Salary Calculations

Salary Verification

Salary information must be verified by viewing the "State and Research Base by Dept or Employee 790#" report in Info Griz or the NBAJOBS form in Banner. If a Research Base is established, it must be used on all externally sponsored activities.

When budgeted salaries reflect more than a typical 3% cost of living increase, acceptable documentation for higher salary rates includes:

  • pending Research Base application,
  • a note regarding a merit increase (from the chair, dean, PI, SPS), or
  • a note from the Dean/Chair/XO for something like  a change in contract status, career ladder, strategic pay, etc.

Academic Faculty - 9-month

AY Salary - 9 month contract paid over 10 pay periods  

Academic Year Salary:

Base Salary / 190 = Daily Rate (190 is average number of days in academic year)

Daily Rate x 72 = Summer Salary (72 is average number of days in summer session)

NSF will only allow 2 months of salary.  Although it used to be restricted to summer salary only, they now allow the 2 months to be requested any time during the calendar year.  If a sponsor will allow more, we request it.  NSF is calculated by taking the AY base, dividing it by 9, and multiplying the result by the number of months desired on the project.

NIH often cites person months.  This is a helpful link to the NIH usage of person months FAQ, with a downloadable calculator under Q2.

Summer Salary

Summer salary is calculated using  a daily rate, rather than a monthly rate.  The following example is for faculty who are on an academic year.  In order to come up with a summer base for each,  the AY base is reduced to a daily rate.  This is done by dividing the AY base by 190, the number of business days during the academic year at the University of Montana.  The daily rate is then multiplied by 72, the number of business days during the summer outside of the academic year.  This gives us the summer base.  That is then multiplied by the percent effort for the summer.   See the examples below:

Dr. Smith
AY Base:  $102,486
Summer Base:  $102,486/190*72 = $38,837
% Effort on Project During the Summer:  75% (2.25 summer months)
Salary Requested:  $38,837*0.75 = $29,128

Dr. Jones
AY Base:  $56,650
Summer Base:  $56,650/190*72 = $21,467
% Effort on Project During the Summer:  75% (2.25 summer months)
Salary Requested:  $21,467*0.75 = $16,100

Hourly Staff

Staff are typically on a Fiscal Year employment in that they work 12 months a year.  To find an hourly rate use the following formula: 

Base Salary (Fiscal Year) / 2080 = Hourly Rate

Back into Salary Calculation

Total Amount to work with: $21,690

Fringe Rate is 25%

Divide to get Salary

21,690 / 1.25 = 17,352 Salary

Multiply to get Fringe

17,352 *.25 = 4,338

Double Check

$17,352 + $4,338 = $21,690.00