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Explain Merit Salary Adjustment

Merit Salary Adjustment (MSA): The cost factor resultant from the periodic raise in salaries paid to the personnel occupying authorized positions. The personnel usually receive a salary raise of 5 percent per year up to the upper salary limit of the categorization, contingent upon the employing agency certifying that the employee’s job performance meets the stage of quality and quantity expected by the agency, allowing for the employee’s experience in the position.

Merit salary adjustments for employees of the California State University or the University of California and they are determined in accordance with rules established by the regents and trustees, correspondingly.

Funding usually is not provided for MSAs in the budget; any extra costs incurred by a department generally must be absorbed from within the existing resources.

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