This page, Purchase of Service (POS) Salary Reserve, is offered by

Purchase of Service (POS) Salary Reserve


Important Notice: FY15 Salary Reserve Update – January 2016

Departments have received funds to annualize the FY15 Salary Reserve for contracts which received Salary Reserve in FY15 and are still eligible (that have not been rate set or removed from the Chapter 257 rate setting process.) Departments are currently in the process of amending eligible contracts. MRC and DMH are bundling provider’s eligible annualization into a single Salary Reserve contract. Departments are planning to complete the amendment process by the week of February 8th.

If you have questions regarding the amendment process, please reach out to the department that holds the contract directly.

Important Notice: FY15 Salary Reserve Final Reports – December 2015

The final Salary Reserve allocation reports for the 2015 fiscal year were submitted to the State Legislature, Senate and House Ways and Means Committees on December 18, 2014.  You can view the full reports below:

Update to Timeline – November 19, 2014

EOHHS is e-mailing FY2015 salary reserve contracts to providers on November 20th and 21st.  The Executive Office intends to issue salary reserve payments on December 19th to providers who return their fully executed contracts by December 5, 2014.

Important Notice for Appeals Process – November 4, 2014

Reasons for appeal:

  • An appeal process is available to organizations that believe they did not receive the Salary Reserve funds to which they are entitled.  Though they are rare, there may be instances of a miscalculation on an eligible contract, or contracts that were mistakenly excluded from the Salary Reserve distribution, or situations where an amount received does not match a provider’s own calculations.

Timeline for appeals:

  • The appeals period for the 2015 Salary Reserve distribution process will open on November 4, 2014.
  • The deadline for receipt of provider appeals is November 12, 2014. Providers are encouraged to submit their appeals as soon as possible in order to expedite the review process.
  • To submit an appeal, providers must follow the procedure outline below.   EOHHS will notify providers regarding the outcome of its review of their appeal as soon as possible after November 12.  In cases where EOHHS determines that the appeal is valid, an amendment to the provider’s Salary Reserve allocation will be made.   

Procedