KRS 18A.355: Formula for increasing base salary or wages of state employees --

Percentage of annual increment may be reduced.

(1) An annual increment of not less than five percent (5%) of the base salary or wages

of each state employee shall be granted to each employee on his or her anniversary

date. The employee's base salary or wages shall be increased by the amount of the

annual increment. When any increment due to a promotion, reallocation,

reclassification or salary adjustment is granted an employee, the employee's base

salary or wages shall be increased by the amount of such increment. An employee's

base salary or wages shall not be increased by the amount of lump -sum payment

awarded under KRS 18A.110(7)(i).

(2) The branch budget recommendation submitted to the General Assembly under KRS

Chapter 48 shall include a request for the amount of the annual increment expressed

as a percentage of each employee's base salary or wages and a request for the total

appropriation needed to fund the annual increment. The annual increment shall be

uniform for all employees. The financial plan enacted under the provisions of KRS

48.300 shall contain the annual increment expressed as a percentage of each

employee's base salary or wages, and the total appropriation needed to fund the

annual increment.

(3) The budget reduction plan submitted and enacted under the provisions of KRS

Chapter 48 shall provide that a reduction of the annual increment granted under this

section shall be made only after other cost savings measures , as provided by KRS

18A.113 are taken. Any such reduction shall be uniform for all state employees and

shall comply with the provisions of this chapter and KRS Chapter 48.