- A rate is equivalent to a pay grade. The Navy recognizes nine rates, E-1 through E-9. An E-1 is a seaman recruit, and an E-9 is a master chief petty officer of the Navy. A seaman recruit is a newly inducted member of the service; sailors at E-4 (petty officer third class) and higher are considered noncommissioned officers and provide the bulk of leadership for enlisted personnel.
- Most enlisted sailors have an occupational specialty, which is designated on their uniforms through a rating badge. Sailors in grades E-4 and higher wear the rating badge, and each occupational specialty includes a unique iconic image that its members wear.
- Commissioned officers have rank instead of rate. There are 11 grades of officer, ranging from O-1 (ensign) to O-11 (fleet admiral), although there have been no 5-star fleet admirals since World War II. Line officers--those in normal duty, as opposed to staff officers who have some professional skill like medicine or dentistry--wear their rank insignia in different ways depending their uniform type (dress versus working khakis).
- According to the Navy, staff officers "are specialists in career fields which are professions unto themselves, such as physicians, lawyers, civil engineers, etc." These officers have special badges that replace the normal star that appears on a line officer's rank insignia.
- An enlisted sailor who rises through the ranks and is entrusted with additional duties, but does not join the line officer corps, is called a warrant officer. There are five grades of warrant officer, and they wear insignia in a similar manner to commissioned officers. In addition, limited-duty officers have advanced through the ranks to share in the responsibilities of staff officers, without receiving an officer's commission.
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