Personnel Policies Manual

  1. It is the policy of the Navajo Nation to pay wages and salaries that are commensurate with the type of work, the level of responsibility and the qualifications required for each job and that are comparable subject to budgetary constraints, to rates being paid for similar work within the Navajo Nation and in other comparable organizations, and to provide for salary adjustments for Navajo Nation employees that are equitable and competitive.

  2. These policies apply to all positions and employees, regardless of the funding source, except employees whose rates of pay are specifically set by legislation.

    1. Each position in the Navajo Nation government is evaluated using a classification system and is assigned a pay grade which establishes the value of the position in relation to other positions within the Navajo Nation government.
    2. The Official Salary Schedule provides pay grade for all classes. Each class title is assigned a pay grade in the approved salary schedule. For every pay grade, there is a “salary range” progressing from minimum to a maximum.
    3. The last step of the pay grade assigned to a position provides the maximum limit employees will be paid for that job.
    1. Each position shall be reviewed by Department of Personnel Management, classified, and assigned to a grade within the pay structure that reflects an equitable value relative to other classifications.
    2. The Department of Personnel Management will annually establish an appropriate pay structure consistent with G.5 herein and any other pay structures necessary to ensure internal and external equity based on the current market average.

    3. Certain occupations may command Special Pay Ranges (premium pay) based on prevailing market pay levels. Department of Personnel Management is responsible for evaluating eligibility and determining the adjusted ranges.

      1. The special ranges shall be effective for one fiscal year.
      2. Continued eligibility for the special rate shall depend on an annual evaluation of market pay levels.
      3. If the special pay range is lower than the standard range, and range reduction results in an employee being above the maximum step, that employee’s pay will be frozen until such time that it falls within the established range.
    4. The Executive Director of the Division of Human Resources and the Appointed Division Directors may jointly adjust the pay rates of employees at certain worksites to reflect the cost of labor difference using appropriate locality pay data. This will include, but not be limited to, the Navajo Nation Washington Office.
    5. The Executive Director of the Division of Human Resources and the Appointed Division Directors may jointly consider additional factors such as remoteness of worksite and hard to fill positions in determining and adjusting pay.

  5. The Department of Personnel Management is responsible for reviewing appointment rates based on the qualifications of the applicant compared to the established minimum qualifications for the position with the exception of programs.

    1. New employees will generally be assigned by Department of Personnel Management to Step “A” of the pay grade to which the position is assigned. No employee will be paid below Step “A”.
    2. Applicants with qualifications greater than those required at entry level may be hired at a rate within the “salary range” of the pay range assigned.
    3. The Executive Director of the Division of Human Resources and the Appointed Division Directors may jointly waive the requirements under this subsection provided it is not contrary to Navajo Nation law and hire at a rate within the established “salary range.”

  6. When all recruitment and selection procedures have been followed and an applicant cannot be recruited, a special rate may be authorized. The authorization must be requested in writing and approved jointly by the Executive Director of the Division of Human Resources and the Appointed Division Directors prior to recruitment. Special rates are subject to division approval and funds availability.

  7. Pay adjustments resulting from a promotion, transfer or reclassification of a position are effective the pay period following the date of approval by the Department of Personnel Management and shall not be retroactive.

    1. Transfer

      If an employee is transferred from one position to another in the same grade (lateral) no pay adjustment will occur. If transferred to a position in a higher grade, see G.3 below. If transferred to a position in a lower grade, see G.4 below.

    2. Reclassification

      1. If an employee’s position is reclassified which results in the assignment of a higher pay grade, the employee’s pay will be adjusted as outlined in G.3 below. If the reclassification results in the assignment of a lower pay grade, the employee’s pay will be adjusted as outlined in G.4 below; or if the grade assignment remains the same, then no pay adjustment will occur.
      2. The eligibility date for the next step increase will be adjusted pursuant to G.6 below whenever a pay increase occurs.

