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IU employees get up to 3% raise this year

By Aubrey Wright

Posted June 20, 2024

The change goes into effect July 1. (Steve Burns, WFIU/WTIU News)

Indiana University employees will see up to a 3 percent salary increase on July 1.

The Board of Trustees approved the raises as part of IU’s $4.5 billion operating budget for fiscal year 2024-2025. At the board’s meeting June 13, interim vice president and chief financial officer Jason Dudich said staff salary and wages make up 58% of IU’s budget. The university’s operating budget grew by $238 million.

The university reported over the past five years, salary and wage increases at IU averaged 2.2%.

The Bureau of Labor Statistics reported inflation increased 3 percent over the last 12 months.

The university is also assessing changes to the Fair Labor Standards Act. On July 1, the new federal salary threshold for overtime-exempt employees — employees that generally earn a salary and don’t qualify for overtime pay — will increase.

Next month the yearly threshold will rise from $35,568 to $43,888. On January 1, 2025, the salary threshold will rise again to $58,656.

Dudich told the trustees potentially thousands of IU employees will be affected by the change, adding up to about $300,000 in compensation costs.

Those affected are overtime-exempt employees doing executive, administrative or professional work defined by the U.S. Department of Labor, sometimes considered “white collar” jobs. These salaried employees could receive raises or employers could decide to reclassify their roles to qualify for overtime pay.

Aubrey is our higher education reporter and a Report For America corps member. Contact her at aubmwrig@iu.edu or follow her on X @aubreymwright.

This story was updated to clarify IU's estimated compensation costs related to the Fair Labor Standards Act.