increase in the proportion of workers employed in grades 5 and 6 and grades 11 through 15 raised average salaries approxi mately 1. 2 percent (table 1). Since the beginning of World War II, the three m e a s u r e s of pay trends have diverged substan tially. In 1939, r e l a tively few w o rk e rs w ere paid m o re than the m inim um rate for their g rad e; until S a la r y C h an ges, 1 9 6 0 — 61 1941 there was no legislative require ment that all workers with satisfactory ratings receive automatic increases in pay. As a consequence of legislation approved August 1, 1941, the proportion of workers paid above the minimum of the grade is substantially greater today than it was in 1939, and average salary rates have risen more than have basic salary scales----124.4 compared with 112.4 percent. Marked changes in grade structure in the Federal Service, sum marized in table 2 , increased average salaries much more than salary rates. Over the 22-year period, the index of average salaries rose 189 percent. The change in grade structure reflects both a substantial increase in the proportion of professional workers, growing out of the increased need for highly trained specialists, 1 and a concurrent mechani zation of routine clerical and bookkeep ing tasks which has reduced the need for workers in the lower pay grades, as well as a liberalization of classifi cation reflecting a tightening of the labor market. Increases in average salaries since 1939 have been proportionately greater in the lower pay grades than in the higher ones (table 3). Some of the leg islative increases in salaries were pro portionately smaller for the higher pay than for the lower pay grades, while others that established a uniform per centage increase in pay for the middle pay grades included a dollar minimum and maximum that resulted in lower percentage increases for the highest pay than for the lowest pay grades. From 1939 to 1961 , average salaries rose 188.6 percent in grade 1, and 138.6 per cent in grade 4, but 70.4 percent in grade 15. As a consequence of the greater increase in pay for lower * Professional workers now make up more than 22 percent of the classified employees, compared with fewer than 13 percent in 1949. 30 31 grades, the maximum pay in the clas sified service now for grade 18 is 5.8 times the minimum entrance salary (grade 1), whereas in 1939 the maxi mum salary paid in the top grade that existed at that time (grade 15) was 7. 1 times the minimum pay for grade l.2 From 1939 to 1961, all three measures of change in salaries of Federal classi fied workers lagged behind the increase in factory workers ' average weekly and hourly earnings; basic pay scales and average salary rates also rose less than did average monthly pay of railroad of fice employees, and, as shown by other Bureau reports, city public school teachers, or firefighters and police pa trolmen; basic salary scales did not keep up with the rise in the Consumer Price Index (tables 4 and 5). During the past decade, however, all three measures of Federal pay rose more than the Consumer Price Index; average salaries of Federal workers, reflecting changes in grade structure, rose some what more than did factory workers ' or railroad office employees ' pay or weekly earnings of women office clerical work ers in 1Zmajor metropolitan areas from 1951 or 1952 to 1961. Basic pay scales and average salary rates, however, con tinued to lag behind pay of these three groups and all three measures of Fed eral pay failed to keep pace with pay of city public school teachers or fire fighters and police patrolmen. u Maximum pay in grade 15 at present is 4. 7 times the minimum for grade 1. 32 Table 1 Indexes of basic salary scales, average salary rates, and average salaries * of Federal classified employees covered by the general schedule, ^ 1939 and 1945—61 (1957-59 s 100) Period August 19 3 9 ---------------------------June 30, 1945 -----------------------July 1, 1946 -------------------------July 1, 1947 -------------------------July 15, 1948 -----------------------July 1, 1949 -------------------------July 1, 1950 -------------------------July 8, 1 9 5 1 -------------------------July 1, 1952 -------------------------July 1, 1953 -------------------------July 1, 1954 -------------------------July 1, 1955 2 -----------------------July 1, 1956 -------------------------July 1, 1957 -------------------------July 1, 1958 -------------------------July 1, 1959 -------------------------July 10, 1960 5- ---------------------July 1, 1 9 6 1 s ------------------------ Basic salary scales 5 2 .3 5 2 .4 6 9 .0 6 9 .0 76 .2 76 .2 79.3 87 .1 87 .1 87 .1 87.1 93. 7 93. 7 93. 7 1 0 3 .2 1 0 3 .2 111.1 111.1 Average salary rates 4 9 .5 34 9 .5 6 4 .8 6 6 .0 73 .9 74 .2 78.1 8 4 .8 8 4 .9 85. 7 8 6 .4 9 3 .2 93.1 9 3 .2 1 0 3 .5 1 0 3.2 111.1 111.1 (1947-49 = 100) Average salaries 4 0 .4 (4) 5 5 .0 5 8 .2 6 4 .8 65. 7 70 .6 7 5 .8 7 7 .4 7 9 .4 8 1 .0 8 8 .2 8 9 .2 91 .1 1 0 3 .5 1 0 5 .4 1 1 5 .4 1 1 6.8 Basic salary scales Average salary rates 7 0 .9 7 1 .0 9 3 .5 9 3 .5 1 0 3.3 10 3.3 1 0 7 .4 1 1 8 .0 1 1 8 .0 1 1 8 .0 1 1 8 .0 1 2 7 .0 1 2 7 .0 1 2 7 .0 1 3 9 .8 1 3 9 .8 1 5 0 .5 1 5 0 .5 6 9 .3 36 9 .4 9 0 .8 9 2 .5 1 0 3 .5 1 0 4 .0 1 0 9 .4 1 1 8 .8 1 1 9 .0 1 2 0 .0 121.1 1 3 0 .6 1 3 0 .5 1 3 0 .6 1 4 5 .0 1 4 4 .6 1 5 5 .6 1 5 5 .6 Average salaries 6 4 .2 (4) 8 7 .5 9 2 .6 1 0 3 .0 1 0 4 .5 11 2.3 12 0.6 1 2 3 .0 12 6.3 1 2 8 .8 1 4 0 .2 1 4 1 .8 1 4 4 .8 16 4.6 1 6 7.6 1 8 3 .5 185. 7 Basic salary scales reflect only statutory changes in salaries. Average salary rates show, in addition, the effect of merit or in-grade salary increases. Average salaries measure the effect not only of statutory changes in basic pay scales and in-grade salary in creases, but also the effect of changes in the proportion of workers employed in the various pay grades. ^ Data for Classification Act and Crafts, Protective, and Custodial employees have been incorporated into the General Schedule indexes. Since July 1, 1955, the General Schedule has covered all Classification Act employees. At that time about one-third of the approximately 10 0,00 0 employees formerly covered by the Crafts, Protective, and Custodial schedule were transferred to the General Schedule; the remaining two-thirds were transferred to wageboard classifications along with approximately 2 ,5 0 0 workers formerly under the General Schedule. There were only minor differences among the indexes in the years prior to 1955. 3 Estimated by assuming the same distribution of employees among grades and steps within grades in 1945 as in 1939. Since there was little or no increase in average rates because of in-grade increases during this period, it was assumed that the change in basic salary scales was virtually the same as in average salary rates. 4 Not available. 3 Based on data including 15,676 employees in Alaska and Hawaii in 1960, 15, 784 employees in 1961. Costof-living allowances provided these employees, were excluded. The inclusion of these employees did not affect basic salary scales. In 1960 it changed only the index of average salary rates which would have been 0 .1 point lower without their inclusion. In 1961 average salary rates and average salaries would have been 0. 3 and 0. 2 points lower, respectively, without inclusion of employees in Alaska and Hawaii. 33 Table 2. Percent distribution of general schedule employees by grade, selected periods, 1939—61 General schedule grade August 1939 July 1, 1946 July 1, 1950 July 8, 1951 July 1, 1954 12 through 15 -----------------------------16 through 18 ------------------------------ 13. 1 18. 1 14. 7 1 1 .5 1 7 .2 1 0 .4 6 .8 3 .8 4 .4 - 2 .5 19.3 2 2 .8 1 3 .6 1 3 .9 1 1 .6 7.6 4 .0 4. 7 1 .8 14. 5 2 0 .6 14. 8 14. 8 12 .3 9. 2 5. 1 6. 9 1 .4 1 6 .6 2 1 .8 1 3 .9 1 4 .5 11. 7 8. 7 4 .8 6 .6 (M (*)_ 1 .1 11. 5 2 1 .0 1 5 .8 1 4 .9 12. 1 10. 1 5 .8 7 .8 .1 T o t a l ---------------------------------- 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 234, 067 893,653 701,824 885,92 5 864,126 1 2 3 4 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5 and 6 ---------------------------------------7 and 8 ---------------------------------------9 and 10 -------------------------------------1 1 ------------------------------------------------- Number of employees -------------------------------- - July 1, 1958 July 1, 1959 July 10 I960 2 July 1, 19612 12 through 15 -----------------------------16 through 18 ------------------------------ 0. 7 8 .9 2 1 .4 1 6 .4 1 5 .2 1 1 .9 1 0 .2 6 .3 8. 9 .1 0 .4 5 .8 19. 5 1 6 .9 15. 7 1 1 .6 11 .3 7.6 11. 1 .1 0 .4 4. 7 18. 1 16. 8 16. 2 1 1 .6 11. 7 8. 2 1 2 .2 .1 0 .3 4 .1 16. 7 1 6 .8 16. 7 1 1 .5 11. 7 8. 7 13. 2 .2 0 .2 3. 5 15. 7 16. 8 17. 1 11. 5 11. 7 9. 2 1 4 .0 .2 T o t a l ---------------------------------- 1 0 0 .0 1 0 0 .0 100. 0 1 0 0 .0 1 0 0 .0 90 8,53 5 92 1,15 3 93 1,105 July 1, 1956 1 2 3 4 --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5 and 6 ---------------------------------------7 and 8 ---------------------------------------9 and 10 -------------------------------------1 1 ------------------------------------------------- Number of employees -------------------------------- 1 Less than 0. 05 percent. 2 Beginning in 1960, data include employees in Alaska and Hawaii. 15 ,676 ; in 1961 they totaled 1 5 ,7 8 4 . NOTE: Because of rounding, totals may not equal 100. 95 3,99 5 . 