Salaries and Wages. The Service shall compensate an employee according to: The Service's budget; and A salary structure that is developed by the Director and approved by the Board. The salary structure in §A(1)(b) of this regulation shall list the complete salary range of classes of positions and may include a pay plan and salary rules. Incentive Pay. The Director, with the approval of the Board, may establish an incentive pay plan. The Board shall approve all disbursement of incentive pay and shall determine the eligibility of Service employees to participate in an incentive pay plan. Salary Structure. The Service shall conduct salary reviews periodically and may recommend that the Board adjust the Service salary structure based on these reviews. Merit Increase Adjustment. Merit increases for individual employees shall be made on the basis of the annual performance appraisal and under guidelines approved by the Board.