Faculty Salary, Benefits, and Indemnification

The University’s fiscal year begins on September 1 and terminates on August 31. University faculty salaries for both 9- and 12-month appointments are paid in 12 monthly installments during the fiscal year. Salary checks are distributed on the last business day of each month. Salaries are reviewed annually.

Subject to the availability of funds, merit increases in salaries derived from University accounts are given to faculty members on an annual basis at the beginning of each fiscal year. Unbudgeted mid-year salary increases are not allowed, with two exceptions: increases built into grant budgets if they are included in the annual department budget at the time of its preparation or mid-year salary increases resulting from position redefinition or promotion.

A promotional salary increase generally will be given to each full-time faculty member who is promoted to a professorial rank or from one professorial rank to another. The increase is calculated on the portion of the faculty member’s salary that is paid from University accounts. The promotional increase is in addition to any annual merit increase that the faculty member may receive.

A merit increase is for performance in the previous year whereas a promotional increase is a cumulative addition based upon performance over a span of previous years. The promotional increase will take effect at the start of the fiscal year in which the promotion takes effect.

Faculty members on 9-month appointments may receive a salary supplement for conducting research during the nonstipend quarter of University faculty appointment. Funding for the salary supplement usually is derived from grants or other external sources. Faculty members and their departments are responsible for reviewing grant specifications to ensure that salary requests do not exceed the level permitted on the project. Salary requests on grant budgets must conform with University regulations governing sponsored projects. The salary supplement is calculated based on the faculty member’s University salary. A supplement can be for one, two, or three months, at a monthly level not to exceed 1/9 of the University annual salary. Under no circumstances can the supplement exceed 3/9 of the annual salary in a fiscal year.

The University provides a comprehensive package of benefits for eligible faculty members that includes health, dental, life, and disability insurance and educational assistance, most of which require that the faculty member receive a portion of his or her salary from University accounts. Current information on benefits policy, programs, and eligibility can be accessed through the University’s home page at www.northwestern.edu/hr/benefits.

All members of the faculty are indemnified by the University against liability for acts within the scope of their duties for the University, including service for another organization undertaken at the University’s request. Excluded from indemnity are acts involving a breach of duty of loyalty to the University, acts involving intentional misconduct or a knowing violation of the law, or transactions from which the individual derives an improper personal benefit.