988,241 In 1960 these employees numbered 34 Table 3. Minimum and average salaries1 of Federal classified employees, by grade, and Consumer Price Index, selected periods, 1939-61 General schedule grade and Consumer Price Index August 1939 July i , 1950 July 1, 1955 July l , 1958 July 10, 1960 2 July 1, 19612 $ 1 ,1 8 0 1 ,2 23 1 ,4 4 0 1 ,4 8 9 1 ,6 2 0 1 ,6 83 1 ,8 0 0 1 ,8 6 7 2 ,0 0 0 2 ,0 9 9 2 ,3 0 0 2 ,4 1 4 2 ,6 0 0 2 ,7 0 4 2 ,9 0 0 3 ,0 2 0 3 ,2 0 0 3 ,2 9 8 3 ,5 0 0 3 ,6 2 0 3 ,8 0 0 3 ,9 7 4 4 ,6 0 0 4, 797 5 ,6 0 0 5 ,7 9 3 6 ,5 0 0 6 ,8 5 0 8 ,0 0 0 8 ,4 6 0 $ 2 ,2 0 0 2 ,3 6 5 2 ,4 5 0 2 ,6 3 9 2 ,6 5 0 2 ,8 6 6 2 ,8 7 5 3 ,1 03 3 ,1 0 0 3 ,4 0 5 3 ,4 5 0 3 ,7 8 0 3 ,8 2 5 4 ,1 5 4 4, 200 4, 553 4 ,6 0 0 4 ,9 2 3 5 ,0 0 0 5 ,2 7 9 5 ,4 0 0 5 ,7 3 4 6 ,4 0 0 6 ,7 5 9 7 ,6 00 7, 931 8 ,8 0 0 9 ,1 5 0 10 ,0 0 0 1 0 ,5 7 7 11 ,2 0 0 1 1 ,232 1 2 ,2 0 0 12 ,288 1 4 ,000 1 4 ,000 $ 2 ,6 9 0 2 ,9 1 3 2 ,9 6 0 3 ,1 8 6 3 ,1 7 5 3 ,4 4 6 3 ,4 1 5 3, 738 3 ,6 7 0 4 ,1 2 9 4 ,0 8 0 4, 566 4, 525 4 ,9 6 0 4 ,9 7 0 5 ,4 9 9 5 ,4 4 0 5 ,8 2 5 5 ,9 1 5 6 ,3 4 4 6 ,3 9 0 6 ,7 6 8 7 ,5 7 0 7 ,9 75 8 ,9 9 0 9,3 81 1 0 ,3 2 0 1 0 ,682 1 1 ,6 1 0 1 2 ,0 3 4 1 2 ,9 0 0 1 3 ,125 13 ,9 7 5 1 4 ,122 1 4 ,8 0 0 1 4 ,8 0 0 $ 2 ,9 6 0 3 ,2 6 0 3 ,2 5 5 3 ,4 9 8 3 ,4 9 5 3 ,8 0 4 3 ,7 5 5 4 ,1 2 6 4 ,0 4 0 4 ,5 7 0 4 ,4 9 0 5,031 4, 980 5,471 5 ,4 7 0 5 ,9 4 5 5 ,9 8 5 6 ,4 6 0 6 ,5 0 5 6 ,9 5 9 7 ,0 3 0 7 ,6 20 8 ,3 3 0 8, 999 9, 890 10,593 11 ,3 5 5 12 ,042 12, 770 13,513 14 ,1 9 0 1 4 ,6 5 7 15 ,375 15, 768 1 7 ,5 0 0 17 ,5 0 0 $ 3 ,1 8 5 3 ,5 4 0 3 ,5 0 0 3 ,7 6 2 3, 760 4,1 11 4 ,0 4 0 4, 455 4 ,3 4 5 4, 921 4, 830 5,401 5 ,3 5 5 5, 893 5, 885 6,4 11 6 ,4 3 5 6,9 31 6 ,9 9 5 7,476 7,5 60 8 ,1 0 7 8 ,9 5 5 9 ,5 5 5 10 ,635 11 ,262 1 2 ,210 1 2 ,818 1 3 ,730 14,443 15 ,255 15 ,648 16 ,5 3 0 16,863 18 ,5 0 0 1 8 ,500 $ 3 ,1 8 5 3 ,5 2 4 3 ,5 0 0 3, 754 3, 760 4 ,1 0 2 4 ,0 4 0 4 ,4 5 6 4 ,3 4 5 4, 931 4, 830 5 ,4 5 6 5, 355 5, 890 5, 885 6 ,4 4 4 6 ,4 3 5 6 ,9 2 9 6 ,9 9 5 7 ,4 8 7 7 ,5 6 0 8,071 8 ,9 5 5 9 ,5 0 5 10 ,635 1 1 ,194 1 2 ,2 1 0 12 ,742 1 3 ,730 1 4 ,4 0 7 15 ,2 5 5 1 5 ,656 1 6 ,5 3 0 16 ,852 18 ,5 0 0 18 ,5 0 0 1 0 2 .9 114. 7 1 2 3 .9 1 2 6 .6 128.1 General schedule grade 1: 2: 3: 4: 5: 6: 7: 8: 9: 10: 11: 12: 13: 14: 15: 16: 17: 18: Minimum salary rate ■*------- — ------- ----- Average salary------------------------------------ — Minimum salary rate------- ------------- -— — Average salary------- ----------------------------— Minimum salary rate-----------------------------Average salary---------------------------------------Minimum salary rate — — ----- — - — ------Average salary --------------------------------------Minimum salary rate-----------------------------Average salary ---------- -— --------- — - — — Minimum salary rate — -------------------- --— Average salary -------- --------------- -— -------Minimum salary rate-----— ------- — -------Average salary--------------------------------------Minimum salary rate — — — — -----------Average salary — ----- -------------- ------- ------Minimum salary rate — -------------------------Average salary------------------------------ -------Minimum salary rate------------ -— ----------Average salary----- ----------------- ---------------Minimum salary rate - — — — — — — — Average salary------- — --------- — --------------Minimum salary rate — ------- — — « — — Average salary — — ----- ----------- — — ------Minimum salary rate — ---------- — Average salary ------------ — - — — - — Minimum salary rate — — -------- -------- — Average salary----- - - - ----- ----- — ------------Minimum salary rate -------- ------------ -— Average salary — ------------— — — — —— Minimum salary rate---------- ------- ------- — Average salary------------------ — ------ — ----Minimum salary rate ---------- — ------- ------Average salary------- — ---------- ----------------Minimum salary rate — - — -------------------Average salary — — — ----- — — - — - — — Consumer Price Index (1947-49=100) ------ ... (4 ) (4 ) (4) (4 ) (4 ) (4 ) 5 9 .0 Minimum salaries are the salaries paid at the first step in each grade. Average salaries were obtained by weighting each salary step within the grade by the number of employees at that step. Therefore, they reflect the effect of increases in basic salary scales and of merit increases in pay within the grade. 2 Excludes cost-of-living allowances provided employees in Alaska and Hawaii. 3 The minimum was computed by weighting equally the base pay for each of the 3 grades (subprofessional grades 1 and 2 and clerical, administrative, and fiscal grade 1) that were combined into this general schedule grade. 4 Grades 16, 17, and 18 were created by the Classification Act of 1949. 35 Table 4. Percent change in minimum and average salaries* of Federal classified employees by grade, and Consumer Price Index, selected periods, 1939—61 General schedule grade Consumer Price Index Is 2: 3: 4: 5: 6: 7: 8: 9: 10: 11: 12: 13: 14: 15: 16: 17: 18: Minimum salary rate 3— — ---------------------Average salary - - — ------------------- — ----- — Minimum salary rate — ------------ --------- ----Average salary----- — — ------ ------------- ------Minimum salary rate ------------ ------ — ------Average salary -------------------------- -------Minimum salary rate - - - — - - - - - - — — Average salary---------------- ------------- --— ----Minimum salary rate — — -------------- — - — Average salary — -----— ----- — ------- ----- — Minimum salary rate-------------------------------Average salary--------------------- -— — --------Minimum salary rate — --------— -------------Average salary — -------------- ----------------------Minimum salary rate---------------------- --------Average salary------- ------- ----- ------- ------- ----Minimum salary rate----------— ------------- — Average salary-------------------- ----------- --------Minimum salary rate---------------- ----- ----- — Average salary — ------------ ------------- ----------Minimum salary rate — — -------- -------- ----Average salary--------------------- ------------------Minimum salary rate — — ------ -— — ----- -Average salary----- ------------- -— ----- ------- — Minimum salary rate -------------- ----- — ------Average salary ---------- ----- ------------- --— ----Minimum salary rate -------------- ----------------Average salary — — - — ------------ ----- — - — Minimum salary rate-*— ------------------------ Average salary------- ---------- -------- --— ------Minimum salary rate — — - — ----- --------- — Average salary -------- --------- -— ----- — -----Minimum salary rate - - — ----- — --------------Average salary — — ----- ------- ----------- ----- — Minimum salary rate — — -------- ----- — ----Average salary ------------------ ---------------------- Consumer Price Index (1 9 4 7 -4 9 = 1 0 0 )----- -------- Percent increase to July 1, 1961, August 1939 1 6 9 .9 1 8 8 .6 143.1 152.1 132.1 143. 7 1 2 4 .4 1 3 8.6 11 7.3 1 3 4 .9 1 1 0 .0 126.1 1 0 6 .0 1 1 7 .8 1 0 2 .9 1 1 3 .4 101.1 110.1 9 9 .9 1 0 6 .9 9 8 .9 103.1 94. 7 98 .1 8 9 .9 9 3 .2 8 7 .8 8 6 .0 71.6 70 .4 <5) ( 5) ( 5) ( 5> ( 5) ( 5) 117.1 July 1, 1950 4 4 .8 4 9 .8 4 2 .9 4 2 .3 4 1 .9 43 .1 4 0 .5 4 3 .6 4 0 .2 4 4 .8 4 0 .0 44. 4 4 0 .0 4 1 .8 40 .1 4 1 .5 3 9 .9 4 0 .8 3 9 .9 4 1 .8 4 0 .0 4 0 .7 3 9 .9 4 0 .6 3 9 .9 41 .1 3 8 .8 3:9.3 3 7 .3 3 6 .3 3 6 .2 3 9 .4 3 5 .5 37.1 32.1 32.1 2 4 .5 .. July 1, 1955 from^— July 1, 1958 July 10, 1960 1 8 .4 2 1 .2 1 8 .2 1 7 .8 1 8 .4 1 9 .0 18 .3 1 9 .2 1 8 .4 1 9 .4 1 8 .4 1 9 .5 1 8 .3 1 8 .8 1 8 .4 1 7 .2 1 8 .3 1 9 .0 1 8 .3 1 8 .0 1 8 .3 1 9 .2 18 .3 1 9 .2 1 8 .3 1 9 .3 1 8 .3 1 9 .3 1 8 .3 1 9 .8 1 8 .3 1 9 .3 18 .3 1 9 .3 2 5 .0 2 5 .0 7 .6 8 .3 7 .5 7 .3 7 .6 7 .8 7 .6 8 .0 7 .5 7; 9 7 .6 8 .5 7 .5 7 .7 7 .6 8 .4 7 .5 7.3 7 .5 7 .6 7 .5 5 .9 7 .5 5 .6 7 .5 5. 7 7 .5 5 .8 7 .5 6. 7 7 .5 6 .8 7 .5 6 .9 5. 7 5. 7 (4 ) 0 .1 0 -.5 0 -.5 0 -.6 0 -.6 0 -.3 0 .1 0 -.1 0 0 11. 7 3 .4 1 .2 0 -.5 0 -.2 0 -.2 0 ( 4) 0 .2 0 1 .0 0 1 0 .5 0 1 Minimum salaries are the salaries paid at the first step in each grade. Average salaries were obtained by weighting each salary step within the grade by the number of employees at that step. Therefore, they reflect the effect of increases in basic salary scales and of merit increases in pay within the grade. 2 1961 data for the continental United States only were used for comparisons except between 1960 and 1961. 3 The minimum was computed by weighting equally the base pay for each of the 3 grades (subprofessional grades 1 and 2 and clerical, administrative, and fiscal grade l)th a t were combined into this general schedule grade. 4 Less than 0. 05 percent. 5 Grades 16, 17, and 18 were created by the Classification Act of 1949. 36 Table 5. Percent increases in Federal classified employees' salaries, in average earnings of factory production workers and office employees, and in the Consumer Price Index, 1939-61 and 1951-61 Item Federal classified employees: Basic pay scales (affected by legislation o n ly)--------------------------Average salary rates (affected by legislation and in-grade increases)-------------------------------------------------------------------Average salaries (affected by legislation, in-grade increases and changes in occupational or grade composition)------------Factory production workers: Average weekly earnings-----------------------------------------------------------Average hourly earnings (excluding overtime)------------------------Railway office employees (straight-time monthly earnings): 2 A ll railway office em ployees---------------------------------------------------Division officers, assistants, and staff assistants----------------------Chief clerks and other supervisors 8 -----------------------------------------Other clerical employees 4---------------------------------------------------------City public school teachers 5 ---------------------------------------------------------Firefighters and police patrolmen ^ -----------------------------------------------Consumer Price Index----------------------------------------------------------------------Percent change in weekly earnings of women office clerical workers, selected cities, 1952—61: 7 Atlanta------------------------------------------------------------------------------------------Boston--------------------------------------------------------------------------------------------C h ica g o ----------------------------------------------------------------------------------------Cleveland--------------------------------------------------------------------------------------Denver -----------------------------------------------------------------------------------------Los Angeles—Long Beach-------------------------------------------------------------Memphis----------------------------------------------------------------------------------------Milwaukee------------------------------------------------------------------------------------Minneapolis—St, Paul------------------------------------------------------------------New York C ity ----------------------------------------------------------------------------Philadelphia-------------------------------------------------------------------------------San Franc isco-O akland--------------------------------------------------------------- August 1939 1 to July 1961 July 1951 to July 1961 11 2.4 2 7 .6 124.4 3 1 .0 189.1 5 4 .1 2 9 5.5 2 6 5 .4 47 .1 48 .1 18 4.4 150.1 152.1 187.2 17 3.5 151.1 117.1 4 4 .4 5 0 .7 4 3 .6 3 8 .7 5 9 .0 5 6 .9 15 .5 (8) (8) (8) (8) (8) (8) (8) (8) (8) (8) (8) (8) 4 4 .1 4 5 .8 4 4 .8 5 1 .3 5 1 .9 5 1 .2 3 8 .8 4 6 .3 4 7 .0 4 5 .5 4 9 .6 4 5 .6 1 Data for factory production workers and for railway office employees were computed from July 1939. 