We have completed our first round of compensation negotiations and have agreed to our first Memorandum of Settlement, a two-year agreement effective May 1, 2026. It sets out salary increases for May 1, 2026, and May 1, 2027, along with a number of other compensation-related items.
You can read the full settlement or read on here for an explanation of each item.
How the compensation envelope works
Here’s a reminder of how the new compensation envelope works.
The compensation envelope is the total amount of money available for salary increases. It’s set as a percentage of the total base salaries of all eligible staff.
For example, if eligible staff salaries totalled $1,000 and the envelope was 3%, $30 would be available for increases.
That 3% can be divided into three parts:
- Across-the-Board Increase (ATB): A base salary increase that all eligible staff receive.
- Equity Pool (EP): Additional increases for staff whose April 30 salary is below the April 30 job value.
- Flexible Increase Pool (FIP): A portion that can be used for other agreed-upon purposes, negotiated each year.
For example, the 3% might be split like this, with percentages determining how much money goes into each pool:
- 2% of total base salaries allocated for Across-the-Board Increases
- 0.5% of total base salaries allocated to an Equity Pool
- 0.5% of total base salaries allocated to a Flexible Increase Pool
Then each pool is applied to eligible staff salaries:
- For ATB, this is straightforward: If ATB is 2%, all eligible staff receive a 2% base salary increase.
- For EP and FIP, the percentage does not equal individual increases; it sets the size of the pool.
- The EP pool is allocated to staff below job value using a formula that reflects how far below job value each salary is.
- The FIP will be allocated based on detailed guidance which will be developed in advance of the 2027 process.
The 2026–2028 settlement
The first two and last two items are procedural, so we’ll skip those.
3. Salary range adjustment
"The University agrees to adjust the University Support Group (USG) job grades on each May 1 during the Term, as follows:
On 1 May 2026, increase the salary ranges by 2.6%.
On 1 May 2027, increase the salary ranges by 2.5%."
The salary range adjustment is the increase to job value (and the 80% and 120% mark) of each USG. It changes the salary structure, not anyone’s actual salary.
4. Salary increases
"The University agrees to provide a Compensation Envelope to support the calculation of individual salary increases each May 1 during the Term, as follows:
On 1 May 2026, Compensation Envelope of 3.6%.
On 1 May 2027, Compensation Envelope of 3.5%."
How the compensation envelope is allocated and translated to individual increases is detailed below. (See more about how the Compensation Envelope works.)
"The University agrees to allocate the Compensation Envelope across the three components, as follows:
|
Component |
1 May 2026 |
1 May 2027 |
|---|---|---|
|
Across-the-Board (ATB) Increases |
2.6% |
2.5% |
|
Equity Pool |
1.0% |
0.5% |
|
Flexible Increase Pool (FIP) |
0.0% |
0.5% |
The application of the Across-the-Board (ATB) Increases and distribution of the Equity Pool shall follow the MoA provisions. The Flexible Increase Pool (FIP) shall be distributed to eligible Staff in accordance with the allocation model commencing in the second year of the Settlement."
Let’s take these components one by one:
Across-the-Board Increases
The percentage allocated to the ATB sets the increase for all eligible staff. This year, that increase is 2.6%, effective May 1. This means that all eligible staff will see an increase to their base salary of 2.6%.
Staff on temporary contracts less than three years but employed prior to January 1 may be eligible for the ATB increase on May 1, subject to satisfactory performance and departmental affordability. If applicable, the department will initiate the ATB Increase through a request to Human Resources.
Note: Staff whose roles are no longer eligible under the MoA will hear directly from the University about salary increases, but it’s our understanding that they will receive the same increase this year.
Individual Equity Adjustments
Unlike the ATB, the percentage allocated to the equity pool does not describe anyone’s individual increase. It sets the total amount dedicated to equity adjustments for staff paid below job value, which is then applied in accordance with the formulas set out in subsection 8.3.1.2. of the MoA, based on how close an individual is to job value.
This year, we’ve allocated a sizeable portion of the compensation envelope to the equity pool to address the large number of staff who have remained below job value with no mechanism in recent years to move them toward the salary midpoint.
Staff who have a base salary on April 30 which is below the new May 1 job value and are eligible for the ATB, will receive an individual equity adjustment. More than half of staff are anticipated to meet these criteria. The amount of the adjustment will vary depending on where an individual falls within the salary range, with relatively smaller increases for those near job value, and larger increases for those further below it. These increases are in addition to the ATB. Staff with an April 30 base salary already at or above the May 1 job value will not receive an individual equity adjustment.
