Budgeting salaries and benefits
Salaries and benefits are a large and complex part of your budget. Stay on top of policies and updates with these guidelines. If you have questions, please email Patti Quimby pquimby@iu.edu for additional help.
Salaries and benefits are a large and complex part of your budget. Stay on top of policies and updates with these guidelines. If you have questions, please email Patti Quimby pquimby@iu.edu for additional help.
The salary and wage policy for fiscal year 2023-24 provides salary and wage setting guidelines which support the objective of optimizing the university’s ability to continue to attract and retain outstanding faculty and staff talent.
The salary and wage policy is predicated on an overall budget framework WITHOUT structural deficits.
2023-2024 Policy
A list of includable reason codes is provided below. An employee receiving no increase, or less than a 3% increase due to one of the reasons listed below must be assigned the corresponding code in budget construction. The use of these codes will NOT exclude an increase from the salary average increase calculation:
Code | Description |
---|---|
MID | Employee received off-cycle increase during the current fiscal year resulting in no 7/1 increase or a reduced increase %. |
NEW | Academic, Exempt staff and non-union non-exempt new hire resulting in no 7/1 increase or a reduced increase %. |
PER | Less than satisfactory performance, which should be documented by a performance improvement plan or other corrective action in the current fiscal year or within the previous 12 months, resulting in no or reduced increase. |
TER | Employee will terminate or retire during the upcoming fiscal year and should not receive an increase. |
The policy provides an exception for individuals excluded from the average for the following reasons ONLY (please code for exclusion every funding line with the reason code and calculated amount of exclusion):
Code | Description |
---|---|
EQU | Affirmative Action approved increases. |
INT | Employee salary increases mandated by the Department of Labor. |
MAR | Market adjustments for faculty that have fallen behind in base salary as compared to similar positions on campus and/or in the market. External market data must be provided. VPFAA will forward supporting documentation to the BL Finance Office. |
MYR | Written agreement completed prior to May 12 that includes a salary increase requirement for the upcoming fiscal year. Please provide a copy of the individual’s agreement. VPFAA will forward to the BL Finance Office. |
NTN | Newly tenured faculty. |
PRO | Faculty receiving promotion in rank or newly named as Distinguished Professors. |
RET | Retention High Value – High Value increases to proactively reward high performing individuals in their current positions.
|
NOTE: Faculty with the exclusion code of NTN or PRO should receive the salary policy increase established for the campus, and the standard increase associated with the exclusion. The total amount will be entered into the request field and the exclusion amount entered into the reason code amount field.
Code | Description |
---|---|
EQU | Affirmative Action approved increases. |
FYS | Fiscal year supplement is required for Non-Exempt staff above the maximum salary range. This reason code may also be used for exempt employees above the maximum of the salary range or other non-union employees who are receiving compensation well above their position requirements for the salary range. For exempt staff, please reach to IUHR Compensation hrcomp@iu.edu for instructions on processing the supplement. Use object code 3100. |
HLR | Staff position duties have substantially changed within level and the position now has a sustained increase in responsibility during the current fiscal year. In addition:
|
INT | Employee salary increases mandated by the Department of Labor. |
MAR | Market adjustments for employees that have fallen behind in base salary as compared to similar positions on campus and/or in the market. External market data must be provided to and approved by IUHR Compensation. Submit the request and supporting documentation to IUHR Compensation hrcomp@iu.edu by April 28. |
MYR | Written agreements completed prior to May 12 that include a salary increase requirement for the upcoming fiscal year. Please provide a copy of the individual’s agreement to IUHR Compensation hrcomp@iu.edu. |
CAR | Staff either (a) progressed to a higher career level, or (b) promoted to a different position of a higher career level effective 7/1 of the upcoming fiscal year. Submit the request and supporting documentation to IUHR Compensation hrcomp@iu.edu by April 28. |
RNG | Employee’s base pay increase to meet the minimum of the pay range for their position’s classification. |
RET | Retention High Value – High Value increases to proactively reward high performing individuals in their current positions.
|
Employees with Base Rates Less Than $31,200
A full-time equivalent rate will be calculated for part-time appointed employees and their salaries will be pro rata.
