Merit pay increases for university employees remained a top priority for President Ray Watts throughout the fall semester after UAB’s July announcement that the decision for a merit pool would be deferred while financial uncertainties were assessed and addressed. On Dec. 18, 2025, the University of Alabama System Board of Trustees recognized UAB’s financial strength and approved a budget revision to support a merit pool for the current fiscal year.

With this year’s pool — which will be effective Jan. 1, 2026 — Watts has now delivered merit-based pay increases to employees eight out of the last nine years, with the COVID FY2020/21 being the only exception.

“Our employees are what makes UAB special and the reason we fulfill our vital mission to improve the lives of people in Birmingham and Alabama, across the country, and around the world,” Watts said. “I am incredibly pleased and honored to again prioritize our budget in a way that rewards their hard work and many contributions to those we serve.”

President Ray WattsA UAB Health System merit pool has already been announced and will also be implemented in January.

“Part of the reason we are able to provide a merit pool this year is that our administration, faculty and staff — which comprises more than 35,000 people — have remained fiscally responsible throughout the year, making sure that open positions we fill and expenses we incur are mission critical,” Watts said. “I continue to encourage each of our employees to maintain a financially conservative posture so we can maintain our strength as an institution."

President Watts also arranged for employees to enjoy extra holidays this year. In addition to the standard holidays observed on Dec. 25 and Jan. 1, employees in Workgroup A and non-clinical Workgroup F will also observe additional closures on Dec. 24 and 26 and Jan. 2, and employees in Workgroup C and clinical faculty will observe additional closures on Dec. 26 and Jan. 2.

“Our faculty and staff demonstrate a commitment to our mission and to improving the lives of our students, patients the community and each other every day,” Watts said. “Their dedication is critical to our continued success as a world-renowned university and academic medical center, and I hope these extra holidays will serve as a reminder of our appreciation and a valuable opportunity to relax and enjoy the holiday season.”