Annual Compensation Review

What you need to know

Sandia’s annual compensation review for non-represented employees takes place after year-end performance management reviews.

Managers review variable pay recommendations and may modify as needed.

Recommendations and final increases and awards must fit within the annual salary budget guidelines from the Department of Energy (DOE).

About the Annual Compensation Review Cycle

Each year, Sandia’s Compensation team analyzes external market data and internal employee pay across jobs to develop the annual Compensation Increase Plan (CIP) proposal, which is submitted to National Nuclear Security Administration (NNSA) for approval. The CIP establishes the budget available for annual base salary increases and variable pay – delivered through the Sandia Performance Incentive Plan (SPIP) and Management Incentive Plan (MIP).

Variable pay is aimed toward awarding those who go beyond expected performance, reinforcing Sandia’s commitment to rewarding our high performers. While consistent performance that meets expectations is essential to advancing Sandia’s mission and highly valued within the organization, it may not result in a variable pay award each performance year.

Key Dates and Required Actions

The Compensation Increase Plan has been approved for regular, nonrepresented employees. To ensure employees receive timely annual base pay increases while preserving a thorough review process for variable pay awards, the annual compensation review process will be separated into two parts. Employees will receive one compensation notice for annual base increases, and another one, if applicable, for variable pay. Please see the updated timeline below.

Date*	What’s Happening	Required Action
Sept. 30, 2025	Compensation freeze file	Active employees in regular, non-represented jobs on this date will be included in the review. Base increases and variable pay awards will be based on the job title and salary as of this date.
Dec. 27, 2025	Annual base increases are effective at the start of the pay period.
Jan. 5, 2026	Employee compensation notices for annual base increases available for review and release by managers.	Managers should discuss compensation results with eligible employees by EOD Jan. 9.
Jan. 12, 2026	Compensation notices for annual base increases are automatically released by the system to all eligible employees.
Jan. 12 through noon MST Jan. 23, 2026	Comp Tool Opens	Compensation review meetings occur. Managers make final compensation decisions for variable pay in the Comp Tool.
Jan. 16, 2026	Annual base increases will be reflected in paychecks. Employees must be active, on-roll and in an eligible, non-represented position on Jan. 9.
Feb. 2, 2026	Employee compensation notices for variable pay awards, Sandia Performance Incentive Plan (SPIP) and Management Incentive Plan (MIP), available for review and release by managers.	Managers should discuss compensation results with applicable employees by EOD Feb. 6.
Feb. 9, 2026	Compensation notices for variable pay are automatically released by the system to all applicable employees.
Feb. 13, 2026	Variable pay awards (SPIP and MIP) paid. Employees must be active, on-roll and in an eligible, non-represented position on Feb. 6.

Resources

Check out the links below to learn more about your compensation opportunity and the annual compensation review process. You need access to Sandia’s internal web to view these resources. Also note, manager resources are available for review by managers only.

Manager Resources

Please be advised that some links on this webpage lead to placeholder documents. These documents are being provided in advance. Check back regularly for the most current information and updates. Thank you for your patience and understanding.

All Employee Resources

Please be advised that some links on this webpage lead to placeholder documents. These documents are being provided in advance. Check back regularly for the most current information and updates. Thank you for your patience and understanding.

Questions? Send questions to HR Solutions. Request a chat or call 505-284-4700.