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State Employees Set For Pay Increase In 2012

Roughly 90 percent of state employees will be getting a pay increase in 2012.

Mitch Daniels

Photo: Indiana Public Media News

Governor Mitch Daniels says the legislature budgeted for this year’s raises.

State employees will receive pay increases ranging from two to six percent based on performance evaluations. In 2009 and 2010, state employees didn’t receive a raise due to economic belt-tightening in state government. At the beginning of 2011, they received an average increase of a little more than one percent.

Governor Mitch Daniels says the legislature budgeted for this year’s raises and they had nothing to do with recent revenue forecasts that showed an improving economy.

“It’s unique in America, by the way. No other state I’m aware of has a pay-for-performance system. And the best employees in Indiana state government deserve the six-percent increase that they have earned by excellence in what they do,” he says.

The governor also reinstated a 15 dollar, bi-weekly matching contribution to state employees for retirement accounts. That match had been suspended in 2010. The pay increases will be effective in February.

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