5.07 Rates of Pay is the term used to describe the wages and salaries paid to individuals in the public sector. This includes employees of the federal government, state governments, and local governments. The rates of pay are set by the government and are based on the employee’s skills, experience, and job classification. Generally, the rates of pay are based on the government’s approved pay scales. There are several types of 5.07 Rates of Pay, including general schedule (GS) pay, wage grade (WE) pay, executive schedule (ES) pay, and senior executive service (SES) pay. General schedule (GS) pay is the most common type and is based on a 15-grade system with 10 steps within each grade. Wage grade (WE) pay is used to determine the pay of blue-collar workers, such as those in the trades and crafts. Executive schedule (ES) pay is used to determine the pay of senior-level government officials, such as cabinet secretaries and agency heads. Finally, senior executive service (SES) pay is used to determine the pay of SES-level employees, such as agency directors and assistant secretaries.