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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 Salga 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"E" 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 Eve 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 SEIU 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&SEW Full-Time Employees Unit Page 12 <br />