Additional Compensation Guidance
What is Additional Compensation?
Additional Compensation is salary paid in excess of an employee’s base salary for effort that is performed in addition to or outside of effort spent on normal job duties.
Additional Compensation on Federally Funded Awards
- Principal Investigators (PIs) and Co-Principal Investigators (Co-PIs) are ineligible to receive additional compensation above IBS on federal or federal flow-through grants.
- Non-PI faculty and monthly paid employees may be eligible for additional compensation above IBS upon prior written approval from the sponsor. The approval should outline the person/people receiving the Additional Compensation and a detailed explanation for why it is necessary.
- Hourly paid employees are ineligible to receive Additional Compensation. They are eligible for overtime pay for activity exceeding 40 hours per week.
Additional Compensation on Non-Federally Funded Cost Reimbursable Awards
PIs and Co-PIs may be eligible for additional compensation if the sponsor has explicitly approved such payments. The approval should outline the person/people receiving the Additional Compensation and a detailed explanation for why it is necessary.
Additional Compensation on Non-Federally Funded Fixed-Price Awards
Obtaining sponsor prior approval for additional compensation is not required on non-federally funded fixed-price awards because they are agreements where the contractor pays a firm price for the agreed-upon work, regardless of the ultimate cost to complete the project.
All Additional Compensation must follow the University of Maine System’s Human Resources Operations Standard Operating Procedures.
What is Institutional Base Salary (IBS)?
For the purposes of calculating additional compensation on sponsored projects, IBS is defined as the annual compensation paid by the University for an employee’s appointment. IBS is established by appointment letters, endowment letters, and salary change letters (plus contractual raises).
|Regular Salary||Based appointment letters||Earn Codes: 001|
|Endowed Stipends||endowed/named chairs and professorships||Earn Codes: 691|
Most other payment types are not included in IBS. Some common examples include:
|Additional Compensation||Supplements for work outside regular duties or hours||Earn Codes: 210|
|Summer Salary||Summer supplements for chairs or research||Earn Codes: 201, 211, 212|
|Incentive Pay||Incentive pay for wellness program or other benefits||Earn Codes: 214|
|Reimbursed Expenses||Moving or housing reimbursements||Earn Codes: 213, 215, 814|
|Temporary Pay or Stipends||Salary or supplements with set end dates||Earn Codes: 003, 680, 690|
Can academic year faculty earn Additional Compensation for work during summer months?
Academic year faculty may be eligible for Summer Salary, a type of Additional Compensation earned through work conducted in the months outside of their regular appointments.
- Faculty with 9-month appointments may earn up to 3 months of Summer Salary (3/9ths of their IBS) each calendar year. Exception: NSF research is limited to 2 months each calendar year.
- Faculty with 10-month appointments may only earn up to 2 months of Summer Salary (2/10ths of their IBS) each calendar year.
Can professional staff with non-fiscal year appointments earn Additional Compensation for work conducted in months outside of their regular appointments?
Salaried non-fiscal year staff may be eligible for Additional Compensation, following rules similar to Faculty Summer Salary.
- Professional staff with 10-month appointments may earn up to 2 months of Additional Compensation (2/10ths of their IBS) each calendar year.
- Professional staff with 11-month appointments may only earn up to 1 month of Additional Compensation (1/11th of their IBS) each calendar year.
Are faculty on sabbatical eligible for Additional Compensation?
Federally-funded PIs and Co-PIs are not eligible for additional compensation.
Other faculty on sabbatical may receive additional compensation as long as it does not exceed IBS and along with approval from the sponsor.