2 Computed by the Bureau of Labor Statistics from Interstate Commerce Commission M-t300 reports. The average was computed by dividing total compensation for straight-time actually worked by the number of employees who re ceived pay during the month. 8 Includes professional and subprofessional assistants, supervisory or chief clerks (major departments), chief clerks (minor departments), assistant chief clerks, and supervising cashiers. 4 Includes clerks and clerical specialists, clerks, mechanical device operators (office), stenographers and secre taries, stenographers and typists, traveling auditors or accountants, and messengers and office boys. 5 Public school teachers in cities of 5 0 ,000 inhabitants or more. Data refer to school year ending in June. 6 Maximum salary scales in cities of 100,000 or more. 7 1952 data taken from surveys made during the second 6 months of 1951 and first 6 months of 1952. 8 Data not available. F e d e ra l C la s s ifie d E m p lo y e e s ’ S a la ry C h a n g e s, 1 9 6 2 — 6 4 T h e p r i n c i p l e of, comparability of pay with private industry for employees covered by the Federal Classification Act was established by the Federal Salary Reform Act of 1962, and the prin ciple of periodic review of salaries to maintain this relationship was implemented in the Government Employees Salary Reform Act of 1964.1 In addi tion, the 1964 legislation substantially raised the limits on salary rates in the top grades of the Classification Act by increasing salaries of Con gressmen and appointed administrative and judicial officials. The two acts together increased basic salary scales of the 1.1 million employees under the Classifica tion Act an average of about 14.5 percent, with smaller increases in the lowest pay grades and advances up to about one-third in grade 18 (table 1). Salaries for the highest grades had lagged substantially behind those for comparable work in private industry. Establishment of Comparability The most basic revision since 1923 in the salary structure under the Classification Act was passed by Congress on October 5, 1962, and signed by President John F. Kennedy on October 11. The law included, in addition to salary increases, changes in salary structures, and administrative flexibilities under the four major pay systems. 2 The act provided that determination of Federal salary schedules should be based on the principles 1 F o r a discussion o f the m ajor features o f the 1962 a n d 1964 legislation, see 1964, p p . 1155-1164. Monthly Labor Review, O c tob er Statutory pay systems are the Classification Act, Postal Field Service, Foreign Service, and Department of Medicine and Surgery in the Veterans Administration. a T h is figure does n o t in clu d e the effect o f changes in th e d istrib u tio n o f w orkers am on g steps w ith in each grade that resulted fro m p rovisions th at lengthened the tim e requ ired to reach the m id d le and to p steps o f the lo w e r grades and red u ced the tim e requ ired to advan ce a m on g the low er steps in the higher salary grades. T h e effect o f changes in the d istrib u tio n o f w orkers a m on g steps w ith in each grade from 1962 to 1963 resultin g fro m these p r o v i sions cann ot be distin gu ish ed fro m the n o rm a l op eration o f provision s for m erit increases. 4 E stim ated on the basis o f 1963 em p loy m en t. A t the tim e the b ill w as drafted, it w as estim ated that the increases w o u ld average 5.5 percen t in 1962 an d 4.1 percent in January 1964. « T h is p rovision superseded a sim ilar b u t m ore lim ited a u th ority in 1954 am en dm en ts to the Classification A c t. See Wage Chronology: Federal Classification Act Employees, 19H-60 (B L S R e p o rt N o . 199), p. 19. 37 of equal pay for substantially equal work and of comparability of Federal salary rates with those in private industry for the same levels of work. The system of classification of jobs previously in effect had followed the principle of equal pay for equal work within a pay system but there had been no method of equating pay for equal work among the various systems. The new legislation set up specific procedures for relating Federal salaries to pay in industry and provided for inter relating salary levels among the various pay systems. Two new salary schedules were provided. The first, effective October 14 or 21, 1962, depending on the pay period dates in each agency, raised an nual salaries of Classification Act employees an average of 5.6 percent.8 The second, effective the first pay period after January 1, 1964, raised sala ries for grades 1 through 15 an average of 4.1 per cent.4 Salaries for grades 16, 17, and 18— limited by those established for members of Congress-were not increased in January 1964. An additional step increase was given each employee on the payroll in the three lowest grades, thus providing these workers with greater increases than the Admin istration had proposed without permanently changing the salary schedule. This change raised average salary rates of all Classified Act em ployees three-tenths of 1 percent. In contrast with previous postwar increases, however, the legislation provided for proportionately higher total increases for the higher grades, ranging from about 5 percent for employees in grade 3 (including the previously mentioned step increase) to about 17 percent for those in grade 15. Another step towards establishing levels of pay that would be competitive with private industry authorized the President to raise rates of compen sation for any occupation or in any area where higher rates in private enterprise significantly handicap the Government’s recruitment or reten tion of well-qualified workers.5 However, the minimum salary rate established under this pro vision may not exceed the seventh salary rate prescribed by the legislation for the grade. Previ ously, the maximum pay for the occupation could 38 not exceed the maximum regular step (step 7 in most grades) for the grade. The Civil Service Commission acted quickly under this authority to set up a special pay scale for about 38,000 engineers and scientists in grades 5 through 11 and for cer tain grades in other occupations, principally for pharmacologists and medical officers. The governmentwide quota of positions that could be allocated to the top three grades (16 through 18) was increased from a total of about 2,000 to 2,400 “in addition to any professional engineering positions primarily concerned with research and development and professional posi tions in the physical and natural sciences and medicine which may be placed in such grades.” The 1962 legislation also revised the amount and timing of salary increases within a grade. Greater uniformity among grades was introduced in the percent increases by providing greater dollar increments in successively higher grades. Longevity increases were abolished, but the number of within-grade rates in each grade was revised to equal the former total of regular plus longevity rates. Within-grade pay increases were not to be automatic; advancement was to depend upon whether an employee's work was “of an acceptable level of competence as determined bv the head of the department.” Uniform waiting periods were established in all grades. The former schedule had provided annual step increases for workers in grades 1 through 10, 18-month increases in grades 11 through 17, and longevity increases at 3-year intervals in grades 1 through 15. (No longevity increases were provided in grades 16 through is.) The law also authorized additional within-grade increases (if department funds were available) in recognition of high quality work, with a limit of one such merit increase a year. Other changes included authorization to pay a supervisor of wage board employees at a salary rate in his Classification Act grade that exceeded the rate paid those he supervised, up to the maximum of his grade. Salary retention benefits, under which employees whose jobs were down graded through no fault of their own retained their old salaries for 2 years, and previously available only to employees in grades under 16, were made available to the three top grades as well. An employee brought with his position under the Classification Act from another Federal system was to retain his salary even though his position was put into a lower salaried grade. The increase in salary for an employee promoted to a higher Classification Act grade was to equal at least two (formerly one) within-grade steps in the grade from which he was promoted. The Administration's proposal for an annual report to Congress by the President on the relationship of Federal salaries to those in private industry was enacted. The President was re quired to direct an appropriate agency or agencies to submit to him annual comparisons of Federal employees' salary schedules with private enter prise rates for the same level of work,6as deter mined by the Bureau of Labor Statistics annual surveys of professional, administrative, and cler ical pay, and, after getting comments from such Government employee organizations as he con sidered appropriate, to prepare for Congress an annual report incorporating the comparisons and any recommendations he might have for revision of salary schedules or compensation policy. 