Your step increase was denied — here is the path back.

A WIGI denial feels punitive but operates surgically. The agency is not saying you are removable, not starting a removal clock, and not affecting your current pay. It is saying: you have not demonstrated the acceptable level of competence required for the next step increase. The consequence is narrow — no pay raise this cycle — but the procedural track is specific, and the appeal window closes fast.

Section I What a WIGI denial is — and what it is not

A Within-Grade Increase is a periodic step increase within the employee's current GS grade. Under 5 CFR 531.404, WIGIs are granted automatically upon completion of the applicable waiting period (1 year for steps 1–3, 2 years for steps 4–6, 3 years for steps 7–10) if the employee's performance is at an acceptable level of competence. A WIGI denial is the agency's determination that the employee has not met the ALOC standard and therefore will not receive the next scheduled step increase.

What the denial affects

The denial affects one thing: the step increase scheduled for the current WIGI eligibility date. It does not affect:

• Your current pay rate — you remain at your current step
• Your grade — no reduction in grade occurs
• Your position — you continue in your current position
• Your eligibility for promotion, awards, or other personnel actions (though the underlying performance may)
• Your retirement service credit or benefits calculations directly

What it is not

A WIGI denial is frequently confused with other federal personnel actions. It is not:

• A Performance Improvement Plan — a PIP is a procedural step under 5 CFR Part 432 that precedes a Chapter 43 removal. A WIGI denial is a pay action under 5 U.S.C. 5335 that blocks a step increase. They can occur together or separately. See Workplace Topic 11 on Performance Improvement Plans.
• A rating of record — the rating of record is the annual performance appraisal outcome. A WIGI denial is based on the rating of record but is a separate personnel action with its own procedural requirements. See Workplace Topic 09 on How the Federal Performance System Works.
• A Chapter 43 removal — Chapter 43 removals are based on unacceptable performance on critical elements after a PIP. A WIGI denial is based on a determination that performance is below ALOC for the next step.
• An adverse action under Chapter 75 — Chapter 75 adverse actions cover suspensions of more than 14 days, demotions, removals, and furloughs of 30 days or less. A WIGI denial is none of these.
• A suspension of pay — your current pay continues uninterrupted.

Who is subject to a WIGI denial

WIGI denials apply to General Schedule employees occupying permanent positions at less than the maximum step of their grade, under 5 CFR 531.402(a). Employees covered by separate pay systems — Senior Executive Service, Senior Level/Scientific and Professional, Administrative Law Judges, Foreign Service, Title 38 health care positions in the Veterans Health Administration, and employees under demonstration projects such as AcqDemo — are subject to different pay progression rules and are generally not subject to the 5 CFR Part 531 WIGI denial procedures.

Section II Statutory and regulatory framework

5 U.S.C. 5335 — the statute

Section 5335 of Title 5 U.S. Code governs periodic step-increases for General Schedule employees. Subsection (a) establishes the waiting-period schedule. Subsection (b) requires that WIGIs be granted if the employee has not received an equivalent increase during the waiting period and if the employee's performance is at an acceptable level of competence. Subsection (c) provides that an employee whose WIGI is withheld is entitled to prompt written notice of the reasons and a reasonable opportunity to demonstrate an acceptable level of competence. Subsection (c) further establishes that the employee may appeal the denial under procedures prescribed by OPM, which OPM has implemented through 5 CFR Part 531 Subpart D and the MSPB has implemented through 5 CFR Part 1201.

5 CFR Part 531 Subpart D — the regulation

Subpart D of 5 CFR Part 531 ("Within-Grade Increases") implements 5 U.S.C. 5335. Key provisions:

• 5 CFR 531.402 — coverage (permanent GS employees at less than the maximum step)
• 5 CFR 531.403 — the acceptable level of competence definition
• 5 CFR 531.404 — earning the WIGI — the waiting period and ALOC requirements
• 5 CFR 531.407 — the determination of an acceptable level of competence
• 5 CFR 531.409 — procedures on denying an acceptable level of competence determination — the advance notice, opportunity to reply, and written decision requirements
• 5 CFR 531.410 — reconsideration of the negative determination
• 5 CFR 531.411 — continuing evaluation after a WIGI denial
• 5 CFR 531.413 — effect of WIGI denial on subsequent WIGI eligibility
• 5 CFR 531.414 — study of positions

5 CFR 1201.3(a)(8) — MSPB jurisdiction

The MSPB has appellate jurisdiction over a "reconsideration decision sustaining a negative determination of competence for a general schedule employee" under 5 U.S.C. 5335(c) and 5 CFR 531.410. This jurisdiction is specifically carved out in 5 CFR 1201.3(a)(8). The jurisdiction attaches only after the agency has issued a reconsideration decision — the initial denial itself is not directly appealable to MSPB.

