Merit Pay Programs

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.

3.85% Merit Increase Pool Recommended to Board of Regents for Fiscal Year 2023

Mindful of budget constraints, the University of Minnesota is incorporating a 3.85% merit increase pool in the President's recommended operating budget for fiscal year 2023. How this merit pool is distributed will be decided by each campus or collegiate or administrative unit. The President's recommended budget, including the proposed merit increase, will be brought for Board of Regents review in May and action in June. The budget, and therefore the merit pool, is not finalized until approved by the Board of Regents and may change.

For fiscal year 2023, the University is returning to its standard practice of linking the merit pool award to performance. 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. The increases employees receive will vary based on their performance.

The annual increase process should be completed by the end of fiscal year 2022, and salary increases should be reflected in the new base pay rates for fiscal year 2023.

Any merit increase approved by the Board will apply 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)
  • Graduate assistants

These merit increases do not apply to:

  • Employees covered by collective bargaining agreements. These groups have compensation plans negotiated into their collective bargaining agreements.