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Fact Sheet on Competitive Compensation

What is the University's minimum hiring rate?
The University's minimum hiring rate is $11.76 per hour for salaried employees in the Academic Division. This rate was last increased October, 2014.

How does U.Va.'s rate compare with other pay rates?
U.Va.'s rate of $11.76 per hour exceeds the federal minimum wage ($7.25) by 62 percent.

What fringe benefits are included in the University's compensation package?
The University's generous benefits package, including health insurance and retirement benefits, adds from $8.62 per hour to nearly $13 to the $11.76 rate, depending on how many dependents employees have on their health insurance. That means the lowest-paid employee at the University receives anywhere from $20.38 to $24.62 per hour in total compensation. Almost half of this benefits package is health insurance. Individuals without employer health insurance could pay much more per month for comparable coverage, according to national surveys. For example, the cost of insuring a single person with no dependents on U.Va.'s high premium plan is $500 a month (2015 figures). The employee's premium is just $90 a month, with the University paying 82 percent of the total cost, or $410 a month, on the employee's behalf.

What are some of the other benefits that employees receive?
The University offers educational benefits to its employees, including tuition remission and reimbursement. In addition, employees have the option of participating in supplemental retirement accounts (403b) for which the University matches 50 percent of the employee's investment up to $40 a month. A short description of the benefits is available on Salary Snapshot.

How does the University set its pay rate?
University compensation varies according to employment type. Classified employees are compensated according to: 1) state-established pay bands for classified employees; 2) annual increases based on state-determined amount; and 3) adjustment opportunities based on job content changes and/or additional duties increases, in accordance with the State Personnel Act. University Staff are compensated according to: 1) market-based pay ranges; 2) increases based on performance; and 3) adjustment opportunities based on job content changes and additional duties, as well as promotions, new skill acquisition and application of new skills.

Where does the funding for salaries and wages come from?
Depending on the area in which the employee works, funding comes from various sources including student fees, patient revenues, private gifts and General Fund appropriations from the state. The University also has allocated $250,000 most years in addition to funds from the state for strategic base-salary adjustments for classified and University staff employees.

Does the University offer employees bonuses or other rewards?
Individual departments fund Rewards and Recognition bonuses (including both monetary bonuses and paid days off) for superior performers. In addition, the University has provided $200,000 from tuition income to fund bonuses under the state Reward and Recognition Plan. University Staff are also eligible for additional bonuses for performance beyond what the state allows.

What is the turnover rate for employees at the University?
For the second quarter of FY 14-15, turnover was at six percent, while the industry standard for turnover is approximately 11 percent.

What role does the University have in setting compensation for contract employees?
The University contracts for certain services with outside vendors, who in turn set the wages and benefits for their employees. As a state agency, U.Va. does not have the legal authority to impose its will on private vendors and contractors in their setting of wage rates. Over time, some contractors have adopted U.Va.'s wage rules. Others have not, but no contractors have done so because U.Va. determined what they must pay.

Can the University do anything to change that policy?
U.Va. has been advised by legal counsel that only new legislation would allow the University to dictate contractors' salary policies. In March 2006, U.Va. officials requested the Attorney General's advice on two questions: (1) could the University have the authority to require contractors to pay their employees wages that reflect a sum that U.Va. sets and (2) what differences are there between the University's ability to dictate contractors' wage rates and the ability of three localities that claim to have set such rates for their contractors. An advisory letter received on March 21 and made public in early April 2006 stated that the University does not have authority to determine the wages paid to employees of contractors. For a copy of that letter (pdf format), click here.

Compensation changes have been made at the University as a result of Restructuring. Since July 1, 2006, all staff hired at the University are considered University Staff instead of Classified Staff. University Staff come under a different set of compensation policies and procedures. More information and FAQs.