United States Department of Agriculture

Marketing and Regulatory Programs

Agricultural Marketing Service

Animal and Plant Health Inspection Service

Grain Inspection, Packers and Stockyards Administration

 Directive MRP 4531.1 3/25/13 

SALARY RATE DETERMINATIONS

1. PURPOSE

This Directive establishes Marketing and Regulatory Programs (MRP) policy for 

determining rates of basic pay for employees in positions covered by the General 

Schedule (GS/GM) and the Prevailing Rate (WG/WL/WS) Systems.

2. RELACEMENT HIGHLIGHTS

This Directive replaces MRP Directive 4531.2, Highest Previous Rate, dated 02/15/01.

3. AUTHORITIES

This Directive supplements the following laws, rules, and regulations:

a. Title 5, U. S. Code, Chapter 53;

b. Title 5, Code of Federal Regulations (CFR), Parts 530, 531, 532, and 536; and

c. The Office of Personnel Management’s Federal Wage System – Appropriated 

Fund Operating Manual, found on the Internet at: 

http://www.opm.gov/oca/wage/appfund/

4. POLICY

a. It is MRP policy that employees’ rate of basic pay will be set at the maximum rate 

permitted by law or regulation, except as noted below.

b. In addition to the prohibitions of 5 CFR 531.223 and Subchapter 8-3(e) of the 

Office of Personnel Management’s Federal Wage System – Appropriated Fund

Distribution: AMS, APHIS, GIPSA Originating Office: HRD-HRPB
Page 2 

Operating Manual, the maximum rate payable or highest previous rate (HPR) will 

not be based on: 

(1) A demotion for cause (i.e., as a result of a performance or disciplinary 

action).

(2) An appointment to a seasonal position initially filled under Schedule A 

appointments in the Excepted Service, under 5 CFR 213.3113 (f) (2), in 

the Cotton and Tobacco Program, Agricultural Marketing Service.

(3) A voluntary demotion with no prospect of re-promotion within 120 days 

when the Program has established a written policy on how pay will be set 

(5 CFR 531.221(a)(2). 

(4) A voluntary demotion with prospects of re-promotion within 120 days. 

(5) A rate earned while on an on-call or as-needed (intermittent) work 

schedule.

(6) Erroneous rates. 

NOTE: Rates earned under a mixed tour schedule may be used only as HPR 

while an employee is assigned to either a full-time or part-time work schedule. 

c. Programs may establish additional written policy on the circumstances when HPR 

will be granted for voluntary demotions when the employee has no prospect of repromotion within 120 days. Copies must be provided to the Human Resources 

Division (HRD) - Servicing Personnel Office (SPO) and the Human Resources 

Policy Branch (HRPB) for posting on the web. If a Program has not established a 

written policy, the SPO will set an employee’s pay at the maximum rate permitted 

by law or regulations. Typically, this will result in the granting of HPR.

The authority to establish policy on pay setting for voluntary demotions is delegated as 

follows: 

AMS* Administrator

Associate Administrator

Deputy Administrators

APHIS* Administrator

Associate Administrator

Deputy Administrators

GIPSA* Administrator

Deputy Administrators

*This authority may not be re-delegated.
Page 3

5. OPERATING GUIDELINES

a. Additional information on determining rates of basic pay may be found in the Human 

Resources Desk Guide (HRDG), Subchapter 4531, Salary Rate Determinations. This 

Directive and HRDG Subchapter 4531 are available on the MRP Human Resources 

(MRP HR) home page and on the AMS Administrative Issuances home page.

b. Before this policy may be implemented for employees in recognized bargaining units, 

agencies must discharge their bargaining obligations.

6. INQUIRIES

a. Direct general inquiries on procedural matters to the SPO. 

b. Direct requests for policy interpretations on complex issues to the Pay, Leave and 

Tours of Duty Specialist, HRPB, HRD, MRP Business Services at 301-851-2910.

/s/

Marilyn L. Holland

Deputy Administrator

MRP Business Services