Non-union employees at the University of Delaware will have to take a 5% pay cut for the remainder of the fiscal year, due to the school’s projected $250 million financial deficit brought on by the COVID-19 pandemic, reported The Delaware News Journal.
To compensate for the financial deficit projection, the pay cut will come in the form of nine furloughed days: three days before Thanksgiving, three before Christmas, and three days at the employees’ discretion.
The salary reduction will also be distributed equally through paychecks, starting Nov. 1 until the end of June 2021.
Employees were offered a voluntary retirement option two weeks ago when the announcement was made. Since then, 138 employees have expressed interest in early retirement, and will receive final approval today.
Over the summer, senior administrators at the university had already taken a 10% pay cut. This 5% cut is in addition to that. Some units however, may face a salary reduction greater than 5%, according to the university message sent to faculty and staff. Future workforce reductions, restructuring and other cost-saving measures could be announced soon, as well.