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Please note: This message applies only to permanent SHRA, EHRA Non-Faculty, and Faculty employees.


The 2022 North Carolina State Budget provides for a 2.5% across-the-board mandatory base salary increase calculated from an eligible employee’s June 30, 2021 base salary. The increase has a retroactive effective date of July 1, 2021, and applies to all eligible permanent SHRA (including probationary and time-limited employees), EHRA Non-Faculty, and Faculty employees. Eligibility requirements are as follows:

  • Eligible employees must have been in a permanent position on both June 30, 2021, and Dec. 31, 2021.
  • The mandatory 2.5% legislative increase will be awarded regardless of current performance ratings or the presence of any active disciplinary actions.
  • The mandatory 2.5% legislative increase will also be awarded even if it results in an employee exceeding the maximum of their assigned salary range.
  • EHRA faculty subject to special clinical pay plans are excluded from the legislative increase and instead are subject to the provisions of these plans with respect to annual compensation adjustments.
  • Temporary, student, and graduate student employees are also excluded from the legislative increase.

The calculation for the mandatory legislative increase will exclude any non-permanent administrative salary supplements in effect as of June 30, 2021, such as interim and acting appointments, temporary additional duties, or secondary administrative titles.

The retroactive pay for the period July 1, 2021, to Dec. 31, 2021, will be issued as a single payment. To be eligible for this retroactive salary payment (or retro pay), employees must have been employed in a permanent position on both June 30, 2021, and on Dec. 31, 2021. An employee who was not employed continuously on a full-time basis between June 30, 2021, and Dec. 31, 2021 will receive the retroactive salary payment on a pro-rated basis.

The retroactive salary payment does not apply to employees separated from service prior to Dec. 31, 2021.

Retiring Employees

If an otherwise eligible employee is retiring or separating, the legislative salary increase will be provided so long as the last day of work (including any leave that the employee may be using) is Dec. 31, 2021, or later. Because Dec. 31 may be a state holiday and paid day off, “last day of work” refers to the last day on which the person is a paid state employee, regardless of whether the employee came into the office on that day.

Employees on Disability or a Leave of Absence

Employees currently on disability or on a leave of absence (paid or unpaid) may be eligible for the mandatory legislative increase and retroactive lump-sum payment upon their return if they satisfy all other eligibility criteria.

Important Notes on the Calculation

The retroactive salary payment for SHRA employees will be calculated to include the impact of the 2.5% salary increase on any earned premium pay, overtime pay, etc.

Faculty on Phased Retirement

Subject to any limitations imposed under the State Retirement System and the legislative appropriations process, faculty members who entered the Phased Retirement Program on July 1, 2021, are not eligible for the mandatory legislative increase, the COVID-19 bonuses, or any of the discretionary increases.

Faculty members who entered the Phased Retirement Program in 2020 or prior years are eligible for the mandatory legislative increase, the COVID-19 bonuses, and the discretionary increases.

Transfer Employees

For those who are employed in a permanent position as of June 30, 2021, and Dec. 31, 2021, but who transferred within that time period between state entities eligible for the 2.5% mandatory legislative increase or bonus, the new employing entity is responsible for paying the entire retroactive salary based on the employee’s June 30 base salary. Any concerns about funding the portion prior to the employee’s hire date should be directed to the budget office.

Payment Schedule

For biweekly paid employees, the 2.5% mandatory salary adjustment and retroactive salary payment will be issued on your Friday, Jan. 28, 2022 paycheck. For monthly paid employees, this will occur on your Monday, Jan. 31, 2022 paycheck.

For questions concerning the 2.5% legislative increase, please reach out to your HR Officer. To find the HR Officer for your school or division, please view the directory on the School/Division HR Offices page. If you have questions about the paycheck, please email payroll@unc.edu.

Thank you for all you do as a UNC employee,

Walter Miller
Director of Payroll Services

Linc Butler
Associate Vice Chancellor of Human Resources / Interim Assistant Provost for Academic Personnel

 
 

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