Merit Salary Policy for Classified Employees

Handbook of Operating Procedures 5-3110

Merit Salary Policy for Classified Employees

The University of Texas at Austin
Executive Sponsor: Senior Vice President and Chief Financial Officer
August 1, 1986



  1. Definition. A merit salary increase is a discretionary financial recognition of an employee who has demonstrated increased productivity, improved efficiency and/or exceptional quality of work performance above and beyond that which would be considered standard performance of duties. It is distinguished from job classification or reclassification, which is a statement of the responsibilities, duties and compensation of classified position regardless of who the incumbent might be.
  1. Implementation. Recommendations for merit salary increases must be based on superior work performance by the employee as evaluated and determined by the Supervisor and Departmental official.

A merit salary increase may be recommended for an employee who has worked for The University at least six months, but there shall be no "automatic" merit increase at the six months anniversary or anytime thereafter.


  1. Criteria for Evaluation. Job-related factors to be rated in reviews for merit salary increases include the following:
  1. Quantity and quality of work performance compared to standards for the job classification and the specific position;
  1. Attitude toward the job, including initiative and dependability;
  1. Cooperation with peers, subordinates and supervisors;
  1. Punctuality and attendance.
  1. Effective Date of Merit Increases. Normally, a merit salary increase may be granted no more than once in a fiscal year for an individual employee and it is expected that it will be granted on September 1. Merit salary increases may also be granted at mid-year (March 1) if funding was not available on September 1, if an employee was not eligible for a merit increase on September 1, or in other exceptional cases. All merit increases are subject to review by the Office of Human Resources on behalf of the President.
  1. Funding of Merit Increases. The source of funds for approved merit increases shall be from the budget allocated to each department. Merit increases may not be funded from vacant positions, wages, or any other source that would result in a departmental budget shortage in succeeding years.


Previously HOP 9.24