Compensation Overview

This information is designed to help employees understand how pay increases are calculated, teach them how to calculate their own pay increase and calculate the amount of their regular paycheck.

Many schools pay their employees year-round even though they physically work only 10 months per year (the 10 months of pay is spread out over 12 months).

The up-side to this scenario is that employees receive a paycheck year-round rather than go two months in the summer without pay. Also, benefits can be deducted each month, and employees don’t have to pay premiums for health, dental, life and other insurance out of pocket.

The downside to this scenario is that employees find it difficult to understand why they work 80 hours in two weeks, but the pay for that period is for less than 80 hours. Districts pay a little less to employees each payroll because they are saving up some of their paycheck to be paid out to the employee during the summer.

This site will describe some of the terms listed below and also help employees understand how to calculate what they make annually and how that pay is distributed.

Compensation Terms:

• Pay Grade
• Job Family
• Minimum, Midpoint, Maximum
• Annualized Pay
• Pay Increase Calculation