Annual Basis Conversion
Overview: On occasion, a department may decide to change the annual basis of a Faculty or OA position: a 12-month to a 9-month appointment, or a 9-month to a 12-month appointment. Departments will need to know conversion formulas. In addition, it will be important to convey the information and change in monthly salary amount to the employee.
The math is as follows:
9-Month to 12-Month Appointment
Annual Rate÷ 9 X 11
$36,000 ÷ 9 X 11 = $44,000
Monthly pay: from $4,000 to $3,666.67
12-Month to 9-Month Appointment
Annual Rate ÷ 11 X 9
$44,000 ÷ 11 X 9 = $36,000
Monthly pay: from $3,666.67 to $4,000
Q & A
Q. Why is the monthly salary less for the 12-month appointment than it is for the 9-month appointment?
A. Because of one month's vacation pay on the 12-month appointment.
$4,000 X 11 months = $44,000
The employee receives less each of the eleven months to pay for the salary in the 12th month.