City employees will receive a $1,200 per year pay increase beginning with the June 3 pay period after Rosenberg City Council unanimously approved the raise during the Tuesday meeting.
Past pay raises were instituted by city officials after a 2017 review found that the city’s wages were lagging 13% below market value.
The city at the time made increases to the compensation plan by 3.5% by December 2017, another 1.5% by September 2018 and another 50 cent increases by February 2019, September 2019 and August 2020.
The city previously approved a $2,500 per employee increase on Sept. 7, 2021, which did not increase the compensation plan.
However, based on inflation, the Employee Benefits Committee met on May 25 and made a recommendation for city council approval of a $1,200 per year pay increase for all city employees.
The pay raise does not include a change to the compensation plan but will help employees deal with the high inflation rates and the continuous increase in Consumer Price Index, which is based on the increased cost of fuel, food and other necessities, Assistant City Manager Joyce Vasut said.
The budget will increase by approximately $120,000 for the remainder of fiscal year 2022, officials say.
Although this increase will not change the compensation plan, the compensation plan will be reviewed during the fiscal year 2023 budget process to consider changes to the plan, officials said.