UNIVERSITY OF PITTSBURGH POLICY 07-09-01
SECTION: Salary Administration
SUBJECT: Salary Increase
EFFECTIVE DATE: September 16, 1994a
The University's total annual expenditure for compensation is a complex function of a
number of factors, including the number of faculty and staff; the relative number of faculty
and staff of different ranks or classifications, years of service, and status (e.g., full-time
and part-time); fringe benefit rates; and the size of annual salary increases.
Salaries at the time of initial hire are determined primarily by market factors. What follows
is a set of policy recommendations to provide a framework governing annual salary
increases for faculty and staff, to be applied within the Planning and Budgeting System
These recommendations provide some flexibility for particular units, within the context of
policy decisions made centrally. The size of the total pool of funds for increases and the
allocation of funds to particular responsibility centers are centrally determined. The
distribution of funds to individuals within each unit, however, is to a significant degree left
to local determination.
I. THE ANNUAL POOL OF FUNDS FOR SALARY INCREASES
Because faculty and staff are the University's most important resource, funding for
compensation must receive a very high priority in the University's planning and budgeting.
To assure competitiveness in attracting and retaining qualified and productive faculty, the
University has set a goal of ensuring that average faculty salaries at the Pittsburgh campus
are at or above the median (for each rank) of AAU universities; related goals have been
established for faculty at the regional campuses and for faculty librarians. The Staff
Classification and Pay Plan establishes salary ranges aimed at maintaining competitiveness
in attracting and retaining qualified and productive staff.
The size of the total pool of funds for salary increases is determined as part of the annual
operating budget by the Chancellor, with the active participation of the University Planning
and Budgeting Committee (UPBC), and subject to approval by the Board of Trustees.
The total pool for salary increases has the following four components: 1) maintenance of
real salary; 2) merit increases; 3) equity adjustments; and 4) market adjustments.
The portion of the total pool devoted to each of the four components is determined by the
Chancellor, with the active participation of the UPBC, in response to needs for each
purpose identified through the planning and budgeting system. The size of the total pool
for increases should be sufficiently large to provide adequate funds for all four purposes.
II. ALLOCATION OF SALARY INCREASE FUNDS TO RESPONSIBILITY CENTERS
Funds for salary increases are allocated to responsibility centers on a uniform percentage
basis for maintenance of real salary and for merit, and differentially for equity and market
increases, based on demonstrated needs, documented in accordance with procedures
established within the planning and budgeting system.
Maintenance of Real Salary
1. Each unit will be allocated funds from the total pool to ensure the maintenance of real
salary of each faculty or staff member performing satisfactorily.
2. The amount for maintenance of real salary allocated to each unit will be equal to the
salaries of all faculty and staff in that unit times the percentage of the previous calendar
year's increase in the Consumer Price Index (CPI-W). Any modification of this
percentage must be determined by the Chancellor, with the active participation of the
1. Each unit will be allocated funds from the merit component of the total pool, to assure
that every faculty or staff member whose performance is judged meritorious receives a
merit increase in salary.
2. The amount for merit increases allocated to each unit will be a set percentage (the
same for all units) times the salaries of all faculty and staff in that unit. The percentage
is determined by the Chancellor, with the active participation of the UPBC
1. A systematic analysis should be undertaken to determine where and to what extent
salary inequities exist (such as salary compression or differentials attributable solely
to gender, race, or other inappropriate factors), and funds should be allocated each
year to units where inequities are documented until they are removed.
2. Funds for equity adjustments to specific units are allocated by the Chancellor, with the
active participation of the UPBC, in response to needs identified through the systematic
analysis described above.
1. Funds from the market component of the total pool are allocated to specific units by
the Chancellor, with the active participation of the UPBC, on the basis of documented
needs. Consideration might be given, for example, to school and departmental
rankings in national salary profiles and to shifts in relative rankings of staff salaries in
income profiles for various professional and technical personnel, both in Pittsburgh
and in higher education generally.
2. A portion of the market component of the total pool will be placed in reserve for
discretionary use by the Provost or the appropriate senior vice chancellor, to retain
individual faculty and staff.
III. DISTRIBUTION OF SALARY INCREASES TO INDIVIDUALS WITHIN UNITS
The salary increase received by each individual will become part of his or her base
contract salary in subsequent years.
Maintenance of Real Salary
1. Each faculty or staff member performing satisfactorily will receive a percentage
increase of the size determined for that year for maintenance of real salary.
2. For faculty, satisfactory performance is defined as having fulfilled the "common
responsibilities" of faculty as articulated in the 1988 Handbook for Faculty: The role of
individual faculty members in supporting the mission of the University will depend on the
specific missions of their departments or schools. All faculty members, however, have
certain common responsibilities: to commit themselves fully to their teaching obligations,
to meet all of their classes as scheduled, to be available during specified office hours
for consultation with students, to evaluate student performance promptly and fairly, to
participate in the development of the programs of their departments and schools and
of the University as a whole, to engage in scholarly activities, and, as appropriate, to
support the University in its goal to render public service. (p. 42)
Criteria for satisfactory performance may be further specified for particular units, as
jointly determined by the faculty and the head of the unit through collegial processes
3. For staff, satisfactory performance is defined as an Overall Rating of "Meets
standards" on the Staff Performance Appraisal, indicating: "Work is fully satisfactory;
employee consistently meets and occasionally may exceed performance standards."
1. For faculty, judgments of relative merit within a department or school should be made
in accordance with explicit, written criteria and procedures determined jointly by the
faculty and the head of the unit. Criteria should reflect the specific mission of the unit,
and should recognize performance of high quality in teaching and service as well as
in scholarship or research.
2. For staff, meritorious performance is defined as an Overall Rating of "Often" or
"Consistently" "Beyond Standards," indicating: "Work performance often or
consistently exceeds performance standards."
3. A responsibility center may decide that promotion should be accompanied by a related
increase in salary, in addition to any other merit increase awarded in the year of
promotion. Each responsibility center must have explicit written policies regarding
promotion increases for faculty and staff.
1. Funds allocated to a unit for reasons of equity must be distributed among individuals in
such a way as to address appropriately the inequities identified.
1. Funds allocated to a unit for market considerations are distributed among individuals
at the discretion of the head of the unit.
IV. NOTIFICATION OF SALARY INCREASES
At the time of notification of salary for the coming year, each continuing faculty or staff
member will be informed in writing of the basis for his or her individual salary increase.
Persons whose performance has been judged unsatisfactory must be informed of the
specific reasons for that judgment.
V. RECONSIDERATION OF SALARY DECISIONS
Procedures should be developed within each responsibility center through which individual
faculty and staff members can request reconsideration of decisions related to aspects of
This policy applies to contract salaries of all full-time faculty and part-time tenure-stream
and tenured faculty, including faculty librarians, except for those in the School of Medicine,
and to all regular full-time and part-time staff not covered by collective bargaining
agreements. It does not include summer-term or overload payments paid to full-time
faculty, or salaries of part-time non-tenure-stream faculty or part-time faculty librarians.
The Senate Budget Policies Committee and the Staff Association Council, in consultation
with the Provost and the appropriate senior vice chancellor, will monitor the implementation
of this policy and report on that implementation annually to the University Senate and the
Staff Association Council.