1964 Salary Legislation An omnibus bill was passed by the House of Representatives on June 11,1964, providing salary increases for the Vice President, members of Con gress, Federal judges, Cabinet members, and other appointed officials, as well as for Classification Act, Postal, and other groups of employees in the executive, legislative, and judicial branches of Government. Like an earlier House bill (defeated by a rollcall vote in March), this bill was an at tempt to implement the comparability principle of the 1962 legislation. By increasing salaries of members of Congress (by $7,500 to $30,000) and of appointed administrative and judicial officials, the bill raised the limits on pay for employees in the top grades of the Classification Act. On July 2, the Senate approved a bill that differed in provisions for Classification Act employees in several respects. The Senate bill provided slightly larger increases for grades GS-9 through 12, “In order to bring this middle-management group closer to comparability . . . .” It provided an effective date of July 1 for all salarv increases, in 6 E xe cu tiv e Order 11073 delegated this responsibility to the D irector of the B ureau o f the B u d get and the C hairm an o f the C iv il Service C om m ission. 39 place of House provisions making most increases effective after passage but deferring the effective date of raising salaries above $22,000 to January 1965, when Congressmen’s salaries were to ad vance above $22,500. The Senate limited to 249 the number of hearing examiner positions to be exempt from the 2,400 positions authorized for grades GS-16, 17, and 18. Both bills allowed appointments above the mini mum salary rate at grade GS-13 or higher for applicants with exceptional qualifications, but the Senate required Civil Service approval in each instance, whereas the House would have allowed such appointments under general Civil Service authorization. The compromise bill signed by the President on August 14 incorporated all the Senate changes for Classification Act workers and provided salary increases for these workers ranging from about 2.8 percent to 22.5 percent and averaging $287 or 4.2 percent.7 From July 1961 to July 1963, average salaries increased about 3.7 percent as a result of changes in the proportion of employees in the various pay grades. Information is not yet available on the effect of further changes in the proportion of workers in various pay steps and grades from mid-1963 to mid-1964. T 1. I n d e x e s o f B a s ic S a l a r y S c a l e s , A Sa l a r y R a t e s , a n d A v e r a g e Sa l a r ie s 1 o f F C l a s s if ie d E m ployees C overed b y th e G S c h e d u l e ,2 1 9 3 9 a n d 1 9 4 5 - 6 4 3 a b le v e rag e e d er al e n e r a l [1957-59=100] Salary Changes D a te Average salary rates increased 6.1 percent from July 1962 to July 1963; this included the effects of the extra step increase to all incumbents in grades 1, 2, and 3, which raised average salary rates approximately three-tenths of a percent, as well as some changes in the distribution of workers among steps within various grades resulting from revisions in the time required to progress from one step to another and changes in average length of service within each grade. Information on changes in average salary rates since July 1963 is not yet available.8 7 E stim a ted b y assum ing the sam e d istrib u tio n o f em p loyees b y grade and step in 1964 as in 1963. T h e effect o f increases in p a y for w orkers in grades 11 throu gh 16 resultin g from a d d itio n o f p a y steps t o these grades has been om itted from the estim ates; in form ation o n the n u m b e r oPworkers affected b y these increases is n o t available. existin g to p steps o f Since the p ro p o rtio n o f w orkers in the these grades is rela tiv e ly sm all, the effect o n the overall indexes w ou ld b e , m in or. 8 Indexes o f average salary rates for 1964 were estim ated o n the assu m p tion that th e y changed b y the sam e percentage as basic salary scales. A u gu st 1939.................................................. June 30, 1945........ ......................................... J u ly 1,1946..................................................... J u ly 1,1947...................................................... J u ly 15, 1948................................................. J u ly 1, 1949............... ............... ................... J u ly 1, 1950........... ......................... —........... J u ly 8,1951..................................................... J u ly 1,1952..................................................... J u ly 1, 1953..................... .............................. J u ly 1, 1954..................................................... J u ly 1, 1955 a.................................................. J u ly 1, 1956.................................................... J u ly 1, 1957................... — _________ _____ J u ly 1, 1958......................................... ......... J u ly 1, 1959..................................................... J u ly 10, 1960 3.............................. ................. J u ly 1,1961..................................................... J u ly 1, 1962..................................................... J u ly 1, 1963,.................................................. Jan. 5,1964................. ..................... ............. J u ly 5, 1964......... ........................................... B asic salary scales i 52.3 52.4 69.0 69.0 76.2 76.2 79.3 87.1 87.1 87.1 87.1 93.7 93.7 93.7 103.2 103.2 111.1 111.1 111.1 117.3 8 122.1 8 127.2 A verage salary rates 1 49.5 4 49.5 64.8 66.0 73.9 74.2 78.1 84.8 84.9 85.7 86.4 93.2 93.1 93.2 103.5 103.2 111.1 111.1 111.0 117.8 8 122.6 8 127.7 A verage salaries 4 40.4 («) 55.0 58.2 64.8 65.7 70.6 75.8 77.4 79.4 81.0 88.2 89.2 91.1 103.5 105.4 115.4 116.8 118.1 128.1 133.4 8 142.7 * B asic salary scales reflect o n ly statu tory changes in salaries. A verage salary rates sh ow s ta tu tory changes a n d the effect o f m erit or in-grade salary increases. A verage salaries m easure th e effect n o t o n ly o f statutory changes in basic p a y scales a n d in-grade salary increases, b u t also changes in th e p ro p ortion o f w orkers in the various grades. 2 D a ta for th e G eneral Schedule a n d C rafts, P rotective, a n d C ustodial S chedule em ployees h a ve been in corporated in to a single index. Since J u ly 1, 1955, th e G eneral Schedule has cov ered a ll C lassification A c t em ployees. A t th at tim e, a bo u t one-third o f the a p p roxim ately 100,000 em ployees form erly covered b y the C rafts, P rotective, a n d C u stod ia l Schedule w ere transferred t o the G eneral S chedule; the rem aining tw o-thirds w ere transferred to wageb oard classifications, along w ith a p p roxim ately 2,500 w orkers form erly un der the General Schedule. T h ere were o n ly m in or differences am on g the indexes in the years p rior to 1955. 8 B eginn in g w ith 1960, data include em ployees in A laska and H aw aii. Inclu sion of these em ployees d id not affect basic salary scales; average salary rates an d average salaries w ere affected b y negligible am ou nts. 4 E stim ated b y assum ing the sam e d istribu tion o f em ployees a m on g grades and steps w ith in grades in 1945 as in 1939. Since there w as little or no increase in average salary rates because o f in-grade increases during this period, it was assum ed that the change in basic salary scales w as virtu a lly the sam e as in average salary rates. 8 N o t available. 8 E stim ated b y assum ing th e sam e d istribu tion o f em ployees am on g grades and steps w ith in grades in 1964 as in 1963. 40 T ab le 2. P ercen t G I n creases rou ps Sa in an d Item in l a r ie s th e C A u gu st 1939 to J u ly 1964 F ederal classified em p loy ees: 7 B asic salary scales 2-------------------------------A verage salary rates 2 2_________________ A verage salaries 23---------------------------------- 143.2 158.0 253.2 F a cto ry p rod u c tion w o r k e r s :4 A verage w eek ly earnings_______________ A vera g e h o u rly earnings (exclu din g o v e r tim e )_________________________ ______ __ R a ilw a y office em p loyees (straight-tim e m o n th ly e a r n in g s ):3 A ll railw ay office em p loy ees____________ D iv is ion officers, assistants, an d staff assistants______________________________ C hief clerks an d other supervisors •____ O ther clerical em ployees 7.......................... of F e d er al on su m er J u ly 1954 t o J u ly 1964 P C r ic e J u ly 1962 to J u ly 1964 46.0 47.8 76.2 14.5 15.0 20.8 338.3 48.4 7.4 296.7 41.0 6.1 205.4 44.7 2.3 157.3 163.1 209.4 46.0 41.3 40.2 1.0 1.2 2 .0 E m ployees and O th 1 9 3 9 -6 4 , 1 9 5 4 -6 4 , a n d l a s s if ie d I n d e x , Selected O 1 9 6 2 -6 4 er Item O ffice clerical w orkers, selected cities (straight-tim e w ee k ly ea rn in g s): 8 A t l a n t a _________________________ _______ B o s t o n _________________________ _______ _ C h i c a g o ------------------------- --------------------C le v e lan d _______________________ _______ D e n v e r_____________ __________________ L os A n g e le s -L o n g B e a c h _______________ M e m p h is ._______________________________ M ilw a u k e e _____ _________________________ M in n e a p o lis-S t. P a u l____ ______________ N e w Y o r k C it y _________________________ P h iladelph ia____________________________ San F ra n cis co -O a k la n d _______________ C ity p u b lic s ch ool teachers 77_______________ Firefighters an d p o lice patrolm en 72_______ C onsum er P rice In d e x 73........................... ......... A u gu st 1939 to J u ly 1964 (9) (9) (9) ( 9) (9) (9) (9) (9) (9) (9) (9) (9) 195.1 184.4 124.9 c c u p a t io n a l J u ly 1954 J u ly 1962 to J u ly to J u ly 1964 1964 47.3 47.0 39.8 73 39.0 48.8 48.0 42.9 43.0 41.2 46.2 46.1 45.2 7.1 5.4 4.8 5.2 7.7 6.0 5.3 6.2 5.4 6.6 5.8 6.4 49.4 50.6 15.2 7.1 8.5 2.6 1 C hanges in th e earnings o f F ederal em ployees are based o n the salary schedule effective J u ly 5, 1964. 2 See footn ote 1, tab le 1. 3 E stim a ted b y assum ing th e sam e d istrib u tion o f em ployees am on g grades an d steps w ith in grades in 1964 as in 1963. 4 C hanges in th e earnings of fa cto ry p ro d u ctio n w orkers w ere co m p u te d to June 1964. * C hanges in th e earnings o f ra ilw a y office em ployees were c o m p u te d to D ecem b er 1963 b y th e B u reau o f L a b o r Statistics from Interstate C om m erce C om m ission M-300 reports. A verages w ere co m p u te d b y d ivid in g total com p en sation for straigh t-tim e a ctu a lly w o rk e d b y th e n u m b e r o f em p loyees w h o received p a y durin g th e m on th . « In clu des professional and subprofessional assistants, su p ervisory or ch ief clerks (m ajor dep a rtm en ts), ch ief clerks (m in or departm en ts), assistant ch ief clerks, an d supervising cashiers. 