Non-exempt Staff Represented by Unions
Non-exempt staff covered by a union (i.e. AFSCME Service, AFSCME Police, IATSE and CWA), the salary increase pool available for distribution shall be calculated based on the following:
The salary increase pools for employees represented by unions will provide for an overall average of 3% in FY2024.
Salary statistics by RC are calculated independently within three employee classifications: Academic (Object Code 2000), Exempt/Non-Exempt Staff (Object Code 2400 & 2480), and Non-Exempt Non-Union (Object Code 2500). Sharing of salary increase pools between employee classifications is not permitted.
The lack of a percentage maximum does not guarantee campus or university approval of proposed salary or wage increases. Units must be able to justify large increases, no increase, or salary and wage decreases for individual employees. All increases should be covered by existing unit budgets. Resulting salaries and wages should be commensurate with those of similar job ranking across the university. Provide justification for increases exceeding 8%.
As always, please do not share salary and wage recommendations with employees prior to Trustee approval of the budget.
All supporting documentation should be submitted by Friday, April 28, 2023.
UNN Reason Code
During Budget Construction the union salaries will be set to the salary policy of zero percent.
Using Reason Codes in Budget Construction
When coding an employee’s request line with a reason code, every funding line must contain the same reason code and the amount associated with the reason for that funding line.
Budgeting Limited Term Full Time Staff Appointments
Budgeting Academic Leaves of Absence
Budgeting Vacant Faculty Positions for Administrative Faculty
Budgeting Appointment Changes Effective with the New Fiscal/Academic Year
Budgeting Salary Savings and Reserves
Salary Exception Reason Code Amount
If you have questions, please contact Patti Quimby pquimby@iu.edu.
Group | Code | Percentage |
Academic - Exempt | 2000, 2005, 2008, 2280, 2288 | 40.56% |
Academic - Summer | 2010 | 29.37% |
Academic - Overload/Supplement/Residents/ Non-Students | 2170, 2200, 2290 & 2300–2310 | 6.55% |
Professional - Exempt & Non-exempt | 2400, 2405, 2408, 2480, 2488 | 40.56% |
Professional - Overload/Terminal Pay | 2420, 2428, 2450 | 6.55% |
Non-exempt - PERF & Retirement Savings Eligible | 2500, 2504 | 40.43% |
Non-exempt - Terminal Pay | 2550 | 17.61% |
Temporary | 3000, 3150, 3250 | 6.55% |
Temporary | 3050, 3100, 3200, 3205, 3210 | 17.61% |
Supplemental | 4580, 4588 | 6.56% |
*See “Employee Benefit Calculation Percentages” document.
All stipends for cell phones or home internet connections ended on June 30th, 2020 (unless required by law, external compliance or contract).
The NIH Office of Personnel Management released new salary levels for the Executive Pay Scale and effective January 12, 2023, the salary limitation for Executive Level II is $212,100 (up from 203,700). NIH issued this guidance and has updated the Salary Cap Summary site. The Academic 10-month salary limitation increased to $176,750 (up from $169,750).
Academic Summer Pay is subject to the same rate as the Academic Year Salary. Review the guidance at NIH Salary Cap. Please contact Rayna Amerine ramerine@iu.edu if you have any questions.
In budget construction, these salaries will be set according to salary policy. The hourly rate is the basis for calculating increases for all employees that are paid bi-weekly. Bi-weekly employees should have the same hourly rate regardless of the number of account lines. Employees can have different hourly rates only if they are paid from more than one position number. Budget union employees at their current rate in the FY2024 request. Then budget the funds needed to cover the 3% increase (and any additional funds needed) in 2504.
If you have any questions, please contact Patti Quimby pquimby@iu.edu.