Use these salary formulas to calculate starting salaries, salary increases, fringe rates, and cost of living adjustments for a variety of employee categories.

Please contact your Temp Hire & HCM Support analyst if you have any questions on LOA salaries.

Salary Calculation Formula for Merit and COLA

The following formula is used to calculate new base salary in years where COLA is awarded:

Base + COLA

The following formulas are used to calculate new base salaries when multiple increases are involved with an identical effective date:

(Base + Merit + Equity) * COLA

(Base + Equity) *COLA

(Base + Merit + Equity + Promotion) * COLA

(Base + Merit + Promotion) * COLA

An ARTS base salary is the negotiated academic year salary for an administrator when the administrative position was accepted. ARTS are notated in the remarks section of the employment document. An increase to an employee's ARTS is handled independently, yet in the same manner as their "A" base salary. The method is as follows:

Old "A" Base + Merit + Promotion + COLA + Equity = New "A" Base
Old "ARTS" Base + Merit + Promotion + COLA + Equity = New "ARTS" Base

Example

90,000 + 1,000 + 0 + 3,640 + 0 = 94,640 (New "A" Base Salary)
65,000 + 1,000 + 0 + 2,640 + 0 = 68,640 (New "ARTS" Base Salary)

Old "A" Base Salary = 90,000.00
Old "ARTS" Shadow Base Salary = 65,000.00
Merit = 1,000
Promotion = 0
COLA% = 4%
Equity = 0

Note: COLA calculation is listed above.

"B" Shadow Base Salary Calculation Formula

A "B" shadow base salary is the academic year salary for a faculty member who has taken on administrative duties and is now paid on an "A" base salary or fiscal year salary. The "B" base salary, for these employees, has been increased to a factor of 1.2 to compensate for the added responsibilities and time commitment. An increase for an employee who is being compensated on an "A" base salary and has a "B" shadow base Salary is calculated as follows:

Special Title Treatment

Old "A" Base/1.2 = Old "B" Shadow Base
Old "B" Shadow Base + Merit + Promotion + COLA + Equity = New "B" Shadow Base
New "B" Shadow Base X 1.2 = New "A" Base

Example

60,000 / 1.2 = 50,000
50,000 + 1,000 + 2,000 + 2,120 + 1,500 = 59,620 (New "B" Shadow Base Salary)
59,620 X 1.2 = 71,544 (New "A" Base Salary)

Old "A" Base Salary = 60,000.00
Old "B" Shadow Base Salary = 50,000.00
Merit = 1,000
Promotion = 2,000
COLA% = 4%
Equity = 1,500

Note: COLA calculation is listed above.

Calculating "A" Contract (Fiscal Year) Salaries with Mid-month Starting or Ending Pay Period Dates

Faculty salaries are paid on a monthly basis (the monthly pay period is from the 1st of the month through the last day of the month). At times appointments begin or end in the middle of a month. To calculate the correct amount to include in your document total, use the following calculation.

(Monthly pay period amount * number of full pay periods) + prorated pay period amount(s)

The following formula is used to prorate a mid-month amount for salaries starting or ending in the midst of a month.

Special Title Treatment

(Annual full-time salary * retirement factor (if applicable) * FTE of employee/12) rounded to the nearest cent = Monthly Pay Period Amount

(Monthly Pay Period amount/# of workdays in the pay period being prorated) rounded to the nearest cent = Daily Rate

Daily Rate * # of workdays employee in paid status = Prorated amount

Example

An employee on an "A" contract starts February 17, 2004. There are 20 working days in February. The employee is on contract for nine of the days in February.

Start date: 2/17/04
End Date: 6/30/04
Base Salary: \$40,000.00
Monthly Pay Period Amount: \$3,333.33
Number of work days in pay period to prorate: 20
Daily Rate: \$166.67
Number of days employee under contract: 9
Proration for February: \$1,500.03
Contract total with additional un-prorated pay periods: \$14,833.35

Note: Workdays are all days in the month excluding weekends. Holidays are included but an employee cannot start on a holiday.

Calculating "B" Contract (Academic Year) Salaries with Mid-semester Starting or Ending Pay Period Dates

Faculty salaries are paid on a monthly basis (the monthly pay period is from the 1st of the month through the last day of the month). Academic year appointments are based upon the academic calendar. They are not under contract the full fiscal year and prorations of a semester must reflect the percentage worked. At times, appointments begin or end in the middle of a semester. To calculate the correct amount to include in your document total use the following calculation.

(Semester rate / number of work days in semester) * number of workdays employee is under contract.

The following formula is used to prorate a semester amount for salaries starting or ending in the midst of a semester.

(Annual full-time salary * retirement factor (if applicable) * FTE of employee/2) rounded to the nearest cent = Semester Amount

(Semester Amount/# of workdays in the semester being prorated) rounded to the nearest cent = Daily Rate

Daily Rate * # of workdays employee in paid status = Prorated Semester amount

Example

An employee on a "B" contract starts February 10, 2004. There are 84 working days in the spring semester. The employee is on contract for 64 of the days in the semester.

Start date: 2/10/04
End Date: 5/17/04
Base Salary: \$48,000.00
Semester Rate: \$24,000.00
Number of work days in semester: 84
Daily Rate: \$285.71
Number of days employee under contract: 64
Proration for Semester: \$18,285.44

Note: Workdays are defined on the academic year calendar. Visit the Office of the Executive Vice President and Provost to view the calendar.

Calculating Fringe Inclusive Salary Modification

The following formula is used to calculate a fringe inclusive modification to an existing salary.

Monies awarded/(1 + Fringe Rate for employee type) = Gross Amount Available to Pay

Example

Employee Type: Faculty Position (Professional Contract)
Monies Awarded: \$3,000.00
Fringe Rate: 13.31%

\$3,000/1.1331 = \$2,647.60 gross could be paid

Calculating Budgeted Salary and Fringe

The following formula is used to calculate how much money would be needed to fund a salary and associated fringes when proposing a position.

Proposed Salary + (Proposed Salary * Fringe Rate for Employee Type) + Health Insurance if applicable = Amount Needed to Fund Position

Example 1

Employee Type: Faculty Position (Professional Contract)
Proposed Salary: \$35,000.00
Fringe Rate: 13.31%
Health Insurance cost: \$5,590
\$35,000 + (\$35,000 * .1331) + \$5,590 = amount needed to fund position
\$35,000 + (\$4,658.50) + \$5,590 = \$45,248.50 needed to fund position

Example 2

Employee Type: Letter of Appointment (one month temporary part-time appointment)
Proposed Salary: \$2,000.00
Fringe Rate: 9.51%
Health Insurance cost: Not Applicable
\$2,000 + (\$2,000 * .0951) = amount needed to fund position
\$2,000 + (\$190.20) = \$2,190.20 needed to fund position