Purpose:
The purpose of this bulletin is to inform agencies of OSC’s automatic processing of the April 2025 Increases to Location Pay and Location Mid-Hudson Pay and provide instructions for payments not processed automatically.
Affected Employees:
All employees in Bargaining Units 05 represented by PEF who meet the eligibility criteria are affected.
Background:
Chapter 190 of the Laws of 2023, which implemented the 2023 – 2026 Agreement between the State of New York and the Public Employees Federation (PEF), provides for an increase in Location Pay for employees located Downstate who are currently receiving Location Pay (Earnings Code LOC) and employees located in the counties of Dutchess, Putnam or Orange currently receiving Location Mid-Hudson Pay (Earnings Code LMH).
Effective Dates:
The increases to Location Pay and Location Mid-Hudson Pay will be paid using the following effective dates and check dates:
| Pay Cycle/Pay Period Type | 2025 Effective Dates | Check Dates |
|---|---|---|
| Administration 1 Lag | 03/27/2025 | 04/23/2025 |
| Institution 1 Lag | 04/03/2025 | 05/01/2025 |
Eligibility Criteria:
Employees in Bargaining Unit 05 who currently receive Earnings Code LOC or Earnings Code LMH, on or after the applicable effective dates listed above, are entitled to the increase.
| Earnings Code (Description) | County | 2025 Increased Amount |
|---|---|---|
| Location Pay (LOC) | NYC, Rockland, Nassau, Suffolk and Westchester | $4,000 |
| Location Mid-Hudson (LMH) | Orange, Dutchess and Putnam | $2,000 |
OSC Actions:
Location Pay (Earnings Code LOC) and Location Mid-Hudson (Earnings Code LMH)
OSC will automatically insert a row to update the Additional Pay page with the effective dates listed in the chart above for the April 2025 increases for employees in Bargaining Unit 05 receiving Location Pay or Location Mid-Hudson Pay.
Location Pay Downstate Adjustment (LOC)
| Earnings Code: | LOC |
|---|---|
| Effective Date: | 03/27/2025 (A), 04/03/2025 (I) or the date employee returns to the payroll |
| Annual Addl Earnings: | $4,000 |
| Earnings End Date: | Leave Blank |
| Goal Balance: | Leave Blank |
Location Pay Mid-Hudson Adjustment (LMH)
| Earnings Code: | LMH |
|---|---|
| Effective Date: | 03/27/2025 (A), 04/03/2025 (I) |
| Annual Addl Earnings: | $2,000 |
| Earnings End Date: | Leave Blank |
| Goal Balance: | Leave Blank |
OSC will automatically update any eligible subsequent rows.
Agency Actions:
To pay the April 2025 Increases to Location Pay and Location Mid-Hudson Pay for Bargaining Unit 05 to eligible employees not processed automatically or who return from an authorized leave of absence, the agency must submit the following information on the Additional Pay page using the appropriate Earnings Code
Location Pay Downstate Adjustment (LOC)
| Earnings Code: | LOC |
|---|---|
| Effective Date: | 03/27/2025 (A), 04/03/2025 (I) or the date employee returns to the payroll |
| Annual Addl Earnings: | $4,000 |
| Earnings End Date: | Leave Blank |
| Goal Balance: | Leave Blank |
Location Pay Mid-Hudson Adjustment (LMH)
| Earnings Code: | LMH |
|---|---|
| Effective Date: | 03/27/2025 (A), 04/03/2025 (I) |
| Annual Addl Earnings: | $2,000 |
| Earnings End Date: | Leave Blank |
| Goal Balance: | Leave Blank |
Control-D Report Available After Processing:
The following Control-D report will be available after processing of the automatic increases:
NHRP703 Mass Salary Additional Pay Report
This report identifies all employees receiving an automatic increase for Location Pay (Earnings Code LOC) and Location Mid-Hudson Pay (Earnings Code LMH). Fields on this report include EmplID, Employee Record Number, Employee Name, Earn Code, Grade, Salary Plan, Bargaining Unit, and Additional Pay Amount.
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.
Payroll Register and Employee’s Paycheck/Advice:
The Earnings Codes (LOC or LMH) and the amount paid will be displayed on the Payroll Register. The corresponding Earnings Description and the amount paid will be displayed on the employee’s paycheck stub or direct deposit advice. If the number of earnings codes exceeds 13, agencies should utilize Locked Query LQ_PCD_PAYCHECK_EARNINGS_BY_ID to identify a complete list of earnings.
Questions:
Questions regarding this bulletin may be directed to the Payroll Earnings mailbox.
Questions regarding taxes may be directed to the Tax and Compliance mailbox.