Total Rewards

Exciting News! Total Rewards Increases Base Hourly Pay for FY27

Leadership is pleased to announce that the minimum base hourly pay rate will increase to $18/hr., which demonstrates ongoing commitment to supporting employees and ensuring competitive pay as part of Rice’s Total Rewards Initiative. The Total Rewards Initiative is a strategic effort designed to position Rice as a premier employer by offering a compelling package of compensation and benefits that attracts and retains top talent.

This base hourly rate adjustment reflects leadership’s enthusiasm for meaningful investment in our workforce and aligns with the broader Total Rewards goals to enhance both pay and overall employee well-being.

By raising the minimum hourly base rate and continuing to refine our compensation strategies, we are excited to advance a culture where employees feel valued, recognized, and supported in their contributions to Rice’s mission.

The Total Rewards Initiative to increase the base pay to $18 an hour for new hires will be effective April 1, 2026. Fiscal Year 2026 pay ranges 1 and 2 will be retired effective September 6, 2026, when existing employees are adjusted to the new base pay.

FAQs: Hourly Base Pay Increase: Total Rewards Initiative

Why is the university increasing base pay for hourly employees?

The hourly base pay increase is part of the Total Rewards Initiative within the HR Excellence Portfolio, a strategic effort designed to position Rice as a leading employer. Investments have been strategically directed toward enhancing compensation, benefits, and overall employee experience, reinforcing Rice’s commitment to being an employer of choice.

Is this due to state or federal law, or is it a university decision?

The base pay increase is a proactive decision by Rice, and its continued commitment to invest in Total Rewards to attract, select, and retain exemplary employees.

Who does the new base pay apply to?

The $18 hourly base pay applies to all hourly regular and temporary staff positions.

Are any positions exempt from the new base pay?

No. There are no exceptions for staff positions; all must meet the $18 minimum base pay.

What about students working off-cycle, in grant-funded roles, or in work‑study positions?

Student employees are not included in the new $18-per-hour base pay.

Why are student employees not included in the $18 base pay?

Student employment has different benchmarks than professional staff roles.

When does the new base pay take effect?

• New hires: Effective April 1, 2026
• Existing staff: Effective September 6, 2026

Can current employees' base pay be adjusted to $18 as of July 1, 2026?

Yes, departments may adjust pay for their existing employees as early as July 1, 2026, using their own departmental budgets. The Total Rewards Initiative funding applies only to adjustments made on or after September 6.

Existing employees' base pay will be adjusted as of September 6, 2026, as part of the Total Rewards Initiative.

If I hire a new temporary employee this summer, what should their pay be?

Any temporary employee hired on or after April 1, 2026, must be hired at the $18 per hour base pay minimum. Departments should ensure this is reflected in their summer and FY 2027 budget planning.

Will current temporary employees also be adjusted to the $18 base pay?

Yes. No staff member—regular or temporary—will earn less than $18 per hour after the September 6, 2026, transition. However, the Total Rewards Initiative funding specifically covers the increase for regular staff. Departments are responsible for funding the increase for their existing temporary staff via their own budgets.

Why will the Total Rewards Initiative not fund the base pay adjustment for current temporary employees?

Per Rice Policy 413, a Temporary position is one with a specific and/or limited need and an expected duration of less than six months. Please plan accordingly to ensure temporary positions are hired at the new $18 base pay, or that you have received funding approval to transition to a regular position by July 1, 2026

How will the base pay increase be funded?

FY27:

• These increases will be funded by the Total Rewards Initiative for all units and fund types, effective September 6, 2026.
• Central will provide 1-year bridge funding in FY27 (one-time transfer to UGO) to increase compensation for auxiliary, gift, grant, designated, service center, and endowment fund types.

    
FY28:

• Central will provide new budget authority for increased compensation on the UGO fund type.
• Auxiliary, gift, grant, designated, service center, and endowment fund types must incorporate these expenses into their budget planning.

Will the increase be applied automatically, or do departments need to process changes?

The Compensation and HRIS Teams will submit the changes in iO for existing employees that will be adjusted as part of the Total Rewards Initiative.

How will I know if my pay is impacted?

The Compensation Team will communicate the change with the individual employee and their line manager via email.

What are the new pay ranges?

Visit the Compensation page of the KnOWLedge Cafe for the FY 27 pay ranges. Pay ranges will take effect on July 1, 2026. FY 2026 pay ranges 1 and 2 will be sunset effective September 6, 2026.

Will the base pay increase cause adjustments to pay ranges?

New FY27 pay ranges take effect July 1, 2026. Because the existing FY26 ranges (1 and 2) will not "sunset" until September 6, there will be a brief period of overlap between new hires and existing staff. View the new FY27 pay ranges on the KnOWLedge Cafe.

Will this lead to pay compression issues?

The compensation team will review the impacts of the hourly base pay increase on compression and pay equity, and will work with individual departments.

Does this affect merit increases or future raises?

This adjustment is separate from the annual merit or performance review process. Eligibility for future increases will continue to follow the University's established compensation guidelines.

Will this affect overtime eligibility?

No, non-exempt (hourly) employees will still receive overtime pay for hours worked over 40 per workweek in accordance with the Fair Labor Standards Act (FLSA).

Division of Operations, Finance & Support Total Rewards Update Announcements

March 27, 2025 Total Rewards Initiative: Rice’s Commitment to Competitive Pay & Benefits

August 28, 2025 Investing in What Matters Most: Our People

January 28, 2026 What is Rice's FY27 Budget Outlook?

• Faculty and Staff Support: Rice continues to invest in equitable pay, benefits, and retirement programs through the Total Rewards program. These commitments include increasing the minimum wage for hourly employees to $18 per hour and reducing the employee's share of dental insurance costs. Rice will also provide a 2% merit pool for FY27 to help align salaries to the market.

The Total Rewards Initiative, part of the HR Excellence Portfolio, is a strategic initiative positioning Rice as a premier employer, enabling the attraction, selection, and retention of excellent employees. This will be achieved by providing Rice employees with a competitive and compelling total rewards package.

The concept of total rewards encompasses the complete range of compensation and benefits that an employer offers its employees. It includes base salary and a broad spectrum of tangible and intangible rewards, such as health insurance, retirement plans, bonuses, career development, paid time off, and more.

2023-2024 Total Rewards Project

We are excited to share that the total rewards study, which benchmarked Rice's staff job structure and employee benefits to those offered by peer universities as well as local and national employers, was completed on 12/11/23. This led to a new job architecture implemented on 1/1/24 with new levels providing employees with opportunities for growth and development. The total rewards initiative also had a benefits review, which included an employee survey, that collected data from Rice employees to capture benefits sentiments. Leadership analyzed the survey results and wanted to provide Rice employees with a comprehensive and competitive total rewards package that not only attracts skilled professionals but also boosts employee morale and retention.

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