2026 Legislative Salary Increase and Bonus for Eligible Employees

Governor Josh Stein signed the state budget into law on July 7, 2026. As authorized by the 2026 Appropriations Act, eligible employees will receive a Legislative Salary Increase (LSI) and a bonus. The UNC System Office issued guidance outlining the eligibility requirements and implementation process.  A summary of the implementation details and eligibility criteria is provided below.

Legislative Salary Increase

• Eligible employees will receive a 3% LSI calculated on their June 30, 2026, base salary. Eligible Sworn Law Enforcement Officers will receive a 13% LSI in lieu of the 3% LSI. For example, an employee earning a base salary of $50,000 on June 30, 2026, and eligible for the 3% LSI, will have a new base salary of $51,500, effective July 1, 2024 ($50,000 x 1.03 = $51,500).
• The calculation of the LSI excludes any non-permanent administrative salary supplements or salary increase in place for an interim appointment or temporary increased duties. For administrators returning to a faculty position, the LSI is calculated on their July 1 faculty salary.
• The LSI is effective July 1, 2026, and will be reflected in most employees’ July 31, 2026, paycheck subject to the eligibility criteria below. Eligible temporary hourly employees will receive the LSI in their August 14, 2026, paycheck which reflects hours worked in July.

One-Time Bonus

• Eligible employees with an annual salary of $65,000 or less will receive a $1,750 one-time bonus; eligible employees with a salary greater than $65,000 will receive a $1,000 one-time bonus.
• The salary threshold is determined using the employee’s salary on June 30, 2026, and is prorated for part-time employees based on their FTE (Full-Time Equivalency).
• The bonus is not considered compensation for the purposes of any State retirement system (inclusive of the Teachers and State Employees Retirement System and the Optional Retirement Program) and is subject to federal and state payroll tax withholding.
• The bonus will be paid to eligible employees in their August 31, 2026, paycheck.

Eligibility Requirements

• Permanent benefits-eligible part-time (.50 FTE or greater) or full-time SHRA and EHRA employees (including time-limited and probationary employees) are eligible for the LSI and bonus. This includes UNCW employees at D.C. Virgo.
• Temporary hourly employees are eligible for the LSI; however, they are not eligible for the bonus. Note: We are awaiting guidance from the UNC System Office on LSI eligibility for temporary flat rate employees (those with “TE” assignments).
• Graduate and undergraduate student employees are not eligible for the LSI or bonus.
• Employees whose last workday/separation date is on or prior to June 30, 2026, are not eligible for the LSI or the one-time bonus. Temporary hourly employees must have an active assignment on June 30, 2026, to be eligible for the LSI.
• Faculty members who entered the Phased Retirement Program on July 1, 2026, are not eligible for the LSI. Faculty members who entered the Phased Retirement Program in 2025 or prior years are eligible for both the LSI and bonus. Note: We are awaiting guidance from the UNC System Office on bonus eligibility for faculty members who entered the Phased Retirement Program on July 1, 2026.
• Employees on unpaid leave of absence may be eligible for the LSI if they return to work during the 2026-27 fiscal year and meet all other eligibility criteria.
• Athletic coaches with contracts should refer to their current contract for LSI eligibility.
• The LSI is awarded regardless of current performance ratings or the presence of any active disciplinary actions. Eligible employees whose salary exceeds the maximum of the salary range for their position will receive the LSI.
• Employees who transfer from another UNC System institution or State agency to UNCW may be eligible for the LSI depending on their transfer date, whether the LSI was already implemented at the prior agency, and if they meet all other eligibility criteria.
• Public school, community college, and/or county employees who accept a position with UNCW are not considered transfers for the purposes of the LSI.

If you have questions regarding the LSI or one-time bonus, please contact the salary administration coordinator for your employee type:

EHRA employee contact: Pam Caulk at caulkp@uncw.edu
SHRA employee contact: Karen James at jamesk@uncw.edu