Annual Salary Increase Pay Practices

Budget year salary decisions will always be guided by individual performance and the relationship to the market range and median zone for the job classification.   As part of the annual salary policy, University Human Resources will provide guidance on salary increases regarding different levels of performance and relationships with the median zones, within the context of the current year salary budget. The University also allows the flexibility to grant a lump sum payment that is in lieu of or in addition to a base salary increase. Salary decisions are effective on July 1st for Health Care Faculty and P&S Staff, all SEIU staff and all Merit staff.  Salary decisions are effective on January 1 for Faculty and P&S Staff who aren’t funded by Health Care.  The effective date and budget procedures are determined by funding source.

The practices described below would be applied in relation to the salary policy for any given budget year.  Nothing herein guarantees any specific salary increase, but is intended to reflect the anticipated practices under the Compensation and Classification System. For compliance purposes, funds 500 and 510 cannot be used to fund lump sum payments related to salary policy.

If current salary is within median zone:

  • Eligible for base salary adjustment and/or lump sum payment on July 1st or January 1st that is consistent with performance and fiscal year salary policy.

If current salary is above the median zone, but within market range:

  • Eligible for base salary adjustment and/or lump sum payment on July 1st or January 1st that is consistent with performance and fiscal year salary policy.

If current salary is below the median zone, but within market range:

  • Eligible for base salary adjustment and/or lump sum payment on July 1st or January 1st that is consistent with performance and fiscal year salary policy. A long-term goal is to give additional consideration and resources to individuals who are fully proficient in the full range of their responsibilities, to the extent that funding resources allow. 

If current salary is above the market range maximum:

  • Eligible for over range performance payment (non-base lump sum) consistent with fiscal year salary policy.       
  • Eligible for base salary adjustment if there is documentation of compelling market conditions based upon an analysis by University Human Resources, consistent with performance and fiscal year salary policy.

If there is a record of discipline and/or a Performance Improvement Plan (PIP) in place within the prior twelve (12) month period:

  • May be eligible for lesser base salary adjustment and/or lump sum payment on July 1st or January 1st that is consistent with fiscal year salary policy if the individual has demonstrated sustained improvement. The increase would be less than the increase and/or lump sum payment for employees with fully competent performance. 
  • Not eligible for base salary adjustment or lump sum payment if the individual has not demonstrated sustained improvement.

If a classification has been placed in Pay Level 9 or 10, regardless of an individual’s current salary level:  

  • Eligible for base salary adjustment and/or lump sum payment on July 1st or January 1st per P&S new fiscal year salary policy, consistent with performance and job specific market data.

Fiscal Year Salary Policy Guidelines for Employees Who Were Recently Hired or Transferred Into a New Position:

  • Employees hired less than 2 months prior to a college/division budget increase date are not eligible for a fiscal year salary increase or lump sum payment.
  • Employees hired 2-6 months prior to a college/division budget increase date will be eligible for a fiscal year salary increase and/or lump sum payment, unless stated otherwise in their offer letter.
  • Employees hired more than 6 months prior to a college/division budget increase date are eligible for a fiscal year salary increase and/or lump sum payment.
  • Colleges and divisions will determine appropriate salary increase and/or lump sum payment based upon individual circumstances.

Lump Sum Payment Option Policies and Procedures:

  • All non-bargaining P&S employees are eligible to receive the P&S Lump Sum Salary Policy Payment.
  • Employees can receive no more than two payments per fiscal year.
  • Employees are eligible to receive both a base salary adjustment and a lump sum payment in the same fiscal year.
  • A rationale must be provided to University Human Resources for any lump sum payment that is above the percentage stated in the annual salary policy.
  • Lump sum payments are discretionary and should not be calculated based on quantity, quality or efficiency measures in the workplace. Questions on the appropriate use of lump sum payments should be directed to comp-class@uiowa.edu.