UNC Asheville Office of Human Resources Legislative Increase (LI) updates

The budget passed by the North Carolina General Assembly and signed by Gov. Josh Stein makes significant investments in the UNC System and in UNC Asheville. Importantly, for our dedicated employees, the budget included a 3% salary increase for most UNC System employees and a 13% salary increase for sworn law enforcement officers. The salary increases for this fiscal year are retroactive to July 1, 2026. Also included were bonuses for all state employees: a one-time bonus of $1,750 for employees earning $65,000 or less as of June 30, 2026, and a one-time bonus of $1,000 for employees earning more than $65,000 as of June 30, 2026, The bonuses are to be paid on Oct. 15, 2026, to eligible employees.

The 2026-27 budget includes a 3% salary increase for most UNC System employees and a 13% salary increase for sworn law enforcement officers.

The following employee groups are generally eligible for the mandatory 3% recurring salary increase and the one-time legislative bonus:

• Employees subject to the State Human Resources Act (SHRA)
• Exempt Professional Staff (EPS, formally known as EHRA)
• Chancellors and Senior Academic and Administrative Officers (SAOO)
• Faculty

To be eligible for the pay increase, employees must have been employed by the University on or before June 30, 2026. Employees whose last workday was  prior to June 30, 2026, due to resignation, retirement, dismissal, reduction in force or death are not eligible for the salary increase.

Employees whose last workday was on or prior to June 30, 2026, are not eligible for the salary increase. However, individuals whose last workday was June 30, 2026, and were in an active pay status on June 30, 2026, are eligible to receive the one-time bonus.

Faculty members that entered phased retirement on July 1, 2026, are not eligible for the salary increase. Faculty members that entered the phased retirement program prior to July 1, 2025, or prior years, are eligible for the salary increase.

The salary increases are not based on performance ratings and does include all active employees, including those facing disciplinary action.

The mandatory salary increase is based on eligible employees’ June 30, 2026, salary.

If your salary has changed as of July 1, 2026, or later, the 3% legislative increase dollar amount will be calculated based on your June 30, 2026, salary.

Yes. The mandatory salary increase will be retroactive to July 1, 2026.

The mandatory salary increase for semi-monthly employees will be reflected in eligible employees’ Friday, July 31, 2026, payroll. The retroactive pay to July 1, 2026, will also be reflected in the July 31, 2026, payroll.

Yes, permanent part-time employees are eligible for the mandatory salary increase.

Yes, temporary hourly employees are eligible for the mandatory salary increase. The Office of State Human Resources and the Office of State Budget and Management are working with the General Assembly to determine whether stipend-based or flat-rate temporary employees are eligible for the salary increase.

The mandatory salary increase for temporary employees will be reflected in eligible employee’s August 2026, payroll. The retroactive pay to July 1, 2026, will also be reflected in the August payroll.

The University will review all employees on approved leave on an individual basis. Employees on paid leave should receive the legislative salary increase effective July 1, 2026. Employees currently on disability or who are on a leave of absence (paid or unpaid) are eligible for the mandatory salary increase upon their return. Institutions are not required to process payments for employees on leave without pay until the employee returns, and those payments are to be made on a current basis, not retroactive.

Eligible employees who fully separate from the State of North Carolina – meaning employees who did not transfer to another campus or state agency – after June 30, 2026, but prior to the payroll implementation of the mandatory 3% salary increase are due a pro-rated salary increase payment, retroactive to July 1, 2026, payable by the active employer between June 30, 2026, and the separation date

No, student employees are not subject to the mandatory salary increase or bonus.

Also included in the budget were a one-time bonus of $1,750 for employees earning $65,000 or less as of June 30, 2026, and a one-time bonus of $1,000 for employees earning more than $65,000 as of June 30, 2026.

To be eligible for the legislative one-time bonus, employees must:

• Be a permanent full- or part-time employee as of June 30, 2026
• Be employed at the time of implementation.

Yes, permanent part-time employees will receive a prorated bonus based on their FTE (e.g., a permanent employee paid $60,000 and employed at 0.5 FTE would be eligible for a bonus of $875).

• According to the legislation, the bonus:
  • Is not considered compensation for the purposes of any State retirement system (inclusive of TSERS or ORP)
  • Does not become part of the employee’s annual base salary
  • Must be paid separately from the recurring salary increase
  • Is subject to proper federal and State payroll tax withholding
  • Is non recurring
  • Is not included in retirement compensation calculations

No, temporary employees are not eligible to receive the one-time legislative bonus.

Bonus-eligible employees who separate from the State of North Carolina – meaning employees who did not transfer to another campus or state agency – after June 30, 2026, but prior to the payout of the legislative one-time bonus are due to receive the appropriate bonus amount, based on their salary as of June 30, 2026.

Eligible employees will receive their bonuses in their October payroll.