Staff Minimum Starting Pay Increase and Annual Supplement
Virginia Tech is raising our minimum starting pay for full-time, benefits-eligible staff employees. The basic features of this program are:
- The minimum starting pay for full-time, benefits-eligible staff employees will increase from $10.25 to $12.00 per hour, effective July 10, 2019.
- Full-time, benefits-eligible staff employees making an annual salary of $35,500 per year or less will be eligible for a pay supplement of $500 starting January 2020. This supplement will be paid annually each year in January.
Following are answers to commonly asked questions about the minimum starting pay increase and annual supplement.
NOTE: More information about the annual pay supplement will be available in the coming months as the program rolls out.
Frequently Asked Questions
There are 3,449 full-time, benefits-eligible Virginia Tech staff employees as of March 1, 2019. Of this group, approximately 225 employees will receive increases to adjust their hourly rate to $12. The new hourly rate will take effect July 10, 2019. Employees will see the increase on their August 1, 2019 paycheck.
Employees who are currently paid between $12 and $13.50 per hour in pay-bands one and two will receive an adjustment as well. Approximately 312 employees will receive increases above $12 per hour.
The university is currently developing its 2019-2020 fiscal year budget. The timetable for the minimum starting pay adjustments allows the university to plan for these costs as part of the budgeting process.
Full-time, benefits-eligible staff employees will be hired at the new $12 hourly rate starting July 10, 2019.
These changes are the latest step forward in the university’s effort to better understand and address employee needs, especially these valued employees who provide such strong support to the university. Providing this adjustment to our full-time, benefits-eligible staff will assist with recruitment and retention and is another way to support these hard working employees. Over the next few months, we will be working on an assessment of pay for non-salaried, hourly wage employees and contract workers.
The university established a working group that included representatives from the university's Staff Senate and Faculty Senate. The senates expressed a strong desire to increase the minimum starting pay for staff employees. The group reviewed data on staff turnover, vacancy rates, pay rates of other companies, salary data from the Massachusetts Institute of Technology (MIT), data from the U.S. Department of Health and Human Services, and the reports and recommendations from a number of staff groups. The working group recommended the $12 per hour rate considering the data points, and Virginia Tech’s employment requirements.
The next phase of Virginia Tech’s minimum starting pay analysis will focus on hourly, non-benefited wage employees. This work will be completed in the coming months.
Virginia Tech will review the minimum starting pay rate on an annual basis in January of each year. The university is committed to a careful and consistent review process to ensure that our minimum starting pay remains competitive and allows us to attract and retain the best quality staff to help the university achieve its core mission.
To address concerns related to childcare, parking, medical premiums, and other expenses, full-time, benefits-eligible staff employees with an annual salary equal to or less than $35,500 ($17.06 per hour) will begin receiving an annual, taxable pay supplement of $500. Implementation of the supplement will begin January 1, 2020. This supplement can be used to offset any employee expense.
Yes, subsequent annual supplements will be paid in January each year.
The annual supplement will only be paid to full-time, benefits-eligible staff employees with an annual salary equal to or less than $35,500. The continuation of the supplement and the salary level for eligibility will be reviewed annually. If the salary level to receive the supplement changes, we will communicate that information.
Implementing these changes for staff will cost approximately $1.50 million each year.
Employees who will receive an increase under this program will be notified in June 2019.
There will be no change in hourly wage pay as a result of this program. However, an analysis of wage employee data will be completed in the next few months. Any approved recommendations that come out of the analysis will be communicated at a later date.
The university will work with faculty and staff representatives to consider the unique needs of Virginia Tech and how we can best recruit and retain the best workforce. We are committed to an annual review process that considers a variety of factors in establishing competitive pay. Some universities and major employers have committed to different pay strategies that reflect different workforce composition and financial considerations.
Yes, the minimum starting pay increase to $12 per hour applies to all full-time, benefits-eligible staff employees, including both university and classified.