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California State University, Long BeachCalifornia State University, Long Beach

10/12 or 11/12 Pay Plan Information

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In the 10/12 or 11/12 pay plan, a permanent employee will work for 10 months (10/12) or 11 months (11/12) and his/her pay is spread over a 12-month period. Under the 10/12 or 11/12 pay plan, a portion of the employee’s pay is reserved (banked) each month to provide pay and continue eligible benefits during his/her month(s) off. Pay is calculated using a formula that takes the employee’s current monthly salary rate and multiplies it by 10 (for 10/12) or 11 (for 11/12) and then divides that total by 12.

Example of 10/12: $5,000 per month x 10 months = $50,000, $50,000/12 = $4167 (new monthly rate)

Example of 11/12: $5,000 per month x 11 months - $55,000, $55,000/12 = $4583 (new monthly rate)

A yearly schedule for an employee in the 10/12 pay plan program shall normally be five (5) consecutive pay periods in work status, followed by one (1) pay period in non-work status, or ten (10) consecutive pay periods in work status, followed by two (2) consecutive pay periods in non-work status. A yearly schedule for an employee in the 11/12 pay plan program shall normally be eleven (11) consecutive pay periods in work status followed by one (1) pay period in non-work status.

Variations of a 10/12 yearly schedule can exist except that variation of schedule shall not provide for a period of time in non-work status that requires advance payment of salary. Below are a couple examples of 10/12 schedules that meet this timing requirement without having to work the full 10 months before a 2 month period of non-work:

  • Work 6 months, 1 month off, work 4 months, 1 month off
  • Work 7 months, 1 month off, work 3 months, 1 month off

There is no variation for the 11/12 schedule that will not require an advance payment of salary

All 10/12 or 11/12 pay plan must start at the beginning of a pay period.

Points to Remember:

  • Departments must consult with the Payroll Office or the Staff Personnel Office before changing a 10/12 or 11/12 employee’s month(s) off.
  • Departments must consult with the Payroll Office or the Staff Personnel Office immediately when the employee has excessive docks and/or is going out on an unpaid leave.
  • Departments must consult with the Payroll Office or the Staff Personnel Office immediately when the employee does not complete the 10/12 or 11/12 pay plan. At which time the employee’s pay will be adjusted (*Settlement payment).
  • Docks for employees on the 10/12 or 11/12 pay plan are calculated by Payroll using the 10/12 or 11/12 salary rate, not the employee’s 12 month rate. Thus, the employee is docked at a lower salary amount and consequently overpaid. At the end of the 10/12 or 11/12 yearly schedule, the remaining amount due from the employee must be collected by an adjustment (*Settlement payment) at the end of the pay plan year.
  • Holiday pay is not provided for holidays landing in the employee’s month(s) off. Employees cannot receive an Additional Day Off (ADO) because a holiday occurs during their month(s) off.

*Settlement payments are calculated by multiplying the annual salary (12 x monthly 10/12 or 11/12 salary) by the number of days worked, divided by the number of days possible in the 10/12 or 11/12 cycle. This will determine what the employee is entitled to receive. This amount is offset by the pay that has been issued to the employee to determine the final amount due.

This process must be anticipated prior to the end of the employee’s 12 month cycle so that adjustments can be made to the employee’s final pay for the pay plan year.

The following example represents calculations for an employee on the 10/12 pay plan who began the cycle in August of 2009, and designated June and July as his ‘Off’ months. Subsequently, the employee was docked a total of 10 days in September 2009 and 5 days in October of 2009.

  • Regular Monthly Salary = $2000.00
  • 10/12 Monthly Salary (2,000.00 x 10/12) = 1,666.67
  • Annual 10/12 Salary (12 x 1666.67) = $20,000.04
Pay Period Possible Days Worked Days Pay Issued
Aug 09 22 22 1,666.67
Sep 09 21 11 873.07
Oct 09 22 17 1,287.92
Nov 09 22 22 1,666.67
Dec 09 22 22 1,666.67
Jan 10 22 22 1,666.67
Feb 10 22 22 1,666.67
Mar 10 21 21 1,666.67
Apr 10 22 22 1,666.67
May 10 22 22 1,666.67
Jun 10 Off Off 1,666.67
Jul 10 Off Off Settlement Due
TOTAL 218 203 17,161.02
  • Amount Earned (20,000.04 x 203/218) = $18,623.89
  • Paid Thru June 10 Pay Period = $17,161.02
  • Final Settlement Amount Due (18,623.89 – 17,161.02) = $1,462.87