UNIVERSITY PARK, Pa.— As a reflection of Penn State’s ongoing work to provide competitive salaries, and to recognize and reward faculty and staff for their contributions and dedication, Human Resources (HR) is beginning the process of working with units to provide an annual salary increase (ASI) to eligible faculty and staff for fiscal year 2025-26. Salary increases for unionized employees are negotiated separately.
The increase in pay will be reflected in eligible employees’ September paychecks, and increases will be retroactive to July 1. Employees will be able to view their ASI in Workday starting Sept. 22.
“We are grateful to our employees for their daily contributions to driving student success, and to our teaching, research and service missions,” said Jennifer Wilkes, vice president for Human Resources and chief human resources officer. “Penn State is among the world’s greatest public universities, and that is no accident – it’s thanks to our hard-working, world-class faculty and staff.”
In July 2024, the Penn State Board of Trustees approved the 2025-26 budget to award salary increases for employees. Individual salary increases may be higher or lower than the approved 3% as they are awarded based on employee performance, available funding, and unit-specific goals.
With the board’s passage of the 2026-27 budget on July 18, the University also is planning for an ASI pool of 3% for the 2026-27 fiscal year.
“At a time when higher education nationally is facing a complex and evolving landscape, and some institutions are cutting budgets and not able to offer employees compensation increases, at this time, Penn State is again setting aside a 3% pool for salary increases for eligible employees in 2026-27, in recognition of their hard work, dedication and value to the University,” Wilkes said.
The Applied Research Laboratory and the College of Medicine will follow their internal processes, which will be communicated separately to those employees.