Contact: See Memorandum for appropriate contacts or email SystemComp@northcarolina.edu
Attachments: Administrative Memorandum on Implementation of the 2026 LSI and Bonus (7/9/26);
2026 Budget Frequently Asked Questions and Supplemental Guidance (rev. 7/16/26) ** Document will be updated as additional information is available. **
On Tuesday, July 7, Governor Stein signed the new state budget, effective July 1, 2026. The System Office released a memorandum on July 9 providing guidance on the Legislative Salary Increase and Bonus implementation.
CORRECTION: In the memorandum of July 9, Section IX (page 6) we stated “Employees whose last workday is on or prior to June 30, 2026, are not eligible for the salary increase or the one-time bonus…” This statement is only partially accurate. Those who separated on or prior to 6/30/26 are NOT eligible for the LSI, as they must have been actively employed on both June 30 and July 1. However, individuals whose last workday was 6/30/26 and were in an active pay status on 6/30 ARE eligible to receive their corresponding one-time bonus.
An FAQ document with additional guidance is found at the link at the top of this page to help address areas of ambiguity. Please review these items carefully. Note that this document and guidance is a work in progress. As we continue to address issues as they come up — and learn more from our agency partners at OSHR, OSBM, and OSC — this guidance will be updated accordingly. Please continue to submit your questions and unique situations as they arise. Some questions require additional investigation and feedback from OSHR and OSBM.
Thank you for your thorough review and assessment of these unique situations and your diligence in ensuring that staff are paid accurately and fairly in the most efficient manner possible.
— Message from 7/2/2026 follows —
While the General Assembly has released its proposed budget, the appropriations process is ongoing and the legislation has not yet been finalized. You can find the bill text and committee report here. We will continue to monitor the budget as it moves through the legislative process and provide updates as they become available.
- Committee Report – The Joint Conference Committee Report on the Current Operations Appropriations Act of 2026 for Senate Bill 257, dated 6/30/2026
- SB 257 Bill Text – The full Appropriations bill text can be found here.
If proposed salary adjustments included in the proposed bill become law, further instruction will be shared as soon as possible by the UNC System Office, following guidance from OSBM and OSHR.