Step Zero Salary Increases: Lump-Sum Payments


When an employee is progressing in their position, they should be coached and prepared for movement to the next level, whether that be reclassification or movement to another position within the University. If an employee reaches the top of the salary grade, they should be ready for the next step in their career development.  

Historically, when an employee reaches the top of the grade, the provision of a lump-sum increase has been the standard compensation practice for UA HR. We have been and will continue to handle increases for employees reaching the end of a salary grade as an annual lump-sum payment whether it be an in-grade salary adjustment or an across the board (or cost of living) salary increase. 

There are certain unavoidable situations resulting in salary placement at step 0, however, we are striving to keep employees on the salary schedule. UA HR is always willing to work with departments on viable solutions for employee compensation.


For NR/XR employee classes, when employees reach the top of the salary schedule, salary increases are administered differently. Employees will move no higher than step 55 of the appropriate grade. Their salary will remain at step 55 and any increase will be paid out in an annual lump sum payment. The lump sum payment will be based on the approved increase percentage multiplied by the employee’s annual salary. Lump-sum payments in lieu of salary schedule increases will be made on the first paycheck of the new fiscal year for increases effective that fiscal year. A combination of step movement and lump sum payments may be made if the amount of the increase brings the employee to step 55 and still allows for a percentage increase.


An employee is at step 53. UA approves a 3% increase effective the next fiscal year. The employee will be advanced two steps to step 55, and receive a 1% lump-sum payment on the paycheck covering the first pay period of the new fiscal year.

The compensation team will provide the personnel and payroll teams with a list of employees that will receive their annual salary increases as lump-sum payments. UA HR will notify affected employees by email when this occurs.

If you have any questions, please reach out to the compensation team at

Need additional help or have questions?

Please contact for additional assistance.  

To contact other UA HR teams, please visit our Contact Us page at



Article ID: 1358
Wed 12/7/22 12:53 PM
Thu 1/18/24 8:16 PM