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The officer grades are all one higher than their NATO equivalent (except O-1) as the O-1 and O-2 grades are both equivalent to the NATO code of OF-1. Hence O-3 is equivalent to OF-2, O-4 is equivalent to OF-3, and so on. U.S. warrant officer grades (W-1 through W-5) are depicted in the NATO system as WO-1 through WO-5. The United States is the ...
The fiscal year 2010 president's budget request for a 2.9% military pay raise was consistent with this formula. However, Congress, in fiscal years 2004, 2005, 2006, 2008, and 2009 approved the pay raise as the ECI increase plus 0.5%. The 2007 pay raise was equal to the ECI. A military pay raise larger than the permanent formula is not uncommon.
The law specified what percentage of the enlisted strength of the army were allowed in each of the seven grades. The first grade would contain .6% of the army's enlisted men, the second grade 1.8%, the third grade 2%, the fourth and fifth grades 9.5%, the sixth grade 25% and the remaining 51.6% in the seventh grade.
NATO Ranks and Grades—Official NATO Ranks / Pay Grades Table; STANAG 2116 (Edition 5) History of NATO – the Atlantic Alliance—UK Government site; NATO codes for grades of military personnel from STANAG 2116; Nato Army/Navy/AirForce Enlisted Ranks Archived 2023-12-01 at the Wayback Machine from visualinformation.info
The main difference is in the commissioned officer ranks, where the US system recognizes two grades at OF-1 level (O-1 and O-2), meaning that all O-x numbers after O-1 are one point higher on the US scale than they are on the NATO scale (e.g. a major is OF-3 on the NATO scale and O-4 on the US scale).
An analysis of NSPS by Federal Times, a branch of the Defense News Media Group, in August 2008 found that the January 2008 issuance of performance-based pay raises and bonuses, the first large-scale payout under the new system, was filled with inequalities. The analysis found that white employees received higher average performance ratings ...
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A pay grade is a unit in systems of monetary compensation for employment. It is commonly used in public service, both civil and military , but also for companies of the private sector. Pay grades facilitate the employment process by providing a fixed framework of salary ranges, as opposed to a free negotiation.