7 Inclu des clerks an d clerical specialists, clerks, m echanical-device operators (office), stenographers an d secretaries, stenographers and typ ists, traveling auditors or a ccou ntan ts, and m essengers and o fficeb oys. 8 D a ta for 1954 refer to w om en and w ere tak en from su rv eys m ad e durin g th e secon d h a lf o f 1953 a n d th e first h alf o f 1954; data for 1964 refer to b o th m en and w om en an d w ere tak en fro m surveys m ad e during th e secon d half o f 1963 and the first half o f 1964. 8 Not available. Increase from 1955 to 1964. 11 D a ta refer to p u b lic sch ool teachers in cities o f 100,000 in h abitan ts or m ore in 1963 an d 50,000 in habitants or m ore in earlier years, an d to s ch ool years ending in June o f 1939,1953, and 1963. 12 M a x im u m salary scales in cities o f 100,000 in h abitan ts or m ore. 73 Changes in the con sum er price in d ex were c o m p u te d to June 1964. From 1939 to July 1964, legislation raised basic salary scales of Classification Act employees by about 143 percent. Average salary rates increased 158 percent, while estimated average salaries rose 253 percent. Both the 1962 and 1964 acts were designed to provide comparability of pay for Government employees with private industry and, hence, pro vided for substantial “catchups” in pay for workers in the higher Classification Act grades. Conse quently, from 1962 to 1964, all three measures of increases in Federal pay rose faster than the Con sumer Price Index (CPI) or the earnings of other groups of workers shown in table 2. From 1954 to 1964, basic salary scales and average salary rates rose by about the same relative amounts as earnings of other groups and more than the CPI, while average salaries rose more than earnings of other workers. Despite the larger increases in recent years, both basic salary scales and average salary rates have risen less since 1939 than pay of other workers. Average salaries have risen more than the straight-time monthly earnings of all railway office employees,9but less than the average hourly or weekly earnings of factory production workers, both of which are also affected by changes in composition of the labor force. • T h e inform ation on railw ay em ployees is in clu d ed since it is the o n ly series show ing trends in earnings o f a substantial group o f office w orkers prior to 1952. 10T h is was the increase in salaries o f em ployees on the rolls at the tim e the legislation becam e effective; it in clu ded the effects o f b o th the change in p a y scales and an additional increase equ ivalen t to one step w ith in the p a y grade to those on the rolls at that tim e in grades 1, 2, and 3. T h e change in average salaries in each grade also in clu d ed the effect o f changes in the distribution o f w orkers am on g p a y steps resulting from actual changes in average length o f service in the grade and changes m ade b y the 1962 legislation in the length o f tim e required to progress am on g grade steps. Increases in average rates that w o u ld becom e effective for em ployees n o t on the rolls at the tim e the 1962 legislation w en t in to effect were 3 to 3.5 percent in the three low est grades. Increase Variation Among Grades In contrast to previous postwar increases, the 1962 and 1964 legislation provided for proportion ately larger salary increases for the higher grades. Increases ranged from about 5.2 percent in the average scales in grade 3 to about 17 percent in grade 1510 in the 1962 legislation and from 2.8 percent in grade 2 to 22.5 percent in grade 18 in 1964 (tables 3 and 6). Combining the effect of the two acts, increases in average salaries ranged from about 7.6 percent in grade 2 to 33.8 percent in grade 17. Early in 1962, the Civil Service Commission and the Bureau of the Budget found that rates 41 in the lowest levels of the Classified Service were equal to or higher than those for comparable work in private industry, as reflected in a Bureau of Labor Statistics survey for 1961.11 In higher grades, the differential in favor of private industry ranged from 14 percent in grade 7 to 32 percent in grade 15. The larger increases provided the higher grades also were designed to give greater recognition to differences in responsibility and greater incentive to prepare for higher responsibilities; previous postwar increases had either been uniform in percentage terms to all grades or, frequently, greater proportionately in the lower grades, thus narrowing the spread between grades. The ratio of the minimum salary in the highest and lowest grade had narrowed from 8.8 to 1 in 19391213to 5.8 to 1 prior to passage of the 1962 legislation. T ab le 3. M in im u m an d A ve rag e Sa l a r ie s I G eneral schedule grade a n d C on su m er P rice In d ex A u gu st 1939 1 11 See Summary Analysis of President’s Proposal for Reform of Federal Statu tory Salary Systems (U .S . H ouse o f R epresentatives, C om m ittee on P ost Office and C iv il Service, 87th C ong., 2d sess., 1962, C om m ittee P rin t), p p . 9-10. 13 In 1939, the equ ivalen t o f GS-15 was the top grade. Grades 16, 17, and 18 were created b y the C lassification A c t o f 1949. T h e salary for G rade 18 has been used in com parisons for years other than 1939. T h e 1939 ratio is based on the m in im u m salary in the subprofessional schedule w h ich was co m b in e d w ith the professional and the clerical, a d m in istrative, an d fiscal schedules in to one general schedule in 1949. T h e ratio based on w h at was then the equivalent o f the present m in im u m rate (G S -1 ) in the general schedule was 7.1 to 1. M a xim u m p a y in grade 15 was five tim es the m in im u m for grade 1 in b o th 1958 and 1960. T h e ratio rose to 5.5 to 1 in O ctober 1962, 5.8 to 1 in January 1964, and 6.4 to 1 under the schedule that becam e effective in J u ly 1964. Federal C , Selected D of n d e x The October 1962 schedule raised the ratio to 6.2 to 1, but it dropped slightly to 6.1 to 1 when the January 1964 schedule did not change salaries of grades 16, 17, or 18. When the 1964 legislation became effective, the ratio rose to 7.2 to 1. Although the 1962 and 1964 legislation increased basic salary rates of Classified workers in all grades J u ly 1, 1950 J u ly 1, 1958 E m plo , 1 9 3 9 -6 4 l a s s if ie d ate s J u ly 10, 1960 yees J u ly 1, 1961 , b y G J u ly 1, 1962 ra d e , an d J u ly 1, 1963 C on su m er Jan. 5, 19641 P r ic e Ju ly 5, 19641 General schedule grade: 1: M in im u m salary ra te ............................. A verage salary....... ................................. 2: M in im u m salary rate............................. A verage salary..................... .................... 3: M in im u m salary r a t e ............................ A verage salary............... ........................... 4: M in im u m salary rate............................. A verage salary......... ................................. 5: M in im u m salary r a t e .—.................— A verage salary........................................... 6: M in im u m salary rate.............................. A verage salary....... ................................... 7: M in im u m salary rate............................. A verage salary....... ................................... 8: M in im u m salary rate............................. A verage salary....... ................... — .......... 9: M in im u m salary ra te ............................. A verage salary......... ................................. 10: M in im u m salary ra te............................. A verage salary........................... ............... 11: M in im u m salary ra te ............................. A verage salary......... ................. ................ 12: M in im u m salary r a t e ........................... A verage s alary................... ....................... 13: M in im u m salary ra te ........... ................. A verage s alary........... ........... - ................. 14: M in im u m salary ra te ............................. A verage s alary........... ............................... 15: M in im u m salary r a te ..... ....................... A verage salary........................................... 16: M in im u m salary ra te ....... ..................... A verage s a la r y ............................. - ......... 17: M in im u m salary ra te ....... ..................... A verage s alary........................................... 18: M in im u m salary r a t e ............................ A verage salary------------------------------------ *$1,180 1,223 1,440 1,489 1,620 1,683 1,800 1,867 2,000 2,099 2,300 2,414 2,600 2,704 2,900 3,020 3,200 3,298 3,600 3,620 3,800 3,974 4,600 4,797 5,600 5,793 6,500 6,850 8,000 8,460 (») (*) (») (*) (») (') $2,200 2,356 2,450 2,639 2,650 2,866 2,875 3,103 3,100 3,405 3,450 3,780 3,825 4,154 4,200 4,553 4,600 4,923 5,000 5,279 5,400 5,734 6,400 6,759 7,800 7,931 8*800 9,150 10,000 10,577 11,200 11,232 12,200 12,288 14,000 14,000 $2,960 3,260 3,255 3,498 3,495 3,804 3,755 4,126 4,040 4,570 4,490 5,031 4,980 5,471 5,470 6,945 5,985 6,460 6,605 6,959 7,030 7,620 8,330 8,999 9,890 10,593 11,355 12,042 12,770 13,513 14,190 14,657 15,375 15,768 17,500 17,500 $3,185 3,540 3,500 3,762 3,760 4,111 4,040 4,455 4,345 4,921 4,830 5,401 5,355 5,893 5,885 6,411 6,435 6,931 6,995 7,476 7,560 8,107 8,955 9,555 10,635 11,262 12,210 12,818 13,730 14,443 15,256 15,648 16,530 16,863 18,500 18,500 $3,185 3,524 3,500 3,754 3,760 4,102 4,040 4,456 4,345 4,931 4,830 5,456 5,355 5,890 5,885 6,444 6,435 6,929 6,995 7,487 7,560 8,071 8,955 9,505 10,635 11,194 12,210 12,742 13,730 14,407 15,255 15,656 16,530 16,852 18,500 18,500 $3,185 3,474 3,500 3,712 3,760 4,079 4,040 4,444 4,345 4,932 4,830 5,490 5,355 5,884 5,885 6,430 6,435 6,945 6,995 7,492 7,560 8,133 8,955 9,451 10,635 11,132 12,210 12,679 13,730 14,356 15,255 15,662 16,530 16,846 18,500 18,500 $3,245 3,643 3,560 3,846 3,820 4,241 4,110 4,675 4,565 5,158 5,035 5,732 5,540 6,153 6,090 6,797 6,675 7,370 7,290 8,089 8,045 8,712 9,475 10,155 11,150 11,935 12,845 13,740 14,565 15,679 16,000 17,103 18,000 18,732 20,000 20,000 $3,305 3,652 3,620 3,884 3,880 4,291 4,215 4,779 4,690 5,269 5,235 5,950 5,795 6,357 6,390 7,112 7,030 7,702 7,690 8,518 8,410 9,017 9,980 10,680 11,725 12,541 13,615 14,545 15,665 16,835 16,000 17,093 18,000 18,729 20,000 20,000 $3,385 » 3,765 3,680 *3,994 4,005 * 4,513 4,480 5,084 5,000 5,598 5,605 6,261 6,050 6,626 6,630 7,386 7,220 7,935 7,900 8,776 8,650 4 9,289 10,250 11,003 12,075 4 12,965 14,170 4 15,182 16,460 4 17,755 18,935 *20,367 21,445 22,539 24,500 24,500 C onsum er P rice In d ex (1957-59=100).............. 