Purpose:

The purpose of this bulletin is to inform the Division of Housing and Community Renewal of OSC’s automatic processing of the April 2025 DC 37 3% Salary Increases and provide instructions for payments not processed automatically.

Affected Employees:

Employees in the Rent Regulation Services Unit (RRSU) – BU67 in the Division of Housing and Community Renewal who meet the eligibility criteria are affected.

Background:

Chapter 177 of the Laws of 2024, which implemented the 2023-2026 Agreement between the State of New York and the District Council 37 (DC 37), provides for a salary increase of three percent (3%) for fiscal year 2025-2026 for all eligible members of the Rent Regulation Services Unit (RRSU) and includes the April 1, 2025 RRSU Salary Schedule 

Effective Dates:

April 2025 DC 37 3% Salary Increases will be paid using the following effective date and check date:

Eligibility Criteria:

The following employees are eligible to receive the April 2025 DC 37 RRSU 3% Salary Increase: 

• Employees with a Comp Rate Code of ANN who are in a traineeship (Grade 800).
• Employees with a Comp Rate Code of ANN who are in an NS position (Grade 600).
• Employees with a Comp Rate Code of ANN who are in an NS position (Grade 600) which is equated to a grade (Grade 001-032).
• Employees with a Comp Rate Code of ANN who are in a graded position (Grade 001-032).

Employees who were on a Leave of Absence (other than Workers’ Compensation Leave) on the effective date of the increase will become eligible for the salary increase upon the employee’s return from leave.

Control-D Report Available Prior to Processing: 

The following Control-D report will be available for agency use on 03/27/2025 (Administration). This will give the agency time to correct employees’ records, if necessary, prior to the automatic processing of the April 2025 DC37 3% Salary Increase. The report will be sorted by Department ID, then by employee name in alphabetical order. 

NHRP709 – Mass Salary Increase Exception Report

This report is a preliminary listing of employees who appear ineligible to receive the April 2025 DC 37 RRSU 3% Salary Increase based on information available as of the date the report is produced. Included on the report is one or more of the following messages which identifies the reason(s) the employee’s record will not be updated:

• NYS Position Has Both Equated Grade and NTE – if the employee’s Grade on the Position Data page (based on the NYS Position Number) is equal to 600 and a value exists in both the Equated to Grade field and the Approved Salary Rate field.
• Position and Job do not match – if the Position Number equals the NYS Position Number on the employee’s Job Data page but the Bargaining Unit, Salary Administration Plan or Grade on the Job Data page and the Position Data page are not equal.
• Increment Code Missing – if the Grade on the Position Data page (based on the NYS Position Number) is equal to 001-032 or 600 with a value of 001-032 in the Equated to Grade field, and the Comp Rate Code is ANN and the increment code on the employee’s Job Data page is blank or ‘0000.’
• Increment Code Invalid – if the Grade on the Position Data page (based on the NYS Position Number) is equal to 001-032 or 600 with a value of 001-032 in the Equated to Grade field, and the Comp Rate Code is ANN and the increment code on the employee’s Job Data page is other than 0001, 0003, 0004, 1001, 1003, 1004, 1000, 2222, 7777, 19XX, 20XX, XX10, 1000, 8888, 0188, 0330, 0388, 1088, 1330, or 1388.
• Inc Code Req Review – if the increment code on the employee’s Job Data page is 2222.
• Sal Below Hiring Rate – if the Grade on the Position Data page (based on the NYS Position Number) is equal to 001-032 or 600 with a value of 001-032 in the Equated to Grade field, and the Comp Rate Code is ANN and the employee’s salary on any of the Job Data rows being evaluated is less than the Hiring Rate for the employee’s grade on the effective date based on the 04/01/2024 Salary Schedule.

If an employee appears on this report but is due a salary increase, the agency must take the following action:

• Submit the appropriate transaction(s) on the Job Action Requests page to correct the information on the Job Data row(s). If the row(s) is corrected prior to Administration Pay Period 1L, the automatic salary increase will be processed.
• Submit a Position Change Request to the Position Management Unit if the position information is incorrect on the Position Data page in PayServ but is correct in NYSTEP. The position will be updated to reflect the change and the automatic salary increase will be processed provided the agency’s position request contains the same information as the position information in NYSTEP.

