Central funding to address pay issues will continue for another year

The university will allocate $11.5 million in central campus funding to provide faculty and staff pay adjustments in 2018–19. This is a continuation of funding initiatives that provided some ability to address pressing compensation issues for faculty and staff in 2017–18.

The block grant, discretionary compensation fund (DCF), and performance bonus fund will all be continued in the 2018–2019 fiscal year. These initiatives allocate central funding to provide pay increases for exceptional performance, market deficiencies (including retention), and equity issues.

Schools, colleges, and divisions are being strongly encouraged to supplement the $11.5 million in central funding with funding of their own at a time when UW–Madison continues to trail its peers in faculty and staff compensation. Supplemental funding was important in 2017–18, adding $21 million to the allocated $11.5 million and resulting in more faculty and staff receiving pay increases.

“We are pleased to announce this additional funding to invest in our faculty and staff,” says Laurent Heller, vice chancellor for finance and administration. “They are the drivers behind all the things we do that make us a world-class university.”

The central compensation funds also will supplement the general pay increases totaling 4 percent that were announced in January 2018. The first 2 percent increase took effect in July 2018 and the second 2 percent will take effect in January 2019.

Another upcoming compensation change affecting University Staff will be an increase in the living wage standard from $13.01 to $13.27 per hour. UW–Madison follows the City of Madison living wage standard, and is committed to paying a living wage to all University Staff in hourly positions. Eligible employees will receive this increase effective December 23, 2018.