Section III The acceptable level of competence standard

The entire WIGI denial turns on a single determination: whether the employee's performance is at an acceptable level of competence (ALOC) for the next step. Understanding what ALOC means in practice is essential to both meeting it and challenging a denial.

Statutory definition

Under 5 U.S.C. 5335(a)(3), an employee earns a WIGI if their work is of "an acceptable level of competence as determined by the head of the agency." The statute itself provides no specific definition — the ALOC determination is committed to agency discretion within the framework established by OPM regulations.

Regulatory standard

Under 5 CFR 531.403, an employee is performing at an acceptable level of competence if "the employee's performance meets the established performance requirements." For employees covered by 5 U.S.C. Chapter 43 performance appraisal systems, 5 CFR 531.404(a)(2) provides that ALOC is met when the most recent rating of record is equivalent to a Level 3 (Fully Successful) or higher. This is the standard that applies to the vast majority of federal employees.

Variables that complicate the ALOC determination

Even where a Fully Successful rating of record exists, several variables can complicate an ALOC determination:

• Waiting period service — whether the employee served sufficient time in the position during the waiting period to demonstrate performance
• Extended absences — extended leave, detail assignments, or training away from the position of record may affect the evaluation
• Details to other positions — time in a detail position may or may not count toward ALOC, depending on agency policy
• QSIs granted — a prior Quality Step Increase affects WIGI waiting period calculations but not the ALOC determination itself
• Performance standards never issued — if the agency failed to issue performance standards at the start of the appraisal period, the employee cannot be held accountable for failing to meet standards they did not receive
• Minimum agency performance period — if the employee has not served the minimum period required by agency policy to evaluate performance, an ALOC determination may be premature
• Service credit under back pay provisions — periods of service credited under 5 U.S.C. 5596 back pay rules may count toward WIGI eligibility

Each of these variables can be raised on reconsideration or MSPB appeal to challenge the denial. The agency bears the burden of showing the ALOC determination was supported by substantial evidence.

Agencies not covered by 5 U.S.C. Chapter 43

For employees in agencies or positions not covered by 5 U.S.C. Chapter 43 — Foreign Service employees under the Foreign Service Act, physicians, dentists, podiatrists, optometrists, chiropractors, nurses, and other Veterans Health Administration employees paid under 38 U.S.C. Chapter 73, Administrative Law Judges, and positions in certain intelligence agencies — ALOC determinations follow separate procedures established under the applicable authorities. The general 5 CFR Part 531 Subpart D framework does not directly apply, though many of the procedural protections are parallel.

Section IV The denial procedure and advance written notice

Under 5 CFR 531.409, a WIGI denial follows a specific procedural sequence. Failure by the agency to comply with any step creates a procedural defense at the reconsideration and MSPB appeal stages.

Step 1 — Notice of planned denial

Before issuing a final WIGI denial, the agency must provide the employee with advance written notice identifying the reasons why the agency proposes to find the performance below an acceptable level of competence. The notice must specify what the employee must do to demonstrate acceptable performance. The employee must be given a reasonable time to demonstrate ALOC before the denial becomes final.

This "opportunity to demonstrate acceptable performance" under the WIGI denial framework is similar in concept to a PIP but procedurally distinct. The period is typically shorter than a PIP (often 30–60 days) and is specifically focused on whether performance reaches ALOC for the next step, not on whether performance is above the Unacceptable level.

Step 2 — Written denial decision

If, after the opportunity to demonstrate ALOC, the agency determines that performance remains below an acceptable level, the agency issues a written denial decision. The decision must:

• State that the WIGI has been denied
• Identify the reasons the employee's performance is below ALOC
• Inform the employee of the right to request reconsideration
• Identify the agency official to whom the reconsideration request should be addressed
• State the deadline for filing reconsideration (typically 15 calendar days from receipt, per agency policy)
• Inform the employee of further appeal rights to MSPB following reconsideration

Step 3 — Effect on current pay

The denial prevents the step increase from taking effect on the scheduled WIGI date. The employee remains at the current step at the current pay rate. No retroactive pay reduction occurs — the denial is forward-looking only, blocking a future increase rather than reducing current pay.

