Equity Increases

An equity increase is typically based on a salary inequity that cannot be corrected through the merit review cycle.

A salary inequity exists when an employee's salary is significantly below that of others in the same title code with similar performance, experience, skills, knowledge, and assignments. Examples of situations that may indicate a salary inequity include:

  • The salary of a long term-employee is low relative to a new hire whose salary is market-driven.

  • Significant salary compression exists between a supervisor and their employees.

  • An employee changes from a casual to a career position in the same class.

Market factors influence recruitment and retention.

Reasons for Equity Increases:

Equity increases may be provided for those employees who are compensated at a relatively lower level for the work they perform.

Managers should consider addressing significant salary differentials within the UC Berkeley campus.

  1. Employees with relatively low salaries: Employees within a specific job title (e.g. Financial Services Analyst 3) whose annual salary is significantly lower than the average salary across campus in that same job title.

  2. Salary Compression: There should generally be a reasonable salary differential between supervisor/manager and that position’s subordinates.

Factors should be part of the decision on an equity increase:

  • Budget availability.
  • The performance of the employee relative to other employees in the same job title.

  • The special skills and expertise of the employee relative to other employees in the same job title.

  • Actual salary compression of the manager’s or supervisor’s salary relative to the salaries of the subordinate employees.

  • Recent salary increase the employee may have received.