Purdue scraps pay freeze proposal

Apr 16, 2013

All Purdue employees will be eligible for a raise the next two years. A plan to freeze the salaries of administrators earning more than $50,000 has been canceled.

Instead, the university is setting aside money for a 1% merit pay increase. The actually amount of raises will be decided by deans, department heads and supervisors, based on employee performance, which is keeping with past practices for merit raises.

Officials say an account previously budgeted to deal with cases of faculty with exceptional performance or those the university wants to keep from leaving will be added into the pool of funds available for faculty raises.

The new plan is expected to save the university $7 million. Doing away with some raises under the initial proposal would have saved the university $5 million the next two years.

The money will help cover $40 million in unrealized revenue as Purdue students benefit from a two year freeze on tuition and most fees.