Lump 'merit pay' bonus planned in June for state employees | Arkansas Blog

Lump 'merit pay' bonus planned in June for state employees

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The state Finance and Administration Department today gave notice that merit pay bonuses for qualifying state employees would be paid June 29.

Rising state tax revenues enabled finding the lump sum bonuses, Deputy DFA Director Tim Leathers said. Unlike past years, however, the lump sum payment won't be built into pay as an ongoing permanent pay increase for classified employees (the bulk of state employees).

The bonuses — based on evaluations of employees that have been made through the year — will range from 1 to 3 percent and cost, counting Social Security and Medicare matches, $24 million. About $9 million will come from state general revenue, the rest from federal money and other state money taken off the top for certain agencies from tax collections.

Here's the notice. It will be interesting to see how the dollars are distributed relative to pay. Three percent is worth a lot more to a $100,000-a-year employe than to a $30,000-a-year worker.

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