The UW pay plan is the Universities of Wisconsin’s primary mechanism for adjusting employee compensation. Every two years, state agencies across Wisconsin submit funding requests to secure general purpose revenue (GPR) for essential expenses like payroll. However, unlike other state agencies, the Universities of Wisconsin are required to fund a portion of their pay plans. Each of the 13 state universities typically pays 30 percent of the cost, while the state covers the remaining 70 percent.
That 30 percent share can place a significant financial burden on campuses, especially as they face rising operational costs due to inflation. Without additional support, institutions may be forced to divert resources from other critical areas, raise tuition and fees, and delay salary increases, impacting employee retention and student success. The pay plan “is essential for us as we work to recruit and retain excellent instructors, top-notch researchers, and dedicated staff. Full funding of the compensation plan is an investment in the people that make us great and will help us retain top talent,” says Chancellor Jennifer Mnookin.
In previous budget cycles, approval of the pay plan has often been delayed or only partially funded because of misunderstandings about how it works and why the UW’s funding structure differs from other state agencies.
Recognizing the vital role public universities play in the state’s workforce pipeline, Governor Evers’s proposed 2025–27 budget includes an investment of $856 million in GPR for the Universities of Wisconsin, calling them “critically important to attracting, training, and retaining the next generation of workers in Wisconsin.”
With its share of that funding, UW–Madison would use $56 million to support a 5 percent salary increase in fiscal year 2026 and a 3 percent increase in 2027. These base adjustments are essential to align compensation with national medians. At the same time, additional merit and market-based increases will help retain high-performing faculty and staff and attract top talent to the UW in an increasingly competitive job market.
Photo by Althea Dotzour, UW–Madison.