Flexible Increase Pool
Our priority this year, based on staff feedback and principles of fairness and equity, was to focus on supporting staff below job value through the equity pool. At the same time, staff consistently raised concerns about the absence of any mechanism to support further salary progression for those at or above job value or to recognize sustained contribution and development within roles. So, although we have not dedicated funds to the Flexible Increase Pool in the first year of the agreement, we did allocate half a percent of next year’s envelope to address these concerns.
Because the FIP is a new mechanism, detailed guidance for how these funds will be allocated will be developed over the coming year. UWSA will play a role through the Staff Relations Committee to review and provide recommendations on this guidance, with the goal of promoting transparency, fairness, and consistency across units before the pool is used for salary increases effective May 1, 2027. Further details will be developed and shared over the next year.
4.1 FIP Allocation Model
"Staff who are eligible for an ATB Increase may also receive a salary increase through the FIP on May 1, 2027.
The total FIP shall be split across organizational unit pools and each unit’s pool will be calculated by applying the FIP component of the Compensation Envelope (as set out in section 4 above) to the unit’s aggregate April 30, 2027 base salaries.
The allocation of a unit’s pool among eligible Staff shall be determined at the discretion of the senior executive responsible for the unit (or their designate), taking into account the funding available. In determining individual allocations, consideration will be given to factors such as sustained contribution and position within the salary range, with a view to supporting appropriate salary progression and maintaining internal equity.
Recognizing that the FIP represents a new mechanism, the University agrees to develop and confirm the detailed guidance needed to support senior executives’ appropriate application of the FIP across eligible Staff in their units, and to review and receive recommendations on this guidance from the Staff Relations Committee (SRC)."
4.2 Pay advices
"The University shall not generate or distribute individualized communications detailing the specific calculation of the salary increases. Staff shall access their Workday record for confirmation of their updated base salary."
You’ll no longer need to access a document through Workday to see the details of your salary changes. You will be able to see your updated salary directly in Workday once the increase is processed by HR. We’ll let members know when this is ready!
To get your new compa-ratio, divide your new salary by the 2026–2027 job value for your USG, then multiply by 100.
5.1 Staff Excellence Fund
The Staff Excellence Fund funds projects and programs that support staff engagement and development, and a healthy workplace, including the Waterloo Staff Conference, years of service recognition, Keeping Well @ Work, and a wide range of workshops, events, and staff fitness programs—many of them initiated and run by staff members.
The value of the SEF is increasing by $50,000 this year, and unused funds will now roll over to the following year, which will allow these great programs to continue and create more room for new initiatives to support staff growth and wellbeing. In particular, the Staff Relations Committee will consider a new professional development stream of funding for staff, which could support staff in attending workshops, courses, professional conferences, or other forms of skills enhancement relevant to their roles.
The SEF Committee, which is a UWSA committee populated by members that reviews staff-led SEF proposals, has made recommendations for improving and clarifying the use of the fund, which will form part of this review.
"The University will contribute $300,000 per annum to the Staff Excellence Fund (SEF) during the Term, for which funds will be allocated through the current, established processes. Any unspent SEF allocations at the end of a fiscal year will roll over to the following fiscal year and will be available in addition to the annual $300,000 allocation. Further, the parties will commit to a review of SEF governance, guidelines, and administrative processes through the SRC by September 2026. This review will focus on improving clarity, transparency, and awareness of the Fund, while ensuring its ongoing effectiveness and sustainability. Any detailed changes related to program structure, eligibility, funding streams, communication, or the management of recurring initiatives, including consideration of professional development as a new funding stream, will be developed collaboratively through SRC."
5.2–5.4 Policy updates
A top bargaining priority this year was improving staff working conditions, and we reached agreement to jointly recommend policy and guideline changes through the Staff Relations Committee. Some considerations include:
- Policy 6 – Improving access to vacation in the first year of employment, aligning vacation administration for permanent and contract staff, and adjusting the vacation year.
- Expanding the permitted uses of paid emergency days to better reflect staff personal needs.
- Policy 23 - Increasing the number of sick days for contract staff on appointments of less than two years, whose current sick day entitlement is insufficient, sitting at just six days per year. Increasing the number of days contract staff can receive paid time off protects all staff, as it reduces the pressure on contract staff to choose between staying home to recover or coming in to work sick to ensure no loss of pay, potentially spreading illness to other staff.
