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.