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Appropriations for the Salary Increase Allocation for Certain State Positions

FPP A.009

Frequently Asked Questions

How is the amount of the increase calculated for existing eligible employees?

The 5 percent or $250 per month increase is built into the maximum amounts for the salary schedules for July and August of fiscal 2023, and for fiscal 2024 and fiscal 2025. For CAPPS Central agencies, CAPPS will apply the increase automatically on July 1, 2023, and Sept. 1, 2024. Other agencies and institutions, including CAPPS Hub agencies, must calculate and apply the increase themselves for eligible employees.

Fiscal 2023

For eligible employees hired before July 1, 2023, the salary increase for July and August 2023 is 5 percent of the employee’s salary as of June 30, 2023. The minimum increase for this period is $250 per month.

Fiscal 2024

For eligible employees hired before July 1, 2023, the salary increase for fiscal 2024 is 5 percent of the employee’s salary as of Aug. 31, 2023, but not including the 5 percent salary increase from July and August 2023. The minimum increase for this period is $250 per month. This means there is no additional 5 percent or $250 minimum increase effective Sept. 1, 2023. All other salary actions (merit increases, promotion, demotion, etc.) that adjust an employee’s base salary from July and August 2023 will be included in calculating the increase.

Fiscal 2025

For eligible employees hired before Sept. 1, 2024, the salary increase for fiscal 2025 is 5 percent of the employee’s salary as of Aug. 31, 2024. The minimum increase for this period is $250 per month.

The 5 percent salary increase for fiscal 2025 will include all salary actions (the 5 percent increase for 2024, merit increases, promotion, demotion, etc.) that adjust an employee’s base salary from fiscal 2024.

How is the amount of the increase calculated for newly hired eligible employees?

The 5 percent increase is built into the maximum amounts in the salary schedules for July and August of fiscal 2023, per SB 30, and for fiscal 2024 and fiscal 2025, per HB 1. Both bills authorize a salary increase for all employee positions of state agencies paid according to Classification Salary Schedules A, B and C for included agencies.

Fiscal 2023 and 2024

For eligible employees hired during July and August 2023 and in fiscal 2024, agencies are allowed to use the funding appropriated for the increase for the portion of the new hire’s salary that can be attributed to the 5 percent salary increase. The minimum increase for this period is $250 per month.

Note: Employees hired during July and August 2023 and in fiscal 2024 are considered existing employees for the purpose of calculating the increase for fiscal 2025.

Fiscal 2025

For eligible employees hired during fiscal 2025, agencies are allowed to use the funding appropriated for the increase for the portion of the new hire’s salary that can be attributed to the 5 percent salary increase. The minimum increase for this period is $250 per month.

How many salary increases will employees receive?

Eligible employees will receive two 5 percent or $250 per month increases. HB1 provides increases for Sept. 1, 2023, and Sept. 1, 2024. SB 30 begins the increase on July 1, 2023, but the SB 30 increase may not be considered when determining the increase for Sept. 1, 2023.

How is the amount of the increase calculated for employees that work only part of a month?

For eligible employees working only part of a month, the increase is prorated for the month and is proportional to the percentage of the employee’s base salary that was paid for the month.

Are there any limitations on using the salary increase funding provided in SB 30 and HB 1?

If a position’s salary was already increased to a minimum of 5 percent or $250 per month, and the position experiences turnover, agencies may not use this legislative salary increase funding to further increase the salary for the position.

Can the salary increase funding be used for lump-sum payments for vacation time?

Agencies are allowed to use salary increase funding for part of a lump-sum payment for vacation time for eligible employees who have separated from state employment, but only for the part that can be attributed to the salary increase. See Lump-Sum Payment of Accrued Vacation Time for more information.

Can the salary increase funding be used for the required ERS/TRS surcharge imposed on certain return-to-work retirees?

Agencies are allowed to use salary increase funding to pay part of the surcharge paid to ERS or TRS for certain return-to-work retirees, but only for the part that can be attributed to the salary increase. See Retired State Employees Who Resume State Employment for more information.