---
kind: "range"
citation: "5 C.F.R. §§ 9701.323–9701.325"
title: "5"
from: "9701.323"
to: "9701.325"
count: 3
url: "https://uscodex.org/cfr/5/9701.323..9701.325"
---

# §9701.323. Eligibility for pay increase associated with a rate range adjustment.

- (a) When a band rate range is adjusted under [§ 9701.322](/cfr/5/9701.322.md), employees covered by that band are eligible for an individual pay increase. An employee who meets or exceeds performance expectations (i.e., has a rating of record above the unacceptable performance level for the most recently completed appraisal period) must receive an increase in basic pay equal to the percentage value of any increase in the minimum rate of the employee's band resulting from a rate range adjustment under [§ 9701.322](/cfr/5/9701.322.md). The pay increase takes effect at the same time as the corresponding rate range adjustment, except as provided in §§ [9701.324](/cfr/5/9701.324.md) and [9701.325](/cfr/5/9701.325.md). For an employee receiving a retained rate, the amount of the increase under this paragraph is determined under [§ 9701.356](/cfr/5/9701.356.md).
- (b) If an employee does not have a rating of record for the most recently completed appraisal period, he or she must be treated in the same manner as an employee who meets or exceeds performance expectations and is entitled to receive an increase based on the rate range adjustment, as provided in [paragraph (a)](#a) of this section.
- (c) An employee whose rating of record is unacceptable is prohibited from receiving a pay increase as a result of a rate range adjustment, except as provided by §§ [9701.324](/cfr/5/9701.324.md) and [9701.325](/cfr/5/9701.325.md). Because the employee's pay remains unchanged, failure to receive a pay increase is not considered an adverse action under [subpart F](/cfr/5/subpartF.md) of this part.

# §9701.324. Treatment of employees whose rate of basic pay does not fall below the minimum rate of their band.


An employee who does not receive a pay increase under [§ 9701.323](/cfr/5/9701.323.md) because of an unacceptable rating of record and whose rate of basic pay does not fall below the minimum rate of his or her band as a result of that rating will receive such an increase if he or she demonstrates performance that meets or exceeds performance expectations, as reflected by a new rating of record issued under [§ 9701.409(b)](/cfr/5/9701.409.md?p=b). Such an increase will be made effective on the first day of the first pay period beginning on or after the date the new rating of record is issued.


# §9701.325. Treatment of employees whose rate of basic pay falls below the minimum rate of their band.

- (a) In the case of an employee who does not receive a pay increase under [§ 9701.323](/cfr/5/9701.323.md) because of an unacceptable rating of record and whose rate of basic pay falls below the minimum rate of his or her band as a result of that rating, DHS must—
  - (1) If the employee demonstrates performance that meets or exceeds performance expectations within 90 days after the date of the rate range adjustment, issue a new rating of record under [§ 9701.409(b)](/cfr/5/9701.409.md?p=b) and adjust the employee's pay prospectively by making the increase effective on the first day of the first pay period beginning on or after the date the new rating of record is issued; or
  - (2) Initiate action within 90 days after the date of the rate range adjustment to demote or remove the employee in accordance with the adverse action procedures established in [subpart F](/cfr/5/subpartF.md) of this part.
- (b) If DHS fails to initiate a removal or demotion action under [paragraph (a)(2)](#a-2) of this section within 90 days after the date of a rate range adjustment, the employee becomes entitled to the minimum rate of his or her band rate range on the first day of the first pay period beginning on or after the 90th day following the date of the rate range adjustment.