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Salary Guidelines for 2006–2007

The University of Pennsylvania’s merit increase program is designed to recognize and reward faculty and staff by paying market competitive salaries. The merit increase pool for fiscal year 2007 is based on market trends, economic conditions and fiscal responsibility.  Salary increases should acknowledge the valuable contributions of faculty and staff while helping Penn to remain a strong and financially viable institution.  Given that raises are funded with School and Center resources, raises must recognize and maintain the fiscal health of each unit.  As such, the guidelines presented below represent the maximum that each unit can provide, recognizing that some units may need to administer a smaller aggregate pool for both faculty and staff.

Faculty Increase Guidelines

Presented below are the established standards for the fiscal year 2007 merit increase program. The deans are requested to adhere to this framework as they establish individual faculty guidelines for the department chairs based on available resources.

• The minimum academic salary for new assistant professors will be $52,750. Merit increases for faculty should be based on performance as evidenced in their scholarship, research, teaching and service to the University and the profession. As in previous years, there will be no minimum base increment for continuing faculty.

• The aggregated merit increase pool for faculty may not exceed 4.0 percent. The established parameters range from 0 to a maximum of 6.0 percent based on performance. Salary increase recommendations that are below 1.0 percent for non-meritorious performance must be made in consultation with the Provost.  Likewise, salary increases that exceed 6.0 percent due to market conditions must also be made in consultation with the Provost. Deans may wish to give careful consideration to salary adjustments for faculty who have a strong performance record but whose salary may have lagged behind the market.

Staff Increase Guidelines

The University’s salary ranges, including the IT ranges, have been increased effective April 1, 2006. All staff salaries must be at or above the minimum of their grade’s salary range effective April 1, 2006.

Presented below are the merit increase guidelines for July 1, 2006.

• Monthly, weekly and hourly paid staff are eligible for a merit increase if they are regular full-time, regular part-time or limited service status, and were employed by the University on or before February 28, 2006. The following groups are not covered under these guidelines:  student workers, interns, residents, occasional and temporary workers, staff on unpaid leave of absence, staff on long term disability, and University staff that are represented by a union.

• The merit increase program is designed to recognize and reward performance. The foundation of this program is the Performance and Staff Development Plan (performance appraisal) that documents the employee’s performance and contributions and establishes performance goals for the new fiscal year. All employees must receive a Performance and Staff Development Plan whether or not they receive a merit increase.  The Schools and Centers must submit performance appraisals by June 2, 2006.

• The merit increase pool for fiscal year 2007 is a maximum of 4.0 percent. At Penn, each responsibility center is responsible for funding its salary pool. Some Schools and Centers may not be able to fund a 4.0 percent pool this year. They may have a lower percentage merit increase pool based on financial constraints.

• For schools and centers that are able to provide a 4.0 percent salary pool, the following guidelines apply. Schools and centers may reserve up to one-half percent of the 4.0 percent salary pool for an approved bonus program.  These bonuses will be awarded at the end of FY07 in June 2007. The guidelines shall be prorated for schools and centers that have a lower percentage based on fiscal constraints.  The University merit increase guideline is 0 to 6.0 percent.  The aggregated salary pool may not exceed a 4.0 percent average regardless of the performance rating distributions. Employees who meet established standards may receive up to 3.0 percent. Employees with unacceptable performance are not eligible for an increase (0%).  Again, the salary increase pool average is not to exceed a maximum of 4.0 percent. The Division of Human Resource’s Compensation office is available to discuss the merit increase parameters with Schools and Centers.  Performance is a key factor in the salary increase process.  The Division of Human Resources Staff and Labor Relations is available to discuss performance management issues.

This year’s salary increase guidelines have been designed to recognize and reward the valuable contributions of faculty and staff to the University’s mission and commitment to excellence.

Amy Gutmann, President
Ronald Daniels, Provost
Craig Carnaroli, Executive Vice President




  Almanac, Vol. 52, No. 31, April 25, 2006


April 25, 2006
Volume 52 Number 31


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