Purdue to invest $50 million in pay increases, raise minimums on grad stipends and staff wages

Purdue University announced Friday (April 8) the plan to implement stipend and salary adjustments for select graduate students, faculty and staff in its ongoing objective to recruit and retain the best talent to meet the university’s missions in teaching, research and engagement.

“Purdue faculty, staff and graduate students are among the best and most sought-after in the world and remaining competitive in the marketplace and among our peers is vital to our efforts in recruiting and retaining these talented individuals,” said Purdue President Mitch Daniels. “Over the past several years, we have consistently provided above-market merit pay increases, but there are some specific job categories where our research has indicated we are below market. We thank the Graduate School Task Force, the Purdue Graduate Student Government, CSSAC (Campus Support Staff Advisory Committee), and MaPSAC (Management and Professional Staff Advisory Committee), for their valuable input as we worked through a market study on the external labor market and determined the best path forward to keep us at the top of our peer group. 

With the exception of the pandemic year of 2020, Purdue has offered a merit increase at the West Lafayette campus every year since 2010, with increases over the past six years ranging 2.5%-3.5%. Additionally, the university has provided appreciation awards of $750 and $500 for employees in each of the past two Decembers.

In December 2021, university officials announced a 4% salary merit pool for West Lafayette faculty and staff for the 2022-23 fiscal year, plus an extra 1% pool to address market adjustments and specific workforce objectives, including graduate student staff stipends and faculty and staff salaries in selected disciplines and areas, pay for entry-level service staff, and job/family structure compensation ranges for highly competitive in-demand jobs.

The combined 4% and 1% compensation pool, the largest total investment in compensation in more than two decades, represents a $50 million investment across all funding sources for fiscal year 2023.

The 1% adjustment pool, a total of $11.5 million, will be allocated among graduate students, staff and faculty with implementation of the adjustments beginning May 1 for faculty and staff, and beginning with the 2022-23 academic-year contracts — Aug. 15 — for graduate students. As is routine practice, university officials conducted a market study review of all positions to determine the market adjustments. The 4% salary merit pool will be awarded on the normal timeline, with increases effective July 1.

Approximately 170 faculty and lecturers, as well as 1,600 staff at the West Lafayette campus, will receive market adjustment increases, in addition to merit increases based on their 2021-22 performance.

The minimum salary for full-time hourly employees on the West Lafayette campus will be raised to $15 per hour. Additionally, staff who fall below the minimum on the newly adjusted pay band structure will see increases. Those primarily affected will include service and entry-level professional jobs, academic advisors, child care workers, animal care technicians, lab technicians, business office positions, certain skilled trades and student-facing student affairs positions. 

Approximately 21% of Purdue graduate student staff will see an increase as Purdue raises the minimum stipend to what we anticipate will bring Purdue minimums into the top one-third of Big Ten institutions. Additionally, graduate students above the new minimums will be eligible to receive salary adjustments from the 4% central raise pool and through college-determined strategic investments.

All faculty and staff who are affected by the increase will be notified through their departments and supervisors once final budget determinations have been made on or after April 18. An FAQ is available here. Graduate student staff affected by the increase will be notified on or after July 1. Questions may be directed to marketadjustments@purdue.edu.

Faculty and staff who receive an increase from the extra 1% market adjustment pool also are eligible for a merit increase as determined through their annual performance review process. Those merit increases will take effect July 1. This year’s merit pool is the largest in over 20 years at Purdue and is believed to be on the high end among peer institution increases.