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Compensation Policies – General Rules and Application


Compensation Policies are the collection of rules that govern the calculation of salary and benefit entitlement for all individuals employed by the Government of Newfoundland and Labrador. Currently there are 24 Compensation Policies and these are listed below:

  1. Determination of Salary and Benefits for New Employees Policy
  2. Salary and Benefits Upon Transfer from an Agency, Board or Commission Policy
  3. Supervisory Salary Adjustment Policy
  4. Pay Plan Conversion Policy
  5. Transfer of Employees Policy
  6. Promotions
  7. Demotion (Voluntary and Involuntary)
  8. Exclusion from the Demotion Procedures
  9. Exceptions and Appeals
  10. Increments
  11. Point Bands
  12. Position Rating
  13. Simultaneous Pay Action
  14. Temporary Assignments
  15. Re-Employment after Lay-off
  16. Emoluments and Gratuities
  17. Retroactive Salary Adjustments
  18. Step Progression
  19. Red Circle
  20. Secondments
  21. Contractual Employment
  22. Market Adjustment Policy
  23. Management Overtime Policy
  24. Student Employment and Compensation Policy

These policies are found in the Compensation Policy and Procedures Manual (CPPM) on file in the Strategic Human Resource Management Divisions. The Human Resource Secretariat (HRS) is in the process of updating these policies and as new policies are approved by Treasury Board they will be uploaded on the HRS website and removed from the CPPM.

Policy Statement

The determination of salary and benefit entitlements for all individuals employed by the Government of Newfoundland and Labrador must be in accordance with the Compensation Policies approved by Treasury Board.


These policies apply to all employees of the core public service with the exception of those employees on the Executive Pay Plan. Bargaining unit employees should consult their respective collective agreement and where there is a conflict, the collective agreement shall prevail.

Treasury Board, through section 8 of the Financial Administration Act, has the authority to apply any of its compensation policies to Government's Agencies, Boards and Commissions (ABCs) with the exception of Nalcor, Memorial University and the Research and Development Corporation of Newfoundland and Labrador.

As compensation polices are updated it will be noted whether or not the new policy will apply to ABCs. If the policy is to apply to ABCs then departments will notify their ABCs accordingly. Any ABC who indicates that they are not currently compliant is directed to submit an implementation plan which ensures compliance or obtain support from their respective Minister to seek Treasury Board approval for an exemption to the policy, if they deem that a particular policy is inappropriate for their operation.


For terms that are common to the Compensation Policies, click on the link below.


Human Resource Secretariat

It is the responsibility of the Human Resource Secretariat to:

  • Review the Compensation Policies and provide recommendations for revisions to Treasury Board as appropriate;
  • Ensure that policies are accessible to all employees, managers and Strategic Human Resource Management (SHRM) Divisions;
  • Provide interpretation and guidance to SHRM Divisions regarding these policies; and
  • Ensure positions are appropriately classified and assigned a level within a pay plan.


It is the responsibility of the Deputy Ministers of Departments to:

  • Ensure that there is adherence to these policies; and
  • Ensure that the Agencies, Boards and Commissions reporting to their Minister are aware of the current Compensation Policies.

Strategic Human Resource Management (SHRM) Divisions

It is the responsibility of SHRM Divisions to:

  • Ensure that managers are made aware of the Compensation Policies that affect employees' salary and benefit entitlement; and
  • Identify any compensations situations which are inconsistent with these policies and notify the Human Resource Secretariat, Compensation and Benefits Division of the inconsistent practice.


It is the responsibility of Managers to:

  • Ensure that their employees are made aware of the Compensation Policies that affect their salary and benefit entitlement; and
  • Notify the SHRM Division as soon as possible after they become aware of a salary and benefit inconsistency.


It is the responsibility of Employees to:

  • Be aware of the policies that affect their salary and benefit entitlement; and
  • Report any discrepancy in their salary and benefits to their Manager or respective SHRM Division immediately.

Last Update: March 26, 2012

Last Updated:
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