Sent on behalf of Brent Goldberg, Vice Chancellor for Finance and Administration:

Members of the campus community,

As you may know, the University of Tennessee Board of Trustees approved the UTC budget for the upcoming fiscal year at its annual meeting earlier today. UTC’s budget accounts for a salary increase plan in the new fiscal year that begins July 1 to recognize our dedicated faculty and staff and make progress toward remaining market-competitive in employee compensation.

4% Market-Merit Increase

The plan calls for a 4% market-merit pay increase to base salaries for all eligible employees who are regular staff or faculty, as well as an increase in the minimum pay rate to $15.00/hour for regular staff. Eligibility for the 4% increase requires a record of satisfactory work performance without being under active discipline and having been employed as of June 30, 2023. 

Eligible increases will be processed in July with a retroactive effective date of July 1, except for nine-month faculty and flex-year staff whose increases will be effective Aug. 1. 

Tenured, Tenure-Track and Non-Tenure Track Faculty Promotions

A funding pool has been established to implement increases to the base annual salary associated with promotions for the 2023-2024 academic year for regular tenured, tenure-track or non-tenure track faculty. Increase amounts will be based on promotion criteria established for tenured, tenure-track and non-tenure track faculty. Approved increases will be effective July 1 for 12-month faculty and August 1 for nine-month faculty. 

UC Foundation Professorship Rollover Pool

Each UC Foundation Professorship award carries with it a $2,500 increase to salary with costs shared annually by the University and UC Foundation. A funding pool will be available as of July 1 to implement rollovers to the base annual salary associated with UC Foundation Professorships for the 2023-2024 academic year.

Increase to Minimum Hourly Rate

As outlined above, the minimum hourly rate for regular staff positions will be increased from $13.00 to $15.00/hour. The new minimum hourly rate of $15.00 for regular staff will be effective July 1, or August 1 for regular flex-year staff, and the 4% market-merit adjustments will then be applied to the new minimum hourly rate. All regular staff hires after that date will be paid a minimum hourly rate of $15.00. 

Temporary and student employees will not be impacted by the new minimum hourly rate and will continue to be compensated at the required federal minimum wage rate of $7.25/hour or an appropriate rate based on work performed. Campus administrators are encouraged to identify opportunities to advance student and temporary employee hourly rates as funding permits. 

Regular Staff Compression Increases

A limited funding pool has been established to implement increases to address compression adjustments for positions allocated to Market Ranges 1-9 as a result of increasing the minimum hourly rate for regular staff to $15.00. Approved increases will be implemented in July with a July 1 effective date for regular staff and an August 1 effective date for regular flex-year staff. The 4% market-merit increase will then be applied to the new compression rate for all regular staff on payroll as of June 30, 2023, and deemed eligible for the increase.