48.1 83.9 101.0 103.2 104.4 105.5 107.1 107.6 •108.2 i M in im u m salaries are th e salaries p a id at the first step in each grade. A verage salaries w ere ob ta in ed b y w eightin g each salary step w ith in the grade b y th e n u m b er o f em ployees at that step. Therefore, th e y reflect the effect o f increases in basic salary scales an d o f m erit increases in p a y w ith in the grade. A vera g e salaries for 1964 were estim ated on the basis o f 1963 em ploym en t data, and hen ce d o n o t reflect a n y changes that occu rred from 1963 to 1964 in th e d istrib u tion o f em p loyees am on g and w ithin grades. * T h e m in im u m was co m p u te d b y w eightin g e q u a lly the base p a y for each o f the three grades (subprofessional grades 1 and 2 an d clerical, adm inistra tiv e, and fiscal grade 1) that were co m b in e d in to this G eneral S chedule grade. * A verage salaries for J u ly 1964 d o n ot reflect the fact that em ployees paid a bov e the m axim u m rate (a b ov e step 10) o f grades 1 ,2 , an d 3 as a result of th e extra step increases received in O ctob er 1962 received sm aller increases in Ju ly 1964 than other em p loyees in these grades since th e y reverted to the rates for step 10 o f these grades u n der the Ju ly 1964 schedule. Increases o f affected em ployees w ere thus $105 ($125 in grade 3) low er than th e y w o u ld have been if a salary rate for the e q u iva len t o f step 11 had been m ain tained. T h is change affected a b o u t 6 percent o f the em p loyees in grades 2 and 3 and a bou t 12 percent o f those in grade 1, b u t o n ly a bo u t 1 percen t o f all General S chedule em ployees. 4 E stim ates o f J uly 1964 average salaries do n o t reflect the effects o f th e p a y steps that were ad d ed to the salary schedule for grades 11 throu gh 16 b y the 1964 legislation. A verage salaries for these grades m a y be revised substan tia lly w hen later data are available. * G rades 16,17. an d 18 were created b y the Classification A c t o f 1949. •In d ex for June 1964. 42 relatively more than the CPI rose, increases in Increase in Average Salary Rates 1of Federal Classified Employees, by Grade,2August 1939 to July 1964 entrance salaries in grades above GS-11 since 1939 and in average salaries above GS-12 still lagged behind the overall increase in the CPI. Since 1939, increases in entrance rates amounted to 187 percent in grade 1 and 106 percent in grade 15. Average salaries in grade 1 rose 208 percent from 1939 to July 1964, compared with 110 percent in grade 15. (See chart.) Other features of the legislation were intended to provide uniform ranges in percentage terms be tween minimum and maximum salaries among grades. The size of the step increases within the higher grades was widened, and in 1964 pay steps were added in grades 11 through 16, bringing the number of steps to 10 in grades 1 through 15 and to 9 in grade 16 (table 4). In July I960, the pay range within a grade as a percent of the minimum salary varied from 6.3 percent in GS-17 to 22.8 percent in GS-5. The spread changed to 11.1 percent in GS-17 and 30.7 percent in GS-5 by January 1964. As a result of the most recent legislation, the range varied from 14.0 percent in grade 17 to 31.3 percent in grade 13. Except for grade 17 (and grade 18 for which there is a single rate), the 1964 legislation resulted in practically uniform percentage ranges in all grades—from 29.7 percent in grade 5 to 31.3 percent in grade 13. Employment Shifts Since 1939, part of the increase in average salaries has resulted from changes in the distribu tion of Federal employment among grades. As indicated in table 5, page 44, there has been a substantial decrease in the proportion employed in the lower grades and a growth in the higher grades. In 1939, 31 percent of all Classification Act employees were in grades 1 and 2; 57 percent were in the first four grades. By July 1963, only 3 percent were in grades 1 and 2 and 33 percent in grades 1 through 4. Over the same period, the proportion of employees in grade 12 or above rose from about 4 to 17 percent. The median grade rose from GS-4 in 1939, GS-5 in 1954, and GS-6 in 1961, to GS-7 in 1963. 1 A verage salaries w ere o b ta in e d b y w eightin g each salary step w ith in th e grade b y the n u m ber o f em ployees at that step (1964 average salary rates w ere estim ated on the basis o f 1963 em p loym en t data). Therefore, th e y reflect the effect o f statu tory changes in basic p a y scales and ingrade salary increases. 2 Grades 16, 17, and 18, w h ich w ere created b y the Classification A c t o f 1949, are o m itted . These pronounced changes in the employment pattern reflect a number of factors, including the effect of mechanization of many accounting and office processes and the increases and changes in demands for Government services which have attended the growth in population and complexity of the economy. The growth in demands for Government services and the resulting new legis lation have not only increased the number of 48 T a b le 4. General schedule grade N um ber o f W ithin-Grade Increases and S alary P an ges as Percent o f M inim um S a la rie s, S e le c te d Periods, 1949-64 Number o f increases 1 Oct. 1949, July 1951 1 ........................... 2 ----------------- 3 -----------------4 -----------------5 ----------------6 ----------------7 ----------------8 ----------------9 ----------------1 0 ................. 11 ------------1 2 ---------------1 3 ---------------1 4 ---------------1 5 ---------------1 6 ---------------1 7 — ............. 1 8 ---------------- 9 9 9 9 9 9 9 9 9 9 5 5 5 5 4 4 4 Range as percent of minimum salary 2 Oct. 1949 1955 to Jan. 1964 9 9 9 9 9 9 9 9 9 9 8 8 8 8 7 4 34 July 1964 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 Exclud ing 2 1 .8 19.6 18. 1 16. 7 24. 2 21. 7 19.6 17.9 16.3 15.0 18.5 15.6 13. 2 11.4 1 0 .0 8 7.1 4 6 .6 July 1951 Includ ing 32. 7 29.4 27. 2 25.0 36.3 32.6 29.4 26.8 24.5 22.5 - Mar. 1955 Longevity Exclud Includ ing ing 19. 2 17. 5 16.3 15. 1 2 2 .0 19. 8 17.8 16.2 14.8 13.6 16. 8 14. 2 1 2 .0 10.4 9.3 6. 7 Exclud ing Includ ing 19.0 17.2 16.1 14. 9 22. 1 19.9 17.9 16.3 14.9 13. 7 16,8 14.2 28.4 25. 8 24.1 22.4 33. 1 29.8 26.9 24.4 22.3 20.5 26.9 22. 7 19.1 16. 7 14.9 - 28.8 26.2 24.4 22. 7 33.0 29.6 26.8 24.4 2 2 .2 20.5 - 6 .2 - 1 2 .0 10.4 9.3 6. 7 36 . 2 - - Range as percent of minimum salary2 Jan. 1958 Exclud ing July 1960 Longevity Includ Excluding ing - --------------------------------------3 --------------------4 --------------------5 --------------------6 --------- ----------7 ......................... 8 --------------------9 --------------------1 0 ------- ----------1 1 ------------------1 2 ------------------1 3 ------------------1 4 ------------------- 19.3 17.5 16. 3 15. 2 22.3 1 0 .6 1 6 .9 1 5 ---------------------------- 9 .4 1 5 .0 1 6 .................................. 1 7 ---------------------------- 6 .8 1 8 ---------------------------- " 1 2 2 0 .0 18. 1 16.5 15.0 13. 8 17. 1 14.4 12. 1 6.2 28. 9 26.3 24.5 22. 8 33. 4 30. 1 27. 1 24. 7 2 2 .6 2 0 .8 27.3 23.0 19.4 - 19.8 18.0 16.8 15. 6 22. 8 20.5 18.5 16.8 15.4 14.2 17.2 14.5 Includ ing Oct. 1962 Jan. 1964 July 1964 1 2 .2 29. 7 27.0 25. 1 23.4 34.2 30. 7 27. 7 25. 2 23. 1 21. 2 27. 5 23. 2 19.6 29. 1 26.5 26.4 30. 7 31. 5 30.4 30.1 30.3 30.3 30.2 26.4 26.6 26.2 28.6 26. 1 26.3 29. 9 30. 7 30.1 30.3 29.6 29.4 29. 8 26.6 26. 5 26.3 30.6 30.6 30.3 30.1 29. 7 30.2 29.8 29.9 30.5 30.8 30. 7 31. 2 31.3 1 0 .6 1 7 .0 2 6 .5 2 6 .4 31. 1 9 .5 1 5 .1 2 3 .1 2 3 .0 31.2 12.5 12.5 27. 7 11.1 11.1 14.0 6.8 6.3 - “ 1 In cluding lon gevity in creases. 2 Longevity steps w ere provided for em p loy ees in grades 1—10 until S ep tem b er 1954 when they w ere exten ded to em ploy ees in grades 11—15. Longevity steps, as such, no lon ger ex ist; they were incorporated into the regular pay schedule in O ctober 1962. 3 In M arch 1955, 3 w ith in -grade in creases above the m in im um salary were provided for grade 17, m ak in g th e ran ge 4 . 6 percen t o f the m in im um sala ry . The 6 . 2 percent ran ge b e ca m e e ffe c tiv e in July 1956 when 1 step w as ad ded to grade 17. 44 Table 5. General schedule grade ----------------------------------------- ------------3 ---------------------------4 --------- -----------------5 and 6 -----------------7 and 8 ----------------9 and 1 0 ---------------1 1 ................. .............. 12 and 13 -------------14 and 15 - ............... 16 through 1 8 --------1 2 Percent Distribution of General Schedule Employees by Grade, Selected Periods, 1939-631 Aug. 1939 July 1, 1946 13.1 18.1 14. 7 11.5 17.2 10.4 2.5 19.3 6 .8 3.8 3. 9 .5 - July 1, 1950 July 8, 1951 1 .8 14.5 1.4 16.6 1. 1 11.5 2 2 .8 2 0 .6 2 1 .8 2 1 .0 13.6 13.9 14.8 14.8 12.3 9.2 5.1 5.8 13.9 14.5 11. 7 8. 7 4. 8 5.4 15.8 14.9 1 .1 1 .2 (2) (2 ) 1 1 .6 7.6 4 .0 4 .0 .7 - July 1, 1954 1 2 .1 1 0 .1 5.8 6.3 1.5 .1 Total — -------- 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 Number of employees — ------- 234,067 893,653 701,824 885,925 864,126 July 1, 1961 July 1, 1962 0 .2 0 .2 0 .1 3.5 15. 7 16.8 17.1 11.5 11. 7 9.2 3 .4 15. 1 16.6 17.0 11. 1 12. 1 9. 1 2. 7 13. 7 16.3 17.1 1 1 .1 1 1 .8 2.9 3.3 .1 1 0 .6 2 .8 .2 .2 .2 Total ----------- 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 Number of employees ----------- 921,153 953,995 988, 241 1,039,224 1,083,633 ........... ........................ ................. - .............. 3 .................................. 4 ---------------------------5 and 6 — — ---- —— 7 and 8 ------------------9 and 1 0 ---------------1 1 ............................— 12 and 13 -------------14 and 1 5 -------------16 through 1 8 --------- 1 2 1 2 July 1, 1958 July 10. I9601 0.4 5. 8 19.5 16.9 15. 7 0.3 4.1 16. 7 16.8 16. 7 11. 5 11. 7 8. 7 1 1 .6 11.3 7.6 8.9 2 .2 Beginning in 1960, data include employees in Alaska and Hawaii. Less than 0. 