Penn State's fiscal year started July 1, and the university plans to notify employees about pay raises in the next few weeks, according to a spokesman.
The 2025-26 budget — approved a year ago — includes funding for raises. Specifically a 3% pool of money to pay for employees’ merit-based increases.
A Penn State spokesman says the university is not holding pay increases until the state approves its funding, like it did in previous years. In those cases, employees' raises were retroactive to the start of the fiscal year.
The state is already about three weeks late in passing its budget. That’s leaving Penn State and other universities waiting for their funding.
The spokesman said the university is preparing the annual salary increase process “and will share more information with employees in the next few weeks.”
And, looking ahead to next year, Penn State’s budget includes another 3% pool for merit-based raises. The university board of trustees approved the 2026-27 budget during its meeting Friday.
