A relocation allowance is compensation intended to offset higher living costs in a new location.
Some managers and senior professionals (MSP) who accept new positions at UC Davis may be eligible, upon advance approval, for relocation allowances.
Important: Eligibility is limited to individuals who, at the time of recruitment, are not employed by the University and who reside outside the state of California.
Relocation Allowance Guidelines:
- The total relocation allowance may not exceed 25 percent of the employee's annualized base salary. Payment is generally made on a monthly basis over a four-year period, with 40 percent of the allowance paid in the first year, 30 percent in the second year, 20 percent in the third year, and 10 percent in the fourth year.
- The relocation allowance is included in the eligible employee's gross income as taxable wages.
- The relocation allowance is excluded from covered compensation under the UC Retirement Plan.
Relocation allowances are reportable for tax purposes because they are considered additional income (compensation) to the employee.
The hiring department requests approval from the Human Resources Associate Vice Chancellor via an email with the following information:
- Name of the person who is relocating and title of the position that they will be filling.
- Where they are relocating from (prior residence).
- Rationale as to why the department is requesting a relocation allowance.
Associate Vice Chancellor - Human Resources Office's Responsibility:
- Review the request and send written approval to the department.
- Enter the relocation allowance in the Payroll/Personnel System using RIP Description of Service Code.