3 Percent Bonus Coming

Just in time for the holidays, many staff and faculty around Grounds will be seeing a 3 percent bonus, due in staff paychecks on Nov. 23 and in faculty monthly paychecks Dec. 1. A total of $16.7 million will be spent on the bonuses, with 14 percent of that coming from the state.  

Academic Division employees hired before April 1 are eligible.

In its annual budget process, the state appropriates one-third of salary funding for employees who are considered 100 percent state-funded, and tuition provides the other two-thirds. This applies to bonuses as well as to salary increases.

For employees who are not state-funded, the University is funding the bonuses from the same sources that the employee’s regular paycheck is paid: a combination of tuition, federal and private grants and contracts, sales and services, gifts, and the endowment. 

For example, if an employee’s salary is funded through grants and contracts, those grants or contracts pay for the bonus. For employees of auxiliary services, such as the U.Va. Bookstore or Parking & Transportation, bonuses are funded through the auxiliary’s operating budget.

“It’s an important part of budgeting across schools and departments,” said Melody Bianchetto, assistant vice president for budget and financial planning. “Those administrators have to manage carefully so that they are prepared to meet the University’s obligation when mandates like the bonus come along.

“What many people don’t realize is that there are quite a few employees at the University who are not state-funded, either in whole or in part,” she said. “The University makes good on raises and bonuses for those employees regardless of the funding source for their salaries. We disburse the state-funded portion to schools and units, which make up the rest themselves.”

Analysis indicates that typically, lower paid employees benefit by having bonus payments included and taxed with regular pay, and higher paid employees benefit from separate checks taxed at a flat rate. To accommodate those who need it the most, the bonus payment will be included and taxed with regular pay.

Not eligible for the bonus are temporary, wage and student workers, including graduate research assistants and graduate teaching assistants. In addition, individuals without performance reviews on file as of Sept. 30, and those with active written notices of official discipline as of Nov. 18 will not receive the bonus.

Media Contact

Alexandra Rebhorn

Office of the Provost