Common procedural errors

Agency procedural errors that can be raised on reconsideration or MSPB appeal include:

• Failure to provide advance written notice of the proposed denial before the WIGI effective date
• Failure to identify specific reasons for the determination — generic statements of "unacceptable performance" without enumerated instances
• Failure to provide a reasonable opportunity to demonstrate ALOC before the final denial
• Use of a standard different from the approved performance standards in effect during the waiting period
• Failure to inform the employee of reconsideration and MSPB appeal rights
• Denial based on factors other than performance against the approved standards (e.g., personality conflict, protected activity)

Section V Reconsideration — your first-level challenge

Reconsideration under 5 CFR 531.410 is the mandatory first step in challenging a WIGI denial. It is not optional — MSPB jurisdiction does not attach until reconsideration has been requested and decided.

Who decides reconsideration

The reconsideration decision must be made by an agency official at a higher level than the official who made the initial negative determination. In practice this is typically the employee's second-line supervisor, a regional HR director, or a designated reconsideration official in the agency's personnel office. The reconsideration official must be sufficiently separated from the initial decision that the review is meaningful.

The request for reconsideration

The request should be in writing and should:

• Identify the original denial decision by date and the deciding official
• State specifically the reasons the employee believes the denial was erroneous
• Attach supporting evidence — performance documentation, emails from the supervisor indicating acceptable performance, evaluations from other supervisors, metrics achieved, completed projects, awards received, training completed
• Identify any procedural defects in the initial denial (e.g., standards changed mid-cycle, no advance written notice, reasons not specified)
• Identify any affirmative defenses (discrimination, whistleblower retaliation, prohibited personnel practices)
• Request specific relief — typically reversal of the denial and retroactive WIGI with back pay

Filing deadline

5 CFR 531.410 does not prescribe a specific deadline for reconsideration requests — it leaves the deadline to agency policy. The typical agency deadline is 15 calendar days from receipt of the denial letter. Some agencies allow 30 days. The specific deadline will be stated in the denial letter itself. Missing the deadline is fatal: without a timely reconsideration request, there is no MSPB jurisdiction.

The reconsideration decision

Under 5 CFR 531.410, the reconsideration decision must be in writing, must be based on consideration of the employee's response, and must inform the employee of further appeal rights if the denial is sustained. The reconsideration official has three possible outcomes:

• Reversal — the WIGI is granted retroactively to the original effective date with back pay
• Sustainment — the denial stands; the employee may appeal to MSPB within 30 days
• Modification — the agency grants the WIGI effective a later date or under modified terms

Strategic considerations at the reconsideration stage

Reconsideration is often the best opportunity to reverse a WIGI denial because:

• The higher-level reconsideration official has authority to reverse without external proceedings
• Agencies often prefer to resolve WIGI denials internally rather than defend them at MSPB
• The reconsideration process allows the employee to present evidence not included in the original decision
• Procedural errors by the initial decision-maker are often acknowledged at reconsideration

Consulting with a federal employment attorney or union representative at the reconsideration stage is often more cost-effective than waiting for MSPB. See Workplace Topic 45 on Retaining Counsel.

Section VI MSPB appeal — the external review

If the reconsideration decision sustains the WIGI denial, the employee may appeal to the Merit Systems Protection Board under 5 CFR 1201.3(a)(8).

The 30-day filing window

Under 5 CFR 1201.22(b)(1), the MSPB appeal must be filed within 30 days of the effective date of the action, or 30 days after the employee's receipt of the reconsideration decision, whichever is later. For WIGI denials, the reconsideration decision date is typically the operative date. The 30-day deadline is strict — late appeals are routinely dismissed for lack of jurisdiction unless the employee can show good cause for the delay.

MSPB Form 185

The MSPB appeal is filed using MSPB Form 185 (Appeal Form), available at www.mspb.gov. Required contents under 5 CFR 1201.24(a):

• The name and address of the appellant
• Identification of the agency action being appealed
• A copy of the original WIGI denial decision
• A copy of the reconsideration decision sustaining the denial
• A statement of the relief requested
• The basis for the appeal — procedural, substantive, or affirmative defense grounds
• Identification of any representative (attorney or otherwise)

Appeals are filed through MSPB's e-Appeal electronic filing system (the exclusive filing channel under 5 CFR 1201.14) or by mail, facsimile, or personal delivery to the MSPB regional or field office with jurisdiction over the employee's duty station. The e-Appeal system is at mspb.gov.

