Geographic Pay Differential is additional compensation which may be authorized by the Director of Classification and Compensation subject to approval by the Director of the Budget. The pay differential may be prescribed for those employees in the same or related occupations who are employed in a particular geographic area or location.
The additional compensation may be designated as a percentage of the basic salary or a fixed dollar amount. The differential is not part of the employee’s basic annual salary and does not affect other provisions of the laws concerning salary determination.
The differential is added as an adjustment to the hiring and job rates of the grade and, effective April 1, 1986, the longevity salary or step to which the employee may be entitled.
Employees not receiving Longevity Pay –
Employees whose basic annual salary is at or below the job rate will receive the full differential and those whose basic annual salary is above the Job Rate will receive the difference between their annual salary and the adjusted job rate for the position.
A geographic pay differential is established on April 1, 2010 at $8000 for a position which is allocated to PS&T grade 20, resulting in an adjusted job rate for the position of $80076 ($72076 + $8000 = $80076).
- An employee in the position whose basic annual salary is $56813 (hiring rate) would receive the full $8000 geographic pay.
- An employee in the position whose basic annual salary is $73868 (above job rate) would receive $6208 geographic pay (the difference between $73868 and $80076).
- An employee in the position whose basic annual salary is $81690 (above actual and adjusted job rates) would receive no geographic pay.
Part-time employees in positions for which a Geographic Pay Differential has been authorized receive such compensation pro-rated in accordance with percentage of full time worked. Eligible employees on authorized leave with partial pay continue to receive such compensation on the pro-rated basis.
The payment of a differential is terminated when an employee ceases to be employed in the position, area or location for which the pay differential was authorized. The Geographic Pay Differential may be changed or terminated at any time by the Director of Classification and Compensation with the Budget Director’s approval.
Civil Service Section 130.7
Other helpful links:
SPMM Geographic Pay
Civil Service Special Salary Treatment Search Engine
Bureau of State Payroll Services