Salary & Benefits

1. Salary & Wage Policy Fiscal Year 2025 – All Fund Groups

The salary and wage policy for FY25 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.

FY25 Policy

• Each RC average base salary increase pool is approved at 3% for continuing faculty and staff:
  • The maximum salary increase pool is 3%, and the allocation of that pool is at the discretion of the RC. RC allocation procedures must comply the University salary policy and excludes non-exempt staff represented by a union.
  • The minimum salary increase is 1%, and in the event no salary increase is provided, units should provide an includable reason code (noted below).
• Increases above 8% without one of the exception codes noted in this policy should be sent to the appropriate office:
  • Exceptions for faculty will need approval from VPFAA (apps@iu.edu) prior to submission for campus approval.
  • Exceptions for staff will need approval from IUHR (hrcomp@iu.edu) prior to submission for campus approval (IUHR Comp will submit for Vice Provost for Finance & EVP & Provost approval). These increases will be approved by the Executive Vice President & Provost prior to being reviewed by the Vice President for Human Resources and the Executive Vice President for Finance & Administration.
  • The BL Finance Office will obtain exception requests and documentation from HR and VPFAA.

A list of includable reason codes is provided below. An employee receiving no increase, or less than a 1% 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:

The policy provides an exception for individuals excluded from the average for the following reasons ONLY (please code every funding line for exclusion with the same reason code and calculated amount of the exclusion):

NOTE on Academic Appointments: 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 in the request field and the exclusion amount entered in the reason code amount field.

Effective with the FY2025 budget construction process, all RCs will be required to submit a rating for each academic appointee based on a scale internal to the RC. Please also provide an explanation of the process used and how each level of the rating scale should be interpreted. Please submit ratings for all academic personnel and excludable increase requests in an Excel format to VPFAA (apps@iu.edu).

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 FY25.

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 over 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 Saturday, April 27, 2024.

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.

3. Employee Benefit Rates for FY 2024—All Fund Groups

Note: see Employee Benefit Calculation Percentages for additional details.

5. NIH Salary Limitation for Grants and Cooperative Agreements

The NIH Office of Personnel Management released new salary levels for the Executive Pay Scale and effective January 29, 2024, the salary limitation for Executive Level II is $221,900 (up from 212,100). NIH issued this guidance and has updated the Salary Cap Summary site.
 
Academic Summer Pay is subject to the same rate as the Academic Year Salary. Review guidance at NIH Salary Cap. Please contact Rayna Amerine ramerine@iu.edu with questions.