OSC Actions:

OSC will process the April 2025 DC 37 Salary Increases for the following employees:

• If the employee meets the eligibility criteria and has a Payroll Status of Active, Leave With Pay or Leave of Absence due to a Workers’ Compensation Leave (Action/Reason code of Leave of Absence/WCL, WDL, or WPS) on the payment effective date, OSC will automatically insert a row on the employee’s Job Data page using the Action/Reason Code of Pay Rate Change/SAC (Mass Salary Increase) using the following effective dates:
  • 2025 3% Increase: Effective 03/27/2025 (Administration)
• If the employee meets the eligibility criteria but has a Payroll Status of Terminated, Retired, or Leave of Absence (not related to a Workers’ Compensation Leave) on the payment effective date and returns to Active status in an eligible position, OSC will automatically insert a row on the employee’s Job Data page using the Action/Reason code of Pay Rate Change/CSL (Correct Salary) if the Comp Rate Code is ANN. The row will be inserted using the effective date of the Rehire or Return from Leave action.
• If the employee is newly hired or transfers into an eligible position after the payment effective date, OSC will automatically insert a row on the employee’s Job Data page using the Action/Reason code of Pay Rate Change/CSL (Correct Salary) if the Comp Rate Code is ANN. The row will be inserted using the effective date of the Hire, Position Change or Transfer action.
• OSC will automatically insert a row on the employee’s Job Data page using the Action/Reason code of Pay Rate Change/CSL (Correct Salary) if the Comp Rate Code is ANN for all subsequent rows provided the employee remains in an eligible position.

Calculating the New Compensation Rate

The salary on each inserted row will be calculated as follows:

2025 3% Increase Processing

• If the employee has a Comp Rate Code of ANN and a Grade equal to 600 (not equated to a grade) or 800, OSC will automatically increase the salary by applying 3.00% rounded to the nearest dollar.
• If the employee has a Comp Rate Code of ANN, a Grade equal to 600 with an equated grade equal to 001-032 and an increment code other than 2222 and the salary is equal to a salary step of the employee’s grade on the effective date based on the 04/01/2024 Salary Schedule, OSC will automatically increase the salary to the same salary step on the 04/01/2025 Salary Schedule.
• If the employee has a Comp Rate Code of ANN, a Grade equal to 600 with an equated grade equal to 001-032 and an increment code other than 2222 and the salary is not equal to a salary step of the employee’s grade on the effective date based on the 04/01/2024 Salary Schedule, OSC will process as follows:
  • If the salary is less than the Job Rate of the employee’s grade on the effective date based on the 04/01/2024 Salary Schedule, OSC will automatically increase the salary by applying 3.00% rounded to the nearest dollar. If the resulting salary is greater than the Job Rate based on the 04/01/2025 Salary Schedule, OSC will reduce the salary to the Job Rate.
  • If the salary is greater than the Job Rate of the employee’s grade on the effective date based on the 04/01/2024 Salary Schedule, OSC will automatically increase the salary by applying 3.00% rounded to the nearest dollar OR increase the salary to the Job Rate based on the 04/01/2025 Salary Schedule, whichever is greater.
• If the employee has a Comp Rate Code of ANN, a Grade equal to 001-032 and an increment code other than 2222 and the salary is equal to a salary step of the employee’s grade on the effective date based on the 04/01/2024 Salary Schedule, OSC will automatically increase the salary to the same salary step on the 04/01/2025 Salary Schedule.
• If the employee has a Comp Rate Code of ANN, a Grade equal to 001-032 and an increment code other than 2222 and the salary is not equal to a salary step of the employee’s grade on the effective date based on the 04/01/2024 Salary Schedule, OSC will process as follows:
  • If the salary is less than the Job Rate of the employee’s grade on the effective date based on the 04/01/2024 Salary Schedule, OSC will automatically increase the salary by applying 3.00% rounded to the nearest dollar. If the resulting salary is greater than the Job Rate based on the 04/01/2025 Salary Schedule, OSC will reduce the salary to the Job Rate.
  • If the salary is greater than the Job Rate of the employee’s grade on the effective date based on the 04/01/2024 Salary Schedule, OSC will automatically increase the salary by applying 3.00% rounded to the nearest dollar OR increase the salary to the Job Rate based on the 04/01/2025 Salary Schedule, whichever is greater.

