University's current minimum hiring rate: $9.37 an hour

Who does this apply to: All classified salary and classified wage employees in the academic division, including UVaTemps, and all Medical Center employees.

Most recent increase in this wage: March 2006, up from $8.88 an hour.

How does this compare to others: U.Va.'s rate is 81 percent higher than the federal and state minimum wage of $5.15, and 37 percent higher than the minimum pay rate for state classified employees of $6.83 an hour.

The University of Virginia's minimum hiring rate is the second-highest in the state among public universities. Only that offered by George Mason University, which has three campuses in Northern Virginia - Fairfax, Arlington and Manassas - offers a higher starting hourly wage at $10.40 an hour.

Value of fringe benefits included in standard compensation package at the University: U.Va.'s fringe benefit rate currently adds 35.1 percent-or $3.29 cents an hour / $6,843 annually-to an eligible classified employee's total compensation. In July, that rate will increase to $3.45 per hour or $7,176 annually.

Today, that translates to $12.66 per hour in total compensation for entry-level positions at U.Va.

(Note: Individuals with no employer health insurance could pay in the range of $200 to $400 a month for health insurance coverage, according to a national survey.)

University contributions to employee wages: The Board of Visitors has allocated $250,000 each year for the past three years for base-salary adjustments for classified employees and plans to continue doing so going forward. Over the past six years the University has awarded 3,853 in-band adjustments totaling nearly $12.5 million.
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Employee Bonuses and Awards: The University offers rewards and recognition bonuses (monetary and paid leave). These bonuses total more than $1 million and nearly 2,150 days off since the program began in 2001.

Other benefits: The University offers educational benefits to its employees, including tuition remission and reimbursement. The University offers optional supplemental retirement accounts (403b) for which the University will match 50 percent of the employee's investment up to $40 a month.

It is the University administration's intention that those at the minimum hiring rate advance and assume more responsible roles within the institution. As of Nov 28, 2005, more than two-thirds (67%) of the employees who made less than $10.72 an hour have worked 5 years or fewer, and half of these are in their first two years at U.Va. We strive to be a place where people choose to build their careers and where they can count on stable employment over long periods of time.

U.Va. prides itself on a low turnover rate of 8 to 10 percent, one that is far less than the industry standard of nearly 20 percent. Forty-one percent of U.Va. employees have been here more than 10 years; nearly 30 percent 15 years or more.

Wages of contracted employees: According to the Attorney General of the Commonwealth of Virginia, the Board of Visitors at the University does not have the authority to impose minimum wage standards on private contractors or vendors. In addition, the AG's office stands by its 2002 opinion that any locality requiring a "living wage" as condition of procurement is in violation of the Public Procurement Act. The University remains an agency of the Commonwealth, and cannot violate the Act.

(University of Virginia Press Release, April 20, 2006)

Editor's Note: See also FAQ on Competitive Compensation and A Letter from President Casteen Concerning Competitive Compensation at the University