Common use of Merit Step Increases Clause in Contracts

Merit Step Increases. The pay plan provides for several merit pay steps of approximately 5% within the pay range for each classification. Each employee may advance from the pay step at the beginning of their salary range to the pay step at the top of the salary range for their classification on the basis of supervisory evaluations of job performance. Article 25 (Performance Evaluations) of this Memorandum of Understanding lists the performance evaluation schedule for new employees. Supervisors shall evaluate employee performance according to a procedure determined unilaterally by the City and published as a provision of the Personnel Rules or Administrative Manual The employee shall be granted a pay step advancement (approximately 5%) with each successful EMPLOYEE JOB PERFORMANCE EVALUATION that certifies that the employee meets job performance standards and expectations. However, such pay step advancements shall not exceed the top of the pay range for the employee’s classification.