One Purdue

Academic-year Pay Amount and Frequency Changes

Faculty, staff and graduate students on the academic-year calendar are currently paid in ten equal disbursements. With the Onepurdue system, there will continue to be 10 payments, although the increments will change.

The new system will distribute eight payments, each totaling 1/9th of the annual pay and disbursed at month-end from September to April. In order to more closely align our pay schedule with the academic calendar, a “half” payment will be issued at the end of August and May. The smaller payment will equal 1/18th of one’s annual pay. Therefore, combining August and May will complete the final 1/9 of one’s annual pay.

This graphic illustrates this plan.

A summer savings program (see below) will be launched in fall 2007 for those who would like to receive 12 monthly paychecks.


Academic-year Summer Savings Program

If you are unfamiliar with the new OnePurdue payroll system, please read the section above first.

Who can participate in the Program?

All faculty and staff members working on an academic-year (AY) calendar, can enroll in this option, which will begin with the 2007-08 academic year.

What is the Summer Savings Program?

This is a voluntary, non-interest-bearing program for academic-year faculty and staff members who would like to receive 12 monthly disbursements. The Summer Savings program will provide these individuals with a mechanism with which to set aside post-tax earnings to be distributed during May, June, July and August. The plan does not allow for 12 equal payments of an academic-year salary; it does, however, provide a savings method to help manage personal cash flow.

Why establish an AY Summer Saving Program?

Results from a November 2005 faculty survey showed there was interest in having a 12-payment option available. The Summer Savings Program is intended to accommodate this recommendation and provide an additional savings option for our AY-paid faculty and staff.

How to determine if the AY Summer Savings Program is right for you:

The Summer Saving Program will allow faculty and staff members to even out cash flow over 12 months by setting aside funds during the academic year to be paid during the subsequent summer months. It is not a means of electing a fiscal-year or 12-month payroll plan. Enrollees should first decide how much money they will need from May to August. Like other post-tax deductions, that money will be withheld from their net pay from each of the eight larger September-April payments. Kept in a separate account, this deduction will have no impact on the taxability of AY pay received during the academic year.

Enrollees will not be collecting interest on the withheld money in Purdue’s plan. As an alternative, many banking institutions are willing to help their customers establish automatic savings/transfer arrangements that would provide an interest-bearing version of Purdue’s program.

For those enrolling for the 2007-08 academic year, after-tax withholdings will begin with the September 2007 pay and end with the April 2008 pay. The Summer Savings disbursements will be made in May, June, July and August 2008.

Once registered in the program, participants must remain enrolled for the remainder of the academic year. Participants may withdraw from the program after that year.

Click here for a tool that will illustrate how the savings program would work for you. (Excel)

How and when do I enroll?

AY-paid faculty and staff members can register for the program through their business office. The registration period will be announced in May 2007. Your business office will distribute information in advance of registration period.

Where can I get more information?

For additional information about the Summer Savings program, please contact your human resources or business office.


Graduate Student Deferments


Summer Pay Changes

  • Summer pay will shift from biweekly to monthly. To make this transition, the June 22, 2007, payroll will include a pay advance for the last five workdays in June. The regular month-end pay schedule will begin July 1, when annual pay increases also take effect.
  • The new summer payroll schedule will not change the policy of paying 2.5% of one's annual salary per week (per Executive Memorandum C-26).
  • Any summer work completed in August will be combined with the first academic-year paycheck Aug. 31.
  • See a sample summer pay illustration here. (PDF)


Academic-year Payroll Deductions


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PDF files can be viewed in Adobe Acrobat Reader.