- While the items above can be advanced by the UWSA through SRC, changes to the number of sick days relate to Policy 23 and require coordination with the Faculty Relations Committee (FRC). The UWSA is committed to addressing this for contract staff.
The vacation items still need to go through SRC to make updates to the policy. Once that happens, the changes to vacation will be communicated to staff with as much notice as possible and no one will lose any vacation entitlement because of any potential future changes to policy. We’ve heard from staff that aligning with the school year would help with scheduling. SRC will look at improvements to the vacation policy through a health and wellness lens, including timing and access to vacation, access for different types of staff, and how changes are communicated.
5.2 "The parties will jointly request that the SRC amend Policy 6: Vacation – Staff and will recommend to their respective SRC members that the SRC will establish a Terms of Reference for a policy development and amendment committee relative to Policy 6: Vacation – Staff. The parties will recommend to the SRC that this work will include proposing improvements to access to vacation in the first year of employment, aligning the two existing administrative methodologies for Staff with indefinite and definite term positions into a single, consistent approach, and adjusting to a September to August vacation year for Staff with indefinite term positions."
5.3 "The parties will jointly request that the SRC update the Emergency Leave guidelines effective September 1, 2026 to maintain paid emergency leave at three (3) days per calendar year while allowing Staff (with indefinite term positions or those with a definite-term position of one year or longer) to use these days for a broader range of personal needs."
5.4 "The parties will jointly request that the SRC and FRC increase the number of paid sick days for full- and part-time employees with an appointment duration of more than three months but less than two years in Policy 23: Eligibility for Pension and Insured Benefits."
5.5 Vacation exchange program
"The Vacation Exchange Program, which provides a one-time salary adjustment of 2% in exchange for one week (5 days for full-time regular employees) of vacation for each year of participation (with a declared retirement date of no later than the first of the month coincident with or following the month the employee turns 71), continues to be in place to April 30, 2037 (replace April 30, 2034) for retirement on or before May 1, 2040 (replace May 1, 2037)."
This is a standard component of our compensation settlements. All this does is update the dates.
5.6 Health Care Spending Account
The negotiation team carefully considered the inclusion of a Health Care Spending Account (HCSA), informed by broader discussions about the long-term sustainability of employee benefits and concerns from many staff members about equity with faculty in relation to health benefits, particularly since faculty were granted an HCSA through arbitration in their 2024–2027 settlement.
It was also important that staff not be excluded from benefit mechanisms that have been extended to other employee groups, and as a result, the HCSA for staff was negotiated for the duration of this agreement, consistent with the approach taken for faculty. The HCSA will mirror FAUW's, and more details will be shared once it's set up with GreenShield, which should be within 90 days.
Looking ahead, the UWSA’s goal is to continue advocating for a comprehensive benefits plan with strong core coverage that meets staff needs over the long term.
"A Health Care Spending Account (“HCSA”) in the amount of $300 per policy year, shall be provided to non-retired Staff who are members of the group benefits program, effective 1 May 2026. The HCSA will be paid for by the University and administered by the extended health and dental benefits provider, GreenShield. The parties acknowledge that the Employer and GreenShield require time to implement the HCSA and expect it to be available within 90 days of finalizing the Memorandum.
The Employer shall make reasonable efforts to implement the foregoing within the timelines agreed upon; however, delays caused by factors beyond the Employer’s control shall not constitute a breach of this Memorandum."
6. Implementation
"Salary adjustments will be effective May 1 of each year. Retroactive adjustments, if applicable, will be paid as soon as practicable."
The university needs some time to calculate the Individual Equity Adjustments, so you’ll see a retroactive payment on your June paycheque.
"The parties acknowledge that the pay position for Staff will not fall below the 80% minimum of the salary range for their position, pro-rated for those with a Full-time Equivalency of less than 1.0, and that any adjustments required to maintain this minimum will be implemented outside of, and will not be part of, the Compensation Envelope. The parties agree to include a clause to the MoA to this effect, at the next opportunity."
This ensures that if the range adjustment results in someone’s salary being below 80% of job value (if they’re recently hired and not eligible for this year’s ATB, for example), they will receive an increase to ensure they don’t fall below 80%.
We will continue to keep members informed as this agreement is implemented and as policy work moves forward through SRC.
We also thank members for their input throughout this process, particularly during a period of significant change with the new Memorandum of Agreement and this updated settlement framework.
Finally, we are immensely grateful to the UWSA staff and elected representatives who supported this work.