This information is designed to support the use of various types of non-base salary compensation known as additional pay. If a department is processing additional pay for an employee whose primary appointment is in Michigan Medicine, refer to the Michigan Medicine Compensation Navigator.

Pages in this section provide resources and advice to help departments choose when to use additional pay, how to administer it correctly, which earnings codes to use for various types of payments and best practices for documenting and approving transactions.

Why consider additional pay?

• To compensate employees who perform duties that are substantially outside the scope of the individual's position.
• Recognition of project work requiring additional responsibilities for a limited time.
• To reward exceptional performance.
• To compensate employees who perform one-time services unrelated to their primary appointment.
• Where non-base salary building makes sense for responsible fiscal stewardship.
• Provide market-competitive total compensation to support recruitment and retention of key talent.

Additional pay should not be used for:

• Bargained-for staff (unless permitted by terms of collective bargaining agreement).
• Payments to University of Michigan students, guest students or visiting scholars for prize, gift, awards or travel grants (processed through Office of Financial Aid).
• Payments for goods, advances, moving or relocation expenses, royalties or awards/prizes/gifts.(Refer to PeoplePay).
• Additional compensation for performing expected duties.