05 percent. NOTE: Because of rounding, totals may not equal 100. July 1, 1963 1 1 .1 12.5 9. 8 12. 7 3.8 .3 45 T a b l e 6. P e r c e n t I n c r e a s e i n M i n i m u m a n d A v e r a g e {Sa l a r i e s 1 o f F e d e r a l C l a s s i f i e d E m p l o y e e s , b y G r a d e , AN D IN TH E C O N S U M E R P R IC E I N D E X , SE LE C T ED D A T E S TO J U L Y 5 , 1964 Percent increase to July 5,1964 from— General schedule grade and Consumer Price Index Aug. 1,1939 July 1,1950 July 1,1958 July 10,1960 July 1,1961 July 1,1962 July 1,1963 Jan. 5,1964 1 General schedule grade: 1: M inim um salary rate_____ ______________ ______ Average salary________________ _____ ___________ 2: M inim um salary rate___________________________ Average salary_________________ ____ ___________ 3: M inim um salary rate............... - _ .______ ________ Average salary_____ ____________________________ 4: M inim um salary rate----- ---------------------- -----------Average salary----------- --------------------------------------5: M inim um salary rate___________________________ Average salary----------- ---------- ---------------------- ------6: Minimum salary rate----------------- -----------------------Average salary______________________ _____ _____ 7: M inim um salary rate___________________________ Average salary___________ ______________________ 8: M inim um salary rate___________________________ Average salary-------------- ---------- --------------------------9: M inim um salary rate____ ______________________ Average salary----------- ------- --------------------------------10: M inim um salary rate-------------- ---------- ---------------Average salary__________________________________ 11: M inim um salary rate___________________________ Average salary-------- ------------------------------ ---------12: M inim um salary rate__________________________ Average salary__________________ ______ - ............ 13: M inim um salary rate___________________________ Average salary_____________________ _____ ______14: M inim um salary rate__________ _________ - ........ . Average salary__________________________________ 15: M inim um salary rate___________________________ Average salary__________________________________ 16: M inim um salary rate------------------------------------Average salary_______________________ __________ 17: M inim um salary r a t e -------- ----------------------------Average salary____________ _____ __________ ____ 18: M inim um salary rate_________________ ______ Average salary_________________________________ 186.9 2 207.8 155.6 2 168.2 147.2 2 168.2 148.9 172.3 150.0 166.7 139.3 159.4 132.7 145.0 128.6 144.6 125.6 140.6 125.7 142.4 127.6 »133.7 122.8 » 129.4 115.6 3 123.8 118.0 3121.6 105.8 3 109.9 (4) (4) (4) (4) (4) (4) 53.9 2 59.8 50.2 2 51.3 51.1 2 57.5 55.8 63.8 61.3 64.4 59.6 65.6 58.2 59.5 57.9 62.2 57.0 61.2 58.0 66.2 60.2 »62.0 60.2 3 62.8 58.9 *63.5 61.0 3 65.9 64.6 3 67.9 69.1 3 81.3 75.8 83.4 75.0 75.0 14.4 2 15.5 13.1 2 14.2 14.6 2 18.6 19.3 23.2 23.8 22.5 22.6 24.4 21.5 21.1 21.2 24.2 20.6 22.8 21.4 26.1 23.0 3 21.9 23.0 3 22.3 22.1 3 22.4 24.8 3 26.1 28.9 *31.4 33.4 3 39.0 39.5 42.9 40.0 40.0 6.3 2 6.4 5.1 2 6.2 6.5 »9 .8 10.9 14.1 15.1 13.8 14.0 15.9 13.0 12.4 12.7 15.2 12.2 14.5 12.9 17.4 14.4 8 14.6 14.5 3 15.2 13.5 «15.1 16.1 3 18.4 19.9 3 22.9 24.1 3 30.2 29.7 33.7 32.4 32.4 6.3 2 6.8 5.1 2 6.4 6.5 2 10.0 10.9 14.1 15.1 13.5 14.0 14.8 13.0 12.5 12.7 14.6 12.2 14.5 12.9 17.2 14.4 3 15.1 14.5 8 15.8 13.5 3 15.8 16.1 3 19.1 19.9 3 23.2 24.1 3 30.1 29.7 33.7 32.4 32.4 6.3 2 8.4 5.1 2 7.6 6.5 2 10.6 10.9 14.4 15.1 13.5 14.0 14.0 13.0 12.6 12.7 14.9 12.2 14.3 12.9 17.1 14.4 3 14.2 14.5 3 16.4 13.5 3 16.5 16.1 3 19.7 19.9 3 23.7 24.1 3 30.0 29.7 33.8 32.4 32.4 Consumer Price Index (1957-59=100)----------------------------- 124.9 29.0 7.1 4.8 3.6 2.6 1 See footnote 1, table 3. 2 See footnote 3, table 3. 3 See footnote 4, table 3. Government employees,13but have created a de mand for new types of workers.14 From 1951 to 1961, the Federal Government experienced a 32-percent decline in subprofessional mathematical and statistical employees, a 100percent increase in mathematicians, and a 13percent increase in statisticians. The growth of scientific activities of the Government has resulted in greatly increased needs for scientists and en gineers and related professional people.15 For example, the number of scientists and engineers working on NASA programs grew from 8,400 (or less than 1 percent of the estimated 1.2 million in the country) in 1960 to 43,000 (or about 3 percent of the total) by 1963. New legislation (e.g., regulating collective bargaining) increased the employment of hearing examiners, lawyers, etc. New laws and a growing population have also created a need for more social security claims examiners, food and drug inspectors, etc. This has been reflected in an increase in employement in legal and kindred 4.3 2 3.3 3.4 23.8 1 2.4 23 .I 1.7 22.8 4.8 2 6.4 9.0 8.7 9.5 8.5 9.3 9.2 9.2 7.7 8.9 8.7 8.2 7.7 8.4 8.5 7.5 3 6.6 8.2 3 8.4 8.3 »8.6 10.3 310.5 13.0 3 13.2 18.3 3 19.1 19.1 20.3 22.5 22.5 3.2 *5.2 6.3 6.4 6.6 6.2 5.2 5.2 4.4 4.2 3.8 3.9 2.7 3.0 2.7 3.0 2.9 3 3.0 2.7 3 3.0 3.0 3 3.4 4.1 >4.4 5.1 « 5.5 18.3 >19.2 19.1 20.3 22.5 22.5 1.0 8.6 4 Grades 16,17, and 18 were created b y the Classification A ct of 1949. 5 Increase to June 1964. occupations. Increases occurred also in the num ber of highway engineers, specialists in business and industry, and professionals in the field of education. The number of medical officers rose as Congress provided for increased medical research and public health services and as war veterans sought an increasing amount of Government medi cal assistance. Government has shared with private industry the trend toward increasing employment of whitecollar workers and a decrease in the relative importance of blue-collar employees. Clerical, administrative, and professional employees repre sented 26 percent of Federal civilian employment in 1939, 42 percent in 1958, and 46 percent in 1963. *> From 1939 to 1963, Federal civilian employment, excluding employees of the Central Intelligence and National Security Agencies for which data are not available, increased to 4 from 3 percent of total nonagricultural employ ment. i* See “ Government and Manpower Requirements,” M o n th ly L a b or R ev ie w , April 1964, pp. 407-413. is For an analysis of white-collar occupational groups, see O ccu p a tio n s o f F ed era l W h ite -C o lla r W o r k e rs , O ctober SO, 1960 (U.S. Civil Service Commis sion, 1963, Pamphlet 56-4;. Appendix. Scope and Method of Survey T h is g r o u p o f i n d e x e s is d e s i g n e d to m e a s u r e t r e n d s in s a l a r i e s o f an im p o r t a n t g r o u p o f w o r k e r s in n o n m a n u fa c t u r i n g e m p l o y m e n t . T h e i n d e x e s c o n s i s t o f t h r e e m e a s u r e s o f the m o v e m e n t o f F e d e r a l c l a s s i f i e d e m p l o y e e s ’ s a l a r i e s ; on e in d e x r e f l e c t s the m o v e m e n t c a u s e d b y s t a t u t o r y c h a n g e s in b a s i c s a l a r i e s , the s e c o n d , t h e s e s t a t u t o r y c h a n g e s in c o m b in a t i o n w ith m e r i t o r in g r a d e s a l a r y i n c r e a s e s , and the t h ir d in d e x m e a s u r e s the e f f e c t o f s t a t u t o r y c h a n g e s , i n g r a d e i n c r e a s e s , and c h a n g e s in the d i s t r i b u t i o n of e m p l o y e e s a m o n g the v a r i o u s p a y g r a d e s . C o v e r a g e . T h e F e d e r a l e m p l o y e e s c o v e r e d b y the i n d e x e s p r e s e n t e d h e r e a r e the p e r - a n n u m w o r k e r s w h o s e s a l a r i e s a r e e s t a b l i s h e d b y the F e d e r a l C l a s s i f i c a t i o n A c t s o f 1923 and 1949. T h e w o r k e r s u n d e r stu d y a r e e n g a g e d m a i n l y in c l e r i c a l , a d m i n i s t r a t i v e , and p r o f e s s i o n a l f u n c t i o n s , but s m a l l e r g r o u p s in s u b p r o f e s s i o n a l c a t e g o r i e s and in c r a f t , p r o t e c t i v e , and c u s t o d i a l j o b s a r e a l s o i n c l u d e d . E x c l u d e d f r o m the stu d y a r e (1) m e m b e r s o f the A r m e d F o r c e s , (2) b l u e - c o l l a r w o r k e r s w h o s e w a g e s a r e f i x e d b y w a g e b o a r d a c t i o n , (3) p o s t a l e m p l o y e e s , and (4) p e r d i e m e m p l o y e e s s u b j e c t to the C l a s s i f i c a t i o n A c t and the c l e r i c a l - m e c h a n i c a l h o u r l y e m p l o y e e s o f the B u r e a u o f E n g r a v i n g and P r i n t i n g . (T h e l a s t w e r e c o v e r e d b y the C l a s s i f i c a t i o n A c t o f 1923 but a r e n ot s u b j e c t to the c u r r e n t a c t . ) T w o b r o a d p a y s c h e d u l e s w e r e e s t a b l i s h e d b y the C l a s s i f i c a t i o n A c t o f 1949 f o r the w o r k e r s c o v e r e d b y th is r e p o r t — the G e n e r a l S c h e d u l e , c o v e r i n g w o r k e r s p e r f o r m i n g c l e r i c a l , a d m i n i s t r a t i v e , f i s c a l , s u b p r o f e s s i o n a l , o r p r o f e s s i o n a l f u n c t i o n s , 1 and the C P C S c h e d u l e , c o v e r i n g c r a f t , p r o t e c t i v e , and c u s t o d i a l w o r k e r s . E a c h s c h e d u l e c o n s i s t e d o f a s e r i e s o f s a l a r y g r a d e s in to w h ic h w o r k e r s w e r e c l a s s i f i e d in a c c o r d a n c e w ith t h e i r d u t ie s . E a c h s a l a r y g r a d e h a d a m i n i m u m r a te and a s e r i e s o f a d d it i o n a l p a y s te p s w h i c h w o r k e r s w h o h ad m e t c e r t a i n s ta n d a r d s r e c e i v e d a f t e r sp e cifie d p e rio d s of tim e. 2 B e g i n n i n g in 1955, o n ly s a l a r y t r e n d s o f e m p l o y e e s u n d e r the g e n e r a l s c h e d u l e w e r e u s e d , as the c r a f t s , p r o t e c t i v e , and c u s t o d i a l s c h e d u l e w a s a b o l i s h e d e f f e c t i v e J u ly 1, 1955. A b o u t t w o - t h i r d s o f t h e s e e m p l o y e e s w e r e t r a n s f e r r e d to w a g e - b o a r d c l a s s i f i c a t i o n s and the r e m a i n i n g o n e - t h i r d to the g e n e r a l s c h e d u l e . I n c l u s i o n in the g e n e r a l s c h e d u l e o f about 35, 000 f o r m e r C P C w o r k e r s a f f e c t e d the t h r e e m e a s u r e s o f s a l a r y ch a n g e o n ly s li g h t ly . T h e i n d e x e s f o r 1955 w e r e a d ju s t e d to in c l u d e t h e s e f o r m e r C P C e m p l o y e e s . F e d e r a l C l a s s i f i c a t i o n A c t e m p l o y e e s s t a t io n e d in A l a s k a and H a w a ii w e r e i n c l u d e d f o r the f i r s t t i m e in the I9 6 0 i n d e x e s and o t h e r data u s e d f o r that r e p o r t . A v e r a g e s a l a r y r a t e s w e r e i n c r e a s e d 0. 