Human Resources Policies

HR43 Eligibility Criteria for Annual Salary Increase

Policy Status: 


Subject Matter Expert: 

Jennifer Pritts, 814-863-7899,

Policy Steward: 

Vice President for Human Resources

POLICY'S INITIAL DATE: August 01, 1962





To establish eligibility criteria for the Annual Salary Increase (ASI) for full-time employees not covered by a collective bargaining agreement. The ASI is intended to recognize the contributions of our employees through a primarily merit-based compensation increase, however other factors such as equity, market, or salary adjustment needs may also be considered. 

The intent of this policy is to provide guidance to units while allowing flexibility in decision making. While the amount of funds provided to units is centrally determined, the distribution of funds to individuals within each area is left for unit determination. It is expected, however, that units will follow the general guidelines provided by Human Resources. 


For increases that are effective July 1, full-time employees hired prior to April 1 of the same year will be eligible for ASI. For increases that are effective a date other than July 1, the University will announce different eligibility criteria. Employees must be in active status as of the pay day salary increases are distributed to be eligible for an ASI. 

It is expected that employees and managers will participate in the annual performance evaluation process and that the increase an employee will receive will be based in part on their evaluation rating. 

This policy excludes the following, who are not eligible for an ASI: 

  • Employees who are no longer employed by the University as of the pay date the ASI occurs.
  • Employees covered by a collective bargaining agreement.
  • Employees who did not complete the annual training "Values, Ethics and Compliance at Penn State" from the Office of Ethics and Compliance by the university established deadline.
  • Postdoctoral Scholar/Fellowship.
  • Part-time employees.
  • Employees who have already been provided their ASI for that year as part of their job offer. 


All ASI's, not already included in an offer letter, are effective on the same date which is determined on a University-wide basis. However, employees in the Applied Research Laboratory may have different timing for the ASI effective date. 



HR34 - Employment Conditions for Full-Time Staff Employees 




Date Approved: 

July 1, 2024

Date Published: 

July 1, 2024

Effective Date: 

July 1, 2024