Annual salaried employees, whose basic annual salary is below the job rate for their positions and whose performance has been rated higher than “Unsatisfactory” or its equivalent during the preceding evaluation period are eligible to receive performance advances. Employees whose positions are unallocated but are equated to salary grades (other than grade M-8) by the Director of the Budget shall be eligible for performance advances as if allocated to the equated grade.

Performance advances shall become effective on the first day of the first payroll period beginning on or after July 1st, except that advances for education directors paid over 10 months shall become effective September 1st.

Each agency will be assigned a performance advance amount which will be the maximum aggregate increase to base salaries of eligible employees that may be granted as a result of performance advances. Performance advance amounts will be based on the actual number, salaries and grades of eligible employees in each agency and will be assigned by the Director of the Budget. Performance advance amounts may be assigned on a facility or payroll code basis as appropriate.

An agency's performance advance amount will be distributed to eligible employees based upon the actual distribution of ratings. However, where the number of eligible employees is insufficient to enable a proportional distribution of payments, an appropriate rating distribution will be constructed, based on experience. Employees rated “Needs Improvement” or its equivalent will receive an amount equal to one sixth of their job range; employees rated “Effective,” “Highly Effective” or their equivalent will receive one fourth of their job range; and employees rated “Outstanding” or its equivalent will receive up to one third of their job range, depending on the percentage of employees rated “Outstanding” or its equivalent. Employees rated “Unsatisfactory” or its equivalent will not receive advances. In any case, however, where a performance advance payment would result in a basic annual salary above the job rate for the employee's positions, only that portion of the advance which would bring the employee's salary up to the job rate shall be paid.

Employees who are promoted or appointed to a higher salary grade during the evaluation period who are otherwise eligible for an advance shall receive a partial advance prorated on the number of pay periods the employee has served in the higher grade as described in section 147.3(b) of this Part. In addition, at the end of the evaluation period if the employee would have been eligible for an advance in the lower grade, the salary upon promotion shall be reconstructed by applying a prorated advance amount based on number of pay periods served in the lower grade as described in section 147.3(b). However, an employee with 24 or more pay periods of creditable service in both grades during the evaluation period shall receive credits for a full advance; the advance in the higher grade shall be prorated as described in section 147.3(b), while the balance shall be applied to reconstruction of the salary upon promotion. Any advance based on the higher grade shall be added to this reconstructed salary. In each case the performance advance amount used shall be 25 percent of the salary range.