1 p e r c e n t b y the i n c l u s i o n o f 15, 676 w o r k e r s in the c o u n t r y 's tw o n e w e s t S ta te s . O n ly m i n o r v a r i a t i o n s in the d i s t r i b u t i o n o f e m p l o y m e n t at the v a r i o u s g r a d e s r e su lte d f r o m the a d d it i o n s , m a i n l y b e c a u s e o f the r e l a t i v e l y s m a l l n u m b e r o f w o r k e r s i n v o l v e d . S o u r c e o f D a t a . Data on s a l a r i e s o f C l a s s i f i e d F e d e r a l w o r k e r s h a v e b e e n c o l l e c t e d f r o m the e m p l o y i n g a g e n c i e s at v a r y i n g t i m e i n t e r v a l s b y the U. S. C i v i l S e r v i c e C o m m i s s i o n . T h e e a r l i e s t c o m p l e t e stu d y w a s m a d e in J a n u a r y 1937 and the n ex t in A u g u s t 1939. In the i n t e r i m b e t w e e n A u g u s t 1939 and J u ly 1946, tw o s t u d ie s w e r e m a d e (in 1942 and 1944) w h i c h c o u l d n ot b e u s e d f o r in d e x p u r p o s e s b e c a u s e d a ta w e r e n o t c o m p l e t e with r e g a r d to d i s t r i b u t i o n o f e m p l o y e e s a m o n g v a r i o u s w i t h i n - g r a d e s t e p s . F o r e a c h y e a r s i n c e 1946, h o w e v e r , data h a v e b e e n c o l l e c t e d and ta b u la t e d in a m a n n e r w h i c h m a k e s p o s s i b l e t h e i r u s e in the c o n s t r u c t i o n o f a s e r i e s o f i n d e x e s . 1 Prior to the A ct o f 1949 these workers w ere d ivid ed into three services— c le r ic a l, a dm inistrative, and fisc a l, p rofessional, and subprofessional. The indexes for these ea rlier periods giv e proper w eight to the services that w ere co m b in e d into the general sch ed u le. 2 For the entire CPC services and GS-1—10, six a d d itional pay steps were p rov id ed at 5 2 -w e e k intervals fo llo w e d by three fur ther (lon gevity) steps at 3 -y e a r intervals. For grades G S -1 1—17, ad d ition a l pay steps w ere p rov id ed at 7 8 -w e e k intervals: Five steps for grades GS-11—14, four steps for grades G S -15—17, until S eptem ber 1954, w h en three lo n g e v ity steps at 3 -y e a r intervals w ere added to grades GS-11—15. B eginning in O ctob er 1962, em p loy ees in grades GS-1—17 m ain taining a cce p ta b le le ve ls o f p erform ance pro gressed to the next higher step after 1 year in steps 1, 2, or 3, after 2 years in steps 4, 5 , or 6 , and after 3 years in steps 7, 8, or 9. L ongevity steps, as such, no lon g er exist,* they w ere in corp ora ted into the regular pay sched ule in O ctob er 1962. T here are no a d d itional pay steps for grade G S -1 8. 47 48 J a n u a r y 1937 w a s o r i g i n a l l y c o n s i d e r e d f o r u s e as the b a s e p e r i o d f o r the F e d e r a l c l a s s i f i e d w o r k e r i n d e x e s , s i n c e this w a s the e a r l i e s t d a te f o r w h i c h c o m p l e t e i n f o r m a t i o n w as a v a ila b le. H o w e v e r , in v i e w o f the e c o n o m i c s i g n i f i c a n c e o f 1939, in d e x e s o f w a g e s and e a r n i n g s f o r v a r i o u s g r o u p s o f w o r k e r s t y p i c a l l y m a k e u s e o f this la t t e r y e a r as the b ase p eriod w here p o s s ib le . T o f a c i l i t a t e c o m p a r i s o n s w ith t h e s e o t h e r g r o u p s , 1939 h a s b e e n u s e d as the b a s e y e a r f o r in d e x e s f o r F e d e r a l w o r k e r s . A c t u a l l y the u s e o f the 1939 b a s e d o e s n o t s u b s t a n t ia l ly a l t e r the i n d e x e s . T h e b a s i c p a y s c a l e s in e f f e c t w e r e i d e n t i c a l f o r 1937 and 1939 and the d i s t r i b u t i o n o f e m p l o y e e s w ith in g r a d e s and a m o n g g r a d e s w a s v i r t u a l l y the s a m e in the tw o p e r i o d s . Data f o r 1939, 1946, and 1947 i n c l u d e b o th f u l l - and p a r t - t i m e e m p l o y e e s ; h o w e v e r , data f o r p a r t - t i m e w o r k e r s a r e c o n v e r t e d to f u l l - t i m e r a t e s . M o r e o v e r , the n u m b e r o f p a r t - t i m e w o r k e r s is r e l a t i v e l y s m a l l (o n ly o n e - t e n t h o f 1 p e r c e n t o f the to ta l in 1948 and 1949, the o n ly p e r i o d s f o r w h i c h a b r e a k d o w n f o r the tw o c a t e g o r i e s is a v a i l a b l e ) . H e n c e , t h e i r i n c l u s i o n o r e x c l u s i o n c o u l d n o t a p p r e c i a b l y a f f e c t the d i s t r i b u t i o n o f w o r k e r s a m o n g p a y g r a d e s and s t e p s . C o n s e q u e n t ly , in n o n e o f the in d e x e s w a s any a d ju s t m e n t a t t e m p t e d f o r th is v a r i a t i o n in c o v e r a g e . Index C o n s t r u c t i o n . In c o n s t r u c t i n g the a v e r a g e s a l a r y r a t e i n d e x e s , the e f f e c t o f c h a n g e s in o c c u p a t i o n a l o r g r a d e s t r u c t u r e h a s b e e n e l i m i n a t e d b y the " c h a i n " m e t h o d o f in d e x c o n s t r u c t i o n . F irs t, a vera ges fo r each grade w e re com puted fo r each p e r io d by m u l t i p l y i n g (w e ig h tin g ) e a c h p a y step w ith in the g r a d e b y the n u m b e r o f p e o p l e e m p l o y e d at that ste p in th e g r a d e . N e x t , an a v e r a g e f o r a ll g r a d e s c o m b i n e d w a s c o m p u t e d f o r e a c h y e a r ; the in d iv i d u a l g r a d e a v e r a g e s f o r e a c h p a i r o f s u c c e s s i v e y e a r s w e r e m u l t i p l i e d b y the n u m b e r o f p e o p l e in the g r a d e in the l a t t e r y e a r . (In the f i r s t i n s t a n c e , 1939 and 1946 w e r e p a i r e d b e c a u s e o f the a b s e n c e o f data f o r the in t e r v e n in g y e a r s . 3 ) F i n a l l y , the p e r c e n t a g e r e l a t i o n s h i p b e t w e e n the o v e r a l l a v e r a g e f o r e a c h p a i r o f y e a r s w a s c o m p u t e d and lin k e d to the in d e x f o r the p r e c e d i n g p e r i o d . F o r e x a m p l e , the 1946 in d e x w a s o b t a i n e d b y m u l t i p l y i n g 133 p e r c e n t (the p e r c e n t a g e r e l a t i o n s h i p o f 1946 to 1939) b y th e 1939 in d e x , w h i c h , as the b a s e y e a r , w a s 100. S i m i l a r l y , the 1947 in d e x o f 135 w a s c o m p u t e d b y m u l t i p l y i n g the p e r c e n t a g e r e l a t i o n s h i p b e t w e e n 1946 and 1947 (1 0 1 .8 6 ) b y 133. T h e s a m e m e t h o d o f lin k in g w a s u s e d f o r e a c h s u c c e s s i v e p a i r o f y e a r s — 1947—4 8 , 1948—49 , 1949—50. T h e u s e o f th is m e t h o d s h o w s the e f f e c t o f i n g r a d e r a i s e s and any c h a n g e s in b a s i c p a y s t r u c t u r e w h i c h m a y h a v e o c c u r r e d but e l i m i n a t e s the e f f e c t o f sh ift s am ong g ra d es. T h e in d e x e s o f a v e r a g e s a l a r i e s d i f f e r f r o m the s a l a r y r a te i n d e x e s in on e i m p o r tant r e s p e c t , t h e y r e f l e c t the e f f e c t o f e m p l o y m e n t s h ift s a m o n g g r a d e s , w h ic h w e r e e l i m in a te d in the r a te i n d e x e s . In c o m p u t i n g the a v e r a g e s a l a r y i n d e x e s , e a c h s a l a r y r a te (in c lu d in g a ll w i t h i n - g r a d e s t e p s ) w a s m u l t i p l i e d b y the n u m b e r o f p e o p l e at that r a te in e a c h p e r i o d to p r o d u c e an o v e r a l l a v e r a g e f o r the p e r i o d . T h is a v e r a g e w a s then s i m p l y d i v i d e d b y the o v e r a l l a v e r a g e f o r the b a s e p e r i o d . F o r in d iv id u a l g r a d e s , the s a l a r y r a te and the a v e r a g e s a l a r y i n d e x e s a r e i d e n t i c a l in that the s a m e m e t h o d w a s u s e d f o r c o m p u t i n g g r a d e a v e r a g e s . (E a c h w i t h i n - g r a d e step w a s w e i g h t e d b y the e m p l o y m e n t at that s t e p . ) D i f f e r e n c e s in the s a l a r y ra te i n d e x e s and the a v e r a g e s a l a r y i n d e x e s o c c u r o n ly w h e n the in d iv i d u a l g r a d e a v e r a g e s a r e c o m b i n e d into b roa d er groups. T h e b a s i c p a y s c a l e in d e x ( c o n s t r u c t e d b y the U . S . C i v i l S e r v i c e C o m m i s s i o n th r o u g h 1952) d i f f e r s f r o m the a v e r a g e s a l a r y ra te in d e x o n ly in the c o m p u t a t i o n o f the g r a d e a v e r a g e s . T h e s a m e d i s t r i b u t i o n o f w o r k e r s at p a y s t e p s w ith in a g r a d e is a s s u m e d f o r e a c h p a i r o f years. T h i s in d e x thus r e m a i n s u n a f f e c t e d b y s h ift s in p a y s t e p s w ith in a g r a d e . L ik e the s a l a r y r a te i n d e x e s , it a l s o e x c l u d e s the e f f e c t o f s h ift s in o c c u p a t i o n a l o r g r a d e s t r u c t u r e f r o m o n e p e r i o d to a n o t h e r . In s h o r t , th e b a s i c p a y s c a l e in d e x e s r e f l e c t o n ly c h a n g e s in sa la ry s c a le s voted by C o n g re s s . 3 A lthou gh there w ere no co m p le te salary surveys b e tw e e n 1939 and 1946, it se e m e d d esirable to present an estim ated ind ex o f a vera ge salary rates for a p eriod la te in the war but prior to the increases in pay sca les m ad e in July 1945 and July 1946. Con sequ ently the estim ate for June 1945 was prepared. For this estim ate, the sam e distribution o f em p lo y e e s am on g grades and am ong steps w ithin grades was assum ed for 1945 as for 1939, as it is know n that little or no change due to m erit increases o ccu rre d over the p eriod . V irtu ally the entire ch an ge re fle c te d in the 1945 estim ated in d ex was caused b y the pay raise g iv e n the workers in the CPC grades and in SP-1 and 2 in August 1942. A U .S . GOVERNMENT PRIN TIN G O F F IC E : 1 9 6 5 0 - 7 7 4 - 9 1 BUREAU OF LABOR STATISTICS REGIONAL OFFICES