Parameters shared for Jan. 1 salary increases

The guidelines are set for Jan. 1 performance-based salary increases for faculty, professional and scientific (P&S) and contract staff and post docs. The discretionary adjustments, approved earlier this summer by senior leaders and the Iowa Board of Regents, provide supervisors with parameters for awarding salary increases to employees that align with their performance evaluations. Last week, vice president for university human resources Kristi Darr shared the fiscal year 2026 parameters:

• The minimum increase for satisfactory performance is 1.0%.
• Increases up to 3.0% may be given for satisfactory performance.
• Increases up to 4.0% may be given for extraordinary performance without additional approval.
• Increases greater than 4.0% may be given for extraordinary performance, but require authorization from the respective senior vice president or president.

"Rewarding performance is critical to retaining our employees who work hard every day to deliver on Iowa State's land-grant mission to educate, innovate and serve Iowans and the world," Darr said.

Salary adjustments will take effect Jan. 1, 2026, and be calculated from an employee's Dec. 31 base salary (or institutional base salary for faculty). The eligibility criteria for performance-based salary adjustments for these four employee groups can be reviewed in a knowledge base article.

For a P&S employee whose Dec. 31 salary is nearly at or above the maximum of their pay grade, any portion of the Jan. 1 performance adjustment that pushes their salary over the maximum will be given as a one-time payment.

Under Iowa State's current timeline, annual performance reviews for these employee groups should be completed no later than Dec. 1. Employees whose performance is less than satisfactory aren't eligible for a performance-based salary adjustment. 

Salary policy for merit employees

Merit employee salary increases are set in a new two-year contract (2025-27) between the state of Iowa and the Iowa chapter of the American Federation of State, County and Municipal Employees (AFSCME). According to the contract, merit employees received an across-the-board contract salary increase of 2.0% on July 1, and are eligible for an additional performance-based increase of 1.0% on their merit review date in fiscal year 2026.

Merit employees covered by the state of Iowa-AFSCME public safety contract received an across-the-board contract salary increase of 3.0% on July 1. Those eligible for step increases will receive a 4.5% increase on their eligibility date in FY 2026.

Shift differential increase for merit employees

Unrelated to the AFSCME contract and effective Sept. 1, Iowa State will raise its hourly differential rates 25% for merit employees who work evening and overnight hours. Differential pay is in addition to an employee's regular hourly rate. The increase reflects the university's effort to be competitive with market prices and to recruit and retain staff working evening and night shifts. This change doesn't include merit employees covered by the public safety contract. 

Shift differential pay (per hour)