Annual Performance Appraisal Program

Performance-based Merit Pay

When an employee is above mid-point and they have passed their probationary period a performance-based merit pay model is used. The purpose of the performance-based merit pay program is to recognize and reward meritorious performance.

While this program is designed to provide a tool to move employees who have demonstrated above average performance from the midpoint toward the maximum of their salary ranges, there are also other options available to award meritorious performance – including a one-time bonus or professional development opportunities.

Note: Employees who are currently at the top of their salary range are not eligible for ongoing salary increases. However, they can be rewarded for meritorious performance through a one-time bonus, extra vacation time, or professional development opportunities.

Merit pay is the responsibility of the Department.

  • HR provides a spreadsheet to Departmental Administrators at the beginning of each year.
  • Department Administrator completes the performance appraisal.
  • Administrator determines rating 0 – 3, reviews with Staff Member and determines % increase 0 – 3%.
  • Excel Spreadsheet is completed and return to HR.
  • Administrator completes an electronic Personnel Action Form (ePAF) to initiate increase

 Merit Ratings

0 – Meets job requirements 0%
1 – Above average performance up to 1%
2 – Excellent performance up to 2%
3 – Extraordinary performance up to 3%


The percentage must be an average of 2% across the department. You can grant between 0 – 3%, not above. It can be less than 2% if you only have one employee in the merit situation.

Example: Two eligible employees

High Performer Jill $50,000 per annum
Steady Eddy Jack $40,000 per annum

2% of total wages of $90,000 = $1,800
Distribute total of $1,800 across one or both employees.
Must match Rating percentage.

Payments are retroactive to July 1st, percentage and amount of increase must be indicated on the ePAF.