Compensation and Annual Employee Increases

Frequently Asked Questions (FAQ’s)

Below are a few examples of how annual compensation increases are calculated for different types of employees, based on the FY2026 plan components outlined above.

How are base rates determined for calculating increases?

Every employee is paid an annual salary or an hourly rate. An employee’s base pay is the rate used to determine the FY2026 annual increase, based on the plan components described above. The rate used to calculate an employee’s increase will be the current base rate as of the relevant implementation date for their employee category. Administrative stipends, interim salary rates, and/or other temporary adjustments in pay will not be factored in when calculating a base rate of pay.

Why isn’t there a market-based component to this year’s CEC increases?

Following legislative approval and DHR/DFM guidance for the distribution of CEC funds for FY2026, state agencies and institutions were required to use the matrix provided based on $1.05 - $1.55 per hour based solely on an employee’s performance rating.

Are Information Technology staff receiving additional increases?

The State legislature recommended a 4.5% increase for specific IT/Engineering positions and Nursing/Healthcare positions for specific agencies. However, ISU only received funding from the State to cover the merit-based component of the plan, and did not receive funding for additional increases for IT/Engineering or Nursing/Healthcare positions. The University is prepared to broadly review this along with other strategic compensation needs and priorities across the institution following CEC implementation as budgets and priorities allow.

How is ISU addressing market compression for faculty?

Following the CEC implementation for FY2026, Human Resources will be working collaboratively with Academic Affairs and Finance to review faculty compensation data, along with other strategic compensation needs, to determine recommendations and priorities to be addressed as budgets allow.

If an employee is below the FY2026 minimum salary rate and eligible for other components of the annual increases, will they receive their minimum increase on top of the other increases?

No, the FY2026 CEC state guidance directed that if an employee's pay rate falls below the new minimum rate of their applicable pay grade after application of the merit-based component, they will be raised to the new minimum. 

Classified Staff Example: Benny Bengal is a full-time classified staff member within pay grade J. Benny’s current rate is $20.08/hr. Benny received a Meets Expectations performance rating on their 2024 evaluation, which adds $1.05/hr to their hourly rate. The new pay structure minimum for pay grade H is $21.25/hr, so they will receive an additional $0.12/hr bringing them to the new minimum. Thus, their new FY2026 pay rate will be $21.25/hr:

Current rate $20.08/hr + Performance based increase $1.05/hr + Minimum increase of $0.12/hr = Final Rate $21.25/hr

Non-Classified Staff Example: Jordan Doe is a full-time non-classified staff member. Jordan’s current annual salary is $46,050. Jordan received an Exceeds Expectations performance rating on their 2024 evaluation, which adds $1.30/hr or $2,184 annually to their salary ($1.30 x 2080 hours = $2,184). The new non-classified minimum annual salary is $49,750, so they will receive an additional $1,516 to their annual salary bringing them to the new minimum. Thus, their new FY2026 annual salary will be $49,750:

Current salary $46,050 + Performance based increase $1.30/hr ($2,184/annual) + Minimum increase of $1,516/annual = Final Rate $21.25/hr

How do I know what pay grade I’m in?

Classified employee positions are defined by the state’s classification specifications and are assigned a pay grade. Please refer to ISU’s Classified Pay Structure for FY2026 to identify your Job Title and corresponding pay grade. If you still have questions regarding your classified pay grade, please contact your supervisor or send an email to compensation@isu.edu.

I have completed my self-evaluation, but have not received a final rating from my supervisor yet. Will I still receive my raise on time?

Employees who do not have a completed 2024 performance evaluation before the relevant implementation dates, will begin to receive their performance-based increase effective the first day of the pay period following the completion of the evaluation.

How does CEC impact positions whose salaries are covered by grant or local funds?

ISU receives CEC funding for salaries on special appropriations (Career Technical Education, Family Medicine, Idaho Dental Education Program, and Idaho Museum of Natural History) and approximately 72% of salaries on central funds. This funding from the state covers only 59% of total CEC costs for the university.

ISU must cover the remainder of CEC increases through a combination of tuition and fees, professional fees, auxiliary revenues, grant funds, and other revenue sources. As units prepared their FY2026 budgets for local, auxiliary, and grant funds, revenues were identified to plan for the legislative merit-based CEC recommended increase for positions.