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Texas Payroll/Personnel Resource

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Non-Salary Payments
Financial Incentives – Wellness Programs


A state agency may develop a wellness program designed to increase work productivity and capacity and reduce health insurance costs. A state agency may allow employees to participate in certain wellness activities after establishing agency policy for participation and benefits. An agency may provide financial incentives for participation in the wellness program, if the agency has created a written policy with objective criteria for providing the incentives.

Eligible Employees

The agency will determine which employees are eligible for financial incentives based on the agency’s written policy and objective criteria.


Before an agency can make payments, it must notify the Comptroller that it has established an agency policy for providing financial incentives to eligible employees. The notification must include a copy of the wellness policy with objective criteria for awarding financial incentives, and confirmation that the agency has adopted the policy and is ready to pay financial incentives to eligible employees. The agency must send the notification to Payroll Policy in the Statewide Human Resources/Payroll Assistance Section, Fiscal Management Division of the Comptroller’s office.


Texas Government Code, Section 664.061 (a)(4)-(6); Section 664.053 (e).