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Salary Administration Administrative Policy #18 Effective, July 1, 2025 I. Policv The City of Portsmouth is an equal opportunity employer and maintains fair and equitable salary administration practices for both internal and external salary actions based on an individual's proven qualifications for a position, overall job performance, and the degree to which an employee's performance and job conduct meets or exceeds expectations. The following guidelines are therefore established to assist in providing for the consistent administration of salary actions. It should be noted these guidelines do not establish a set formula or percentage for determining salary offers or the number of adjustments. Salary offers and salary adjustments will be based on overall consideration of relevant circumstances of the individual case. In all situations, employee salaries may not exceed the maximum salary of the established grade associated with the position. The City Manager retains the authority to make administrative salary adjustments, to create additional classifications, reclassifications, appointments, and positions. Recommendations approved by the City Manager shall become effective on the date determined by the City Manager and after funds have been included in the budget. At the discretion of the City Manager or designee, a general wage increase may be granted to those employees whose salary is at the maximum of the pay grade for the employee's job classification. A. New Employees A new employee shall be paid, at least, the minimum salary of the salary range for the position in which they are hired. In cases where the new employee significantly exceeds the minimum qualifications of the position, the employee may be paid a starting salary above the minimum of the established salary range with the approval of the City Manager or designee. The Department Head must provide written detailed justification to support any recommendation to hire an employee above the minimum of the salary range. The recommendations will be thoroughly reviewed by the Director of Human Resource Management and will include consideration of the individual's overall qualifications, internal equity and other related factors. The Director of Human Resource Management will make recommendations to the City Manager or designee for approval. All full-time employees shall receive a competitive wage rate which shall be determined by the City Manager. This rate shall be reviewed periodically by the Director of Human Resource Management and any appropriate change may be made based on the federal poverty guidelines, federal minimum wage rate, and other relevant information. This pay philosophy does not impact the pay grade assigned to the position. All newly hired employees will be considered probationary for one full year from the employee's continuous service date (i.e., an employee hired on July 1 S° is probationary through June 301" of the following year).