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ARTICLE IV <br />4.0 SALARIES <br />4.1 Basic Compensation Plan <br />There is an established basic compensation plan for all full-time personnel who are now <br />employed or will in the future be employed in any of the designated classifications of <br />employment represented by the Union as listed in this MOU and/or its exhibits. <br />4.2 Salary Schedule <br />A. The basic salary and wage schedule contains various salary rate ranges, each <br />comprised of seven (7) steps or rates of pay. <br />The steps within each range are identified by the letters "AAA", "AA", and "A" <br />through "B" inclusive, with Step "AAA" being the lowest step in the range. <br />Step "AAA" is the normal beginning pay rate. <br />Step "AA" is an automatic increase after the completion of six (6) months of service <br />in Step "AAA". <br />Steps "A" through "D" are an automatic step increase after the completion of twelve <br />(12) months of service. <br />Step "E" is a performance based step increase which an employee may be eligible <br />to receive after the completion of twelve (12) months of service in Step "D". <br />The assignment of classifications to salary rate ranges is listed in Exhibit A of this <br />MOU. <br />4.3 Salaries <br />The base salary rate of each employee and classification shall be increased as follows: <br />A. Effective the first full pay period after July 1, 2025, employees in the unit shall receive <br />a five percent (5.0%) base salary increase. <br />B. The City shall ensure the completion of a classification and compensation study and <br />present it to SE1U by January 31, 2026. <br />4.4 Application of Basic Compensation Plan <br />The salary rate ranges contained in Section 4.2 of this article and the City's salary schedule <br />are monthly salary rate ranges. All employees working in classifications of employment <br />2025 MOU City of Santa Ana & SEIU Full -Time Employees Unit Page 12 <br />