Indiana's pay for performance model boosts paychecks three to eight percent

By: NewsCenter 16 Staff Email
By: NewsCenter 16 Staff Email

Governor Mike Pence announced on Tuesday that Indiana state employees would receive performance based raises starting with this week’s paycheck.

Former Indiana governor, Mitch Daniels, authorized the three to eight percent increase last December before leaving office. The decision was made to recognize state employees for their work last year, but Governor Pence says he plans to continue awarding the raises based on excellent worker performance.

State employees were given performance reviews and rated as “outstanding,” “exceed expectations,” “meet expectations” and “do not meet expectations or need improvement.”

Approximately 10 percent of state employees were evaluated as “outstanding” and will see an eight percent increase, while 75 percent of the state’s employees were reviewed as meeting expectations will receive three-percent bump.

Indiana will spend an additional $38 million to cover the increases as part of the state’s pay for performance model which has been in place since 2006.


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