    3. Promotion

      An employee is promoted when he/she is moved from one position to another that is in a higher grade. Pay adjustments can be made as follows:

      1. an employee meeting the minimum qualifications for the new position will be paid at Step “A“of the assigned pay grade.
      2. notwithstanding G.1 above, based on an employee’s qualifications, an increase of up to two steps may be granted and shall not exceed the maximum of the pay range assigned. The employee’s eligibility date for the next step increase will be adjusted pursuant to G.6 below.

    4. Demotion

      An employee is demoted when he/she is moved from one position to another in a lower grade. His/her rate of pay shall be reduced to the same step in the lower pay grade or the entry level rate of the lower pay grade. The salary adjustment shall not be to a rate below Step “A”.

    5. General Wage Adjustment

      Each year the Department of Personnel Management will recommend a General Wage Adjustment. The effective date will be determined by the Department of Personnel Management. All employees will receive that same percentage adjustment, with the exception of those assigned grade step code 99A. The General Wage Adjustment does not impact the eligibility date for employee step increases.

    6. Step Increases

      A regular status (full-time and part-time) employee whose performance is rated as “Significantly Exceeds Standards” or “Outstanding” will receive a step increase pursuant to the following:

      1. An employee must have been in his/her current position for at least six months during the current rating period.
      2. The step increase will be effective one year from the date of the last step increase or on the employee’s anniversary date, if the employee is at Steps “A”, “B”, “C”, “D”, or “E”, two years from the date of the last step increase or on the employee’s anniversary date, if the employee is at Steps “F”, “G”, “H”, or “I”, or three years at Steps “J” and “K”. If the employee is at Step “L”, no step increase will occur.
      3. All step increases shall be reviewed and approved by a committee, meeting monthly, comprised of a representative from and appointed by the heads of, the Department of Justice, Division of Human Resources, Department of Personnel Management, and the Office of Legislative Services and will be referred to as the Step Increase/Bonus Review Committee.

    7. Acting Status Assignment

      1. An employee on acting status assignment must be compensated at the first step of the assigned grade for the duration of the assignment if he/she meets the requirements of the position and is approved by the Department of Personnel Management prior to the assignment.
      2. If an employee’s current salary equals or exceeds entry level for the acting status position, the employee may receive a one step increase for the duration of the assignment.
    1. Any employee who is required to work on a holiday and does work shall be paid at twice his/her regular rate of pay for hours worked.
    2. Holiday pay will cover only those hours worked in one day.
    3. Early release of employees is not counted as a holiday when calculating holiday pay.

  9. Merit pay bonus payments are lump sum payments, excluding applicable taxes and deductions, awarded to employees for performance.

    1. Cash awards may be given to eligible employees based on their overall performance during the applicable rating period.

      1. Eligibility for Merit Pay

        1. An employee must be regular status (full-time and part-time) with at least one year of continuous service with the Navajo Nation and six months in his/her current position.
        2. An employee must be recommended for merit pay by the immediate supervisor and approved by the Step Increase/Bonus Review Committee.
        3. An employee must have an overall performance rating of “Significantly Exceeds Standards” or “Outstanding”.
        4. An employee is deemed ineligible for merit pay if he/she terminates employment prior to approval by the Step Increase/Bonus Review Committee referenced above.
        5. An employee must not have received a step increase or bonus for the same rating period.
    2. Merit bonus payments will be processed in accordance with procedures developed and issued by the Department of Personnel Management and approved by the Step Increase/Bonus Review Committee.

  10. When it is determined by the Department of Personnel Management to be in the best interest of the Navajo Nation, bonus payments may be considered and approved by the Step Increase/Bonus Review Committee and the committee will address these requests on a case-by-case basis.

  11. Shift differential may be paid provided funds are available and a request is approved by the Department of Personnel Management. Shift differential will be consistent with local industry practices.

  12. Department of Personnel Management is responsible for developing and issuing procedures for compensation of employees on call.

    1. An employee may request a pay advance in the following situations:

      1. When an employee is required to travel on official business. Travel must be in accordance with existing travel policies.
      2. Serious illness or death in the immediate family. See procedures for requesting “emergency” pay advances for serious illness or death in the immediate family issued by the Office of the Controller.
    2. All pay advances will be deducted in accordance with the current payroll processing.