Exceptions

Employees in a composite position (identified by Increment Code 2222) will not be processed automatically.

Control-D Reports Available After Processing:

The following Control-D reports will be available for agency review after the automatic increases have been processed. All reports will be sorted by Department ID, then by employee name in alphabetical order.

NHRP704 – Mass Salary Increase Report

This report identifies all employees who received the automatic April 2025 DC37 Salary Increase and includes all employees’ salaries that were increased in an eligible bargaining unit.

NHRP709 – Mass Salary Increase Exception Report

This report identifies employees who did not receive the automatic April 2025 Salary Increases. Included on the report is one or more of the following messages which identifies the reason(s) the employee’s record was not updated: 

• NYS Position Has Both Equated Grade and NTE
• Position and Job Do Not Match
• Increment Code Missing
• Increment Code Invalid
• Inc Code Req Review
• Sal Below Hiring Rate 

See Control-D Report Available Prior to Processing for an explanation of these messages.

Agency Actions –Administration Pay Period 1L:

The following procedures must be used by the agency when submitting transactions in Administration Pay Period 1L:

• For pay changes, positions changes and transfers requested on the Job Action Requests or Transfer Requests page with an effective date on or after 03/27/2025 (Administration):
  • The agency must not include the April 2025 DC 37 RRSU Salary Increases in the salary reported in the Pay Rate field. The salary must be calculated using the 04/01/2024 Salary Schedule.

Agency Actions – Beginning in Administration Pay Period 2L:

Employees Who Appeared on the NHRP709 – Mass Salary Increase Exception Report

Employees who appeared on the NHRP709 Mass Salary Increase Exception Report, made available after processing, did not automatically receive the April 2025 DC 37 RRSU Salary Increases. Agencies must submit appropriate transactions to correct the employee’s record and submit a Pay Change on the Job Action Requests page using the appropriate Reason Code to pay salary increase beginning in Administration Pay Period 2L.

Composite Positions

Beginning Institution or Administration Pay Period 2L, agencies must review employees in composite positions (identified by Increment Code 2222) and submit a Pay Change on the Job Action Requests page using the appropriate Reason Code (see below) to pay salary increase. Information regarding the composite position must be included on the General Comments page. 

To Process Payment Manually

The following Action/Reason Code(s) must be used to pay the April 2025 DC37 RRSU Salary Increases to eligible employees not processed automatically:

• Reason Code SAC (Mass Salary Increase) – For transactions effective:
  • 2025 Increase – effective on 03/27/2025 (Administration).
• Reason Code CSL (Cor Sal) for ANN Comp Rate For transactions effective other than the effective dates of salary increases:
  • 2025 Increase – effective after 03/27/2025 (Administration)

Tax Information: 

These monies are taxable income subject to all employment taxes and income taxes, will be included in the employee’s taxable gross, and will be reported on the employee’s Form W-2. 

Undeliverable Checks

When a valid payroll check is undeliverable due to the agency’s inability to locate the employee, the agency should follow the Agency Actions identified in Payroll Bulletin No. 1786 – Non-Negotiated and/or Undeliverable New York State Payroll Checks.

Checks issued to eligible employees who are now deceased should be submitted as a Stop Payment Request with a reason of Exchange in PayServ. The Report of Check Exchange (AC 1476-P), Next of Kin Affidavit (AC 934-P), and original death certificate should be submitted to the Payroll Reversal and Exchange mailbox at the same time as the Stop Payment Request. If a Next of Kin Affidavit has been previously submitted for a deceased employee’s payroll check, OSC will accept a photocopy of this form along with a new Report of Check Exchange.

Questions:

Questions regarding this bulletin may be directed to the Payroll Earnings mailbox.

Questions regarding position change requests may be directed to the Position Management mailbox.