Recognizing and rewarding high performance is a key presidential priority for driving excellence at the University. Merit pay is a compensation program where base pay increases are determined by individual performance, as opposed to across the board increases. Using merit pay criteria and having a plan are good ways for a department to reward high performance, an effort that is especially crucial as the University strives for excellence.
Colleges and units interested in a customized merit training for their management team should contact their OHR consultant.
3.0% Merit Increase Pool Approved by Board of Regents for Fiscal Year 2025
In June 2024, the Board of Regents approved the 3.0% merit increase pool recommended in the President's operating budget for fiscal year 2025. All faculty and staff not covered by a collective bargaining agreement should receive compensation increases based on individual merit, as opposed to all employees receiving an "across-the-board" increase. How this merit pool is distributed will be decided by each campus or collegiate or administrative unit. Any increases employees may receive will vary based on their performance.
Salary increases should be reflected in the new base pay rates for fiscal year 2025. The merit increase approved by the Board applies to these employee groups:
- Faculty in the 94xx job code series at U of M Morris, U of M Rochester, and U of M Twin Cities
- Academic Professional and Administrative (93xx, 96xx, and 97xx series)
- Civil Service
- Postdoctoral associates (9546)
The merit increase does not apply to employees covered by collective bargaining agreements. These groups have compensation plans negotiated into their collective bargaining agreements.