Evidentiary standard at MSPB

On a WIGI denial appeal, the agency bears the burden of proving by substantial evidence that the employee's performance was below an acceptable level of competence. Substantial evidence is a lower burden than preponderance of the evidence — the agency must show that a reasonable person could conclude the performance was below ALOC, not that it was more likely than not. This standard is similar to the standard applied in Chapter 43 removal appeals.

Possible MSPB outcomes

The administrative judge assigned to the appeal will issue an initial decision with one of three outcomes:

• Reversal — the AJ finds the agency failed to prove below-ALOC performance; the denial is reversed and retroactive WIGI with back pay is ordered
• Sustainment — the AJ finds the agency met its burden; the denial is sustained
• Remand — the AJ finds procedural defects requiring further agency action

Either party may file a Petition for Review (PFR) to the full Board within 35 days of the initial decision under 5 CFR 1201.114. The Board's final decision may be further appealed to the U.S. Court of Appeals for the Federal Circuit, but judicial review of WIGI denial cases is narrow.

Affirmative defenses at MSPB

Even where the agency can prove below-ALOC performance, the employee may prevail by proving an affirmative defense:

• Discrimination based on race, sex, age, disability, or other protected characteristics
• Whistleblower retaliation under the Whistleblower Protection Act
• Prohibited personnel practice under 5 U.S.C. 2302
• Harmful procedural error by the agency

See Workplace Topic 02 on MSPB Appeals for full MSPB appellate procedure, and Workplace Topic 03 on Prohibited Personnel Practices.

Section VII After the denial — delayed WIGI, retroactive pay, next steps

Continuing evaluation after sustained denial

Under 5 CFR 531.411, after a WIGI denial is sustained, the agency must continue to evaluate the employee's performance. The supervisor must make a reasonable effort to assist the employee in reaching an acceptable level of competence. When the employee does reach ALOC, the agency must grant the WIGI effective the date ALOC was achieved — this is the "delayed WIGI."

The delayed WIGI

A delayed WIGI becomes effective when the supervisor makes a new ALOC determination finding performance acceptable. The delayed WIGI is not granted retroactively to the original denial date — it takes effect going forward from the date of the favorable ALOC determination. This is the critical difference between a reversed denial (retroactive) and a sustained-then-cured denial (prospective).

Effect on subsequent WIGI waiting periods

Under 5 CFR 531.413, a sustained WIGI denial affects the waiting period for the subsequent WIGI. The waiting period for the next step increase runs from the effective date of the delayed WIGI, not from the original denial date. Practical example: an employee scheduled for a Step 4-to-5 WIGI in January 2026 receives a denial. The denial is sustained. The employee improves and receives the delayed WIGI to Step 5 in July 2026. The waiting period for the Step 5-to-6 WIGI (104 weeks for steps 4–6) runs from July 2026, not January 2026 — pushing the Step 5-to-6 WIGI to July 2028 rather than January 2028. One sustained denial thus delays future pay progression by the length of the delay.

Reversed denial — retroactive WIGI and back pay

Under 5 CFR 531.411 and the Back Pay Act (5 U.S.C. 5596), a reversed WIGI denial results in:

• Retroactive WIGI effective to the original scheduled date
• Back pay for the difference between the prior step rate and the new step rate, for all pay periods from the original WIGI effective date through the date of reversal
• Interest on the back pay in some circumstances
• Correction of personnel records (SF-50 amendment) to reflect the corrected pay history
• No effect on subsequent WIGI waiting periods — those run from the original retroactive WIGI date

Multiple consecutive denials

An employee who receives multiple consecutive WIGI denials experiences compounding delay. Two denials over two WIGI cycles can push the next pay progression out by 2–3 years. Employees facing a pattern of denials should evaluate whether the underlying performance issues are best addressed through:

• Intensive effort to meet the stated performance standards
• Requesting reasonable accommodation if a disability is involved
• Lateral transfer to a different position or supervisor
• Union intervention if a bargaining unit employee
• EEO complaint if discrimination is involved
• Whistleblower complaint to OSC if retaliation is involved

See Career & Pay Topic 11 on Lateral Transfers for transfer strategies and Workplace Topic 05 on Whistleblower Protections for retaliation remedies.

Section VIII Frequently asked questions