General Guidelines for Administrative Stipends

An administrative stipend may be provided only when an employee is temporarily assigned, for a period of at least 30 working days, responsibilities of a higher level position or other significant duties, not part of the employee’s regular position. Represented staff are eligible for stipends only as outlined in the respective collective bargaining unit agreements. Stipends must have specific beginning and ending dates.

The stipend amount cannot exceed 25 percent of the employee’s base salary and must be approved in accordance with PPSM-30. The payment of an administrative stipend is intended to be temporary and generally should not exceed twelve months; however, if necessary, one extension of up to an additional 12 months may be approved in accordance with PPSM-30. An extension of an administrative stipend beyond 24 months is an exception to PPSM – 30 policy.

UC Merced Guidelines for Administrative Stipends

• An administrative stipend may be paid when an employee is temporarily assigned a substantial portion of the duties of a position in a higher grade or classification, or when other significant new projects or duties, that are not part of the employee’s regular position, are assigned.
• Assignment of temporary duties or responsibilities at the same or lower level may warrant an administrative stipend; however, to meet eligibility in such cases, the employee must assume a minimum of 20% (8 hours) additional duties per week for at least 30 working days. If you have questions regarding the level or percentage of duties being assumed, please contact HR Compensation for assistance.
• The effective date for the administrative stipend will be effective the first available pay cycle UC Path deadlines are met and after the stipend is approved and finalized. Stipend requests should be submitted prior to, or immediately upon, the assumption of the higher level duties and/or assignment(s).
• Employees remain in their current classification for the duration of the administrative stipend and are subject to the policies or collective bargaining agreement terms applicable to that classification.
• Supervisory responsibilities are not normally assigned on a temporary basis to employees covered by a collective bargaining agreement. Consultation with Human Resources is advised before temporarily assigning supervisory responsibilities to exclusively represented employees.
• Stipends are NOT salary base building, as they are temporary and not based on market salary data. No formal Classification or Compensation review is conducted for stipends awarded for less than 14.00%. Should the temporary duties from the stipend become permanent responsibilities; a formal reclassification request will be required, which consists of a full Classification and Compensation review to assess the impact on classification and to assess for proper market-based compensation.
• PPSM-30 allows for stipends up to a maximum of twenty-four (24) months. Any stipends in excess of this timeframe must be approved via the campus Exception to Policy review and approval procedures.

Eligibility and Compliance Assessment

• Upon receipt of a Stipend request, Compensation will conduct an assessment for the purposes of determining various eligibility and compliance criteria under Collective Bargaining Agreement (for represented employees) or PPSM-30 (for non-represented employees).
• If any eligibility or compliance concerns arise, HR Compensation will contact the requesting department to advise accordingly.
  • Based on that assessment, if a stipend is inappropriate due to contract or policy, Human Resources will recommend alternative methods (such as STAR Awards), if available, to facilitate the request.
• It is advised that stipends not be discussed with employees prior to receiving eligibility confirmation from HR Compensation.
• Stipend Calculations for Eligible Employees (following eligibility assessment)
  • For stipends under 7.00%, the department has full discretion in setting the amounts. There will be no monetary Classification and Compensation review of these stipends unless requested by the department.
  • For stipends ranging from 7.01 to 14.00%, the requesting department consults with the AVC of Human Resources, provides the rationales, and negotiates the stipend. There will be no monetary Classification and Compensation review of these stipends unless requested by the department.
  • For stipends in excess of 14.00%, the AVC of Human Resources refers the request to Classification and Compensation for a full monetary review and recommendation.