UW–Madison approves $12.5 million in pay raises and bonuses | The Locally Times
Published · The Locally Times
University leadership allocated $7.5 million for base pay adjustments and $5 million for performance bonuses, effective November 29, 2026.
University of Wisconsin–Madison leadership has approved allocating $12.5 million this fiscal year to maintain salary market competitiveness and to reward and retain high-performing faculty and staff. The university's October 6, 2026 announcement states the funding will also increase compensation of lower-paid employees and address salary compression and parity concerns. The central compensation fund includes $7.5 million for base-building pay adjustments for eligible faculty, academic staff, university staff and limited appointees, with the remaining $5 million dedicated to employee performance bonuses. The central funds supplement a 2% pay increase for Universities of Wisconsin employees that took effect in July 2026. To qualify for a base adjustment or one-time bonus, employees must be in good standing on position-specific compliance requirements, have served at least six months in their current position, not be serving a probationary or performance-evaluation period, and have met performance expectations in their last evaluation. Supervisors are required to complete performance evaluations for the employees they supervise, and additional criteria may apply at the college, school or divisional level. Each school, college or division is being asked to outline its eligibility and distribution processes and share that information with employees in its unit. Implementation will involve the university's Office of Human Resources, Universities of Wisconsin, colleges, schools, divisions, managers and supervisors, and units are encouraged to review their budgets to address salaries for positions that are not centrally funded. Pay adjustments become effective on November 29, 2026, and all performance bonuses will be paid by December 2026.