(a)
(1) An employee in a position subject to this subchapter shall receive a one-step within-grade increase upon completion of 12 months of service since his last salary increase if his performance during that period of service has been rated “satisfactory” or better, until he has reached the maximum of his grade. A revision of rates in Pay Schedule and an increase in a pay differential under section 554(b) of this subchapter are not salary increases for the purpose of this subsection.
(2)
(A) Teachers and employees under the Education Schedule who meet the requirements for increases shall be placed in the next step effective on the anniversary date of their initial appointment; Provided, however, That teachers, supervisors, principals, and school employees under this schedule who were on leave without pay status during the period after the last previous step increase or after their initial appointment shall not be eligible for a step increase until the completion of 180 school days; Provided, further, That 12-month employees who were on leave without pay status during the period after their last previous step increase or initial appointment shall not be eligible for a step increase until the completion of 260 working days.
(B) Employees under the Education Schedule who are paid for established school vacations in lieu of annual leave and who meet the requirements for increases during an established school vacation shall receive these increases only if they have valid contracts for employment with the Department of Education of the Government of the Virgin Islands for the subsequent school period.
(b) In any case where a regular within-grade salary increase is denied because of less than a “satisfactory” performance rating, the effective date for counting to establish eligibility for the next increment shall be on that date on which said increment would otherwise have been effective.
(c) In any case where a regular employee was demoted to a lower salary range, such demotion shall not affect the effective date of within-grade salary increase in the lower range which would have been due if the employee had remained in the higher salary range, unless such demotion had been made as a result of less than satisfactory performance on the part of such employee.
(d) In any case where a regular within-grade salary increase is denied because of a less than “satisfactory” performance rating, the employee to whom it is denied shall be furnished, by the head of the department, board, agency, commission or other instrumentality of the Government of which he is an employee, a written notice of the denial accompanied by a written statement of the reason or reasons for the less than “satisfactory” performance rating within ten consecutive calendar days following the date on which he would otherwise have been eligible for the increase pursuant to the provisions of this section. The employee shall have ten consecutive calendar days following the receipt of the notice and statement referred to above to file a written appeal of the denial with the Director of Personnel, specifying the errors of fact or conclusion alleged in such notice and statement, and a copy of the appeal shall be submitted to the head of his department, board, agency, commission, or other instrumentality of the Government. The Director shall make a determination, based on the fact presented in the notice of denial, the statement, and the written appeal, within 30 days after the appeal has been filed. If the Director does not alter the performance rating to “satisfactory” or better he shall notify the employee immediately and the employee may file a written appeal of the denial with the Government Employees Service Commission within ten days after notification by the Director. The employee shall submit a copy of the appeal to the head of the instrumentality of the Government of which he is an employee. The Commission shall hold a prompt and expeditious hearing, and shall afford the employee and the head of said instrumentality the opportunity to be heard, to be represented by counsel, and to call and cross-examine witnesses. The strict rules of evidence need not apply. The decision of the Commission shall be final. If the head of the instrumentality of the Government by which the employee is employed fails to furnish the employee with the required notice and statement within the mandatory ten-day period or if either the Director of Personnel or the Government Employees Service Commission determined that the employee's performance warranted a rating of “satisfactory” or better and that the regular within-grade salary increase was erroneously denied, then the employee shall receive and shall be paid the regular within-grade salary increase effective as of the date on which it would have been due to him initially had his performance not been rated less than “satisfactory” by the head of the instrumentality of the Government of which he is an employee.
(e) The head of an agency, with the approval of the Governor, may grant in any year an additional step increase or lump sum cash award of lesser annual value to an employee who, he finds, has rendered meritorious service in the performance of his duties or in the suggestions of improvements in the operations of the service. This award shall not be in lieu of a regular step increase nor shall it be considered a salary increase under this section.