4 Pay Administration

410 Pay Administration Policy for Nonbargaining Unit Employees

411 General

411.1 Scope

This subchapter establishes the conditions and procedures for setting salaries of Postal Service™ nonbargaining unit career and noncareer employees in supervisory, professional, technical, clerical, administrative, and managerial positions in the Executive and Administrative Schedule (EAS) and applies to all employees except the following:

  1. Employees covered by collective bargaining agreements (except when assigned to nonbargaining positions).
  2. Employees assigned to the Postal Career Executive Service (PCES).
  3. Employees in the Office of Inspector General.
  4. Employees in the Inspection Service designated as law enforcement.
  5. Employees in attorney positions in the office of the General Counsel.

411.2 Objectives

The principal objectives of Postal Service compensation policies are:

  1. To provide compensation for Postal Service work comparable to compensation paid for comparable levels of work in the private sector of the U.S. economy.
  2. To provide compensation that will attract, motivate, and retain qualified and capable personnel.
  3. To provide adequate and reasonable differentials in rates of pay between employees in the clerk and carrier grades in the line work force and supervisory and other managerial personnel.
  4. To provide for effective administration of salary expenditures.
  5. To provide for recognition of and reward for differences in individual ability and performance.
  6. To provide uniform methods for establishing and applying salary rates to employment, placement, promotion, and other changes in the status of employees.

411.3 Responsibility

411.31 Assignment of Positions

The vice president of Employee Resource Management has the responsibility for determining the appropriate dollar range and salary grade for each position covered by 410.

411.32 Policy and Procedural Changes

Recommendations concerning compensation policy and procedural matters are evaluated and developed under the direction of the vice president of Employee Resource Management. Exceptions to the policies contained in this subchapter require approval by the vice president of Employee Resource Management or designee.

411.33 Determination of Salaries
411.331 Responsibility of Appointing Officer

The appointing officer has the primary responsibility for setting salaries of employees in nonbargaining unit positions according to the policies contained in this subchapter.

411.332 Approval Required

In all cases, the appointing officer’s superior must approve the salaries set by the appointing officer.

411.333 EAS A–E Postmaster Rates

A–E postmasters are paid at hourly rates for less than a 40–hour week (see Rate Schedule F). For changes between A–E postmaster and full-time positions, these hourly rates are first converted to full-time annual salaries using the following equation:

Full-time Annual Salary = Hourly Rate X 2080.

411.4 Payment Procedures for Post Office Space

411.41 Lease Agreement
411.411 Basis for Payment

A postmaster who has a lease agreement is reimbursed on the basis of actual lease rates for the location and not on the basis of the postmaster’s salary grade.

411.412 Newly Appointed Postmaster

Postmasters who are newly appointed as EAS A–E or EAS-11 are (a) paid under standard lease agreements for the space they provide and (b) receive equipment from the Postal Service supply system.

411.413 Conversion to Rental Allowance

Conversion from the lease agreement system to the rental allowance system is not permitted.

411.42 Rental Allowance
411.421 Allowance Amounts

The rental allowance for EAS A–E postmasters who furnish quarters and equipment covers rent, fuel, lights, and equipment. The rental allowance maximums for these Post Offices™ are fixed as follows:


Post Office Service Hour Category

Annual Rental











411.422 Change in Allowance

If the salary grade of a postmaster (who receives an allowance) is increased, the rental allowance is not increased. If, however, the grade of the postmaster is decreased, the allowance is reduced to the amount shown in 411.421 for the new (lower) grade.

411.423 Manner of Payment

Normally, payment of rental allowance is made at the same time and in the same manner as payment for basic compensation. (See also 411.424 and 411.425.)

411.424 Absent Postmaster

When a postmaster is absent on approved leave without pay, the allowance continues to be paid to the postmaster — not to the person performing the duties of the postmaster.

411.425 Vacant Postmaster Position

When a postmaster’s position is vacant and the facilities are still used by the Postal Service, claims for payment must be filed with the Eagan Accounting Service Center (ASC). Note that:

  1. If the facilities are furnished by the former postmaster (or his or her estate), the allowance continues to be paid to the former postmaster (or his or her estate) until a new postmaster is appointed. A lease agreement is then negotiated.
  2. If the person performing the duties of postmaster provides the facilities, the allowance for the salary grade of the Post Office is paid to the person performing the postmaster duties.
411.426 Conversion to Lease Agreement

A postmaster receiving rental allowance is permitted to convert to the lease agreement system at any time. If the rental allowance is to be discontinued, the change is effective on the date of the lease agreement.