Why do academic staff not receive the annual salary increase that is budgeted in the grant from which they are funded?
Levels of budgeted compensation increases allowable in grants are often specified by the funding agency irrespective of a particular university’s compensation policies. However, all grants are awarded contingent upon adherence to state legislation and UW policies, which provide for funding-neutral compensation structures and pay plans. As a result, the increases budgeted in the grant may be higher or lower than an academic staff member may be deemed eligible for from the UW-Madison. Although this may mean that the academic staff member gets a lower compensation increase than what was budgeted in the grant, it also may mean that there is some degree of insulation of the academic staff member from any negative changes in the research budget. For example, a funding agency’s decision to reduce the amount of an award in a particular grant year does not result in a downward pay rate adjustment for academic staff paid on that grant.
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