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Pay increases retroactive to July 1


The budget bill passed by the state legislature includes a pay raise for SPA and EPA employees. Known as the Legislative Salary Increase (LSI), the raise of $625 for SPA employees was included in the Oct. 5 paychecks and was retroactive to July 1.

This increase was not a bonus payment to SPA employees. The LSI raised the state's SPA salary schedule by $625 at both the minimum and the maximum of each salary grade. All SPA permanent employees received the same amount as an increase to their salary for the fiscal year (exceptions are noted below).

For SPA permanent employees, this increase was not tied to performance ratings, and active disciplinary actions do not affect it. Persons in probationary, trainee and time-limited appointments also received the increase, as did those employees whose salaries are flat-rated. The LSI was based on the funding source or sources in place as of June 30.

Exceptions to the increase are:

* Part-time employees will receive a pro-rata amount of the $625 increase based on the number of hours worked per week.

* Employees currently at the maximum of their salary grades will move to the new maximum, and thus will receive a $625 increase to their base pay.

* Employees whose salaries are currently $625 or more above the current salary grade maximum will receive $625 as a one-time payment, not as an increase to their base pay.

* Employees whose salaries are currently less than $625 above the current salary grade maximum will receive an increase to their base pay up to the new maximum of their salary grade. Any remaining money from the $625 increase will be paid as a one-time payment, not as an increase to their base pay.

* Employees on Leave Without Pay (LWOP) as of July 1, will receive the increase prospectively upon reinstatement.

This increase does not apply to employees hired effective on or after July 1. It also does not apply to anyone who separated from state service before July 1. Employees hired on or after July 1 whose salaries would now fall below the new minimum of their salary ranges will have their salaries raised to meet the new minimum. But they will not receive any remaining balance, if any, of the $625.

The new state minimum hourly rate is $8.15. The hourly rate for temporary employees may increase at the department's discretion. Tar Heel Temps will be increasing their minimum hourly rate to $8.51.

The two continuing resolutions that the legislature passed in July and August imposed a freeze on all proposed salary increases on or after Aug. 1. The new budget act has lifted that freeze.

Chancellor James Moeser has determined that pending salary increases may be made retroactive. Affected actions include in-range salary adjustments and promotions. The calculations for these salary changes will be made based upon the new July 1 salary that includes the LSI.

Effective dates for these increases will depend upon the specific actions. The appropriate departments in the Office of Human Resources will complete the actions that have been held. It is anticipated that these actions will be reflected in the Oct. 19 paychecks.


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