707: Merit Increases

Statement, Philosophy and Procedures

The University has adopted a pay for performance program as part of the overall compensation program. Merit pay is one of the methods the University uses to reward successful job performance.   The existence and amount of funds available to be distributed in the form of merit increases shall be determined annually by Financial Affairs in a manner equitable to each campus. If awarded, Merit increases shall be awarded based on employee performance and typically awarded on July 1 after completion of the annual performance review process.

The provisions of this Section do not apply to Union represented employees.  All pay increases for Union represented employees are governed by the terms of the applicable collective bargaining agreement.

Merit Increase Eligibility  
In general, employees, hired or re-employed prior to March 1, who have been good performers, contributed to the department’s goals, and have met or exceeded their individual performance goals are eligible to be considered for a merit increase. For most non-probationary employees the effective date of the annual increase is the payroll start date closest to July 1. Employees on probation as a new hire, rehire, promoted, transferred or demoted employee prior to March 1 who remain on probation are eligible for a merit increase; however, any merit increase for such employees will not become effective until after they have successfully completed their probationary period (without any retroactive effect). Employees hired, re-employed, promoted, transferred or demoted on or after March 1, are not eligible for a merit increase. For employees hired, re- employed, promoted, transferred or demoted on or after March 1, the starting salary in the new position should take into account that the employee will not be eligible for a merit increase until July of the following calendar year. 

With VP-level and Finance approval, any employee may receive a bonus in lieu of a merit increase. Any such bonus may not exceed available merit pool funds.

The merit guidelines set forth in this policy must be applied regardless of the position’s funding source. The University has a responsibility to ensure that all its employees are fairly and consistently compensated, as well as a duty to outside granting agencies to ensure we oversee the equitable, responsible, and reasonable distribution of their funds in accordance with established University policy.  


Departments must administer the University’s merit increases policy and follow the procedures outlined above.


Contact the appropriate Client Services Partner if you have questions about this policy or if you would like more information.  Contact the Campus CFO if you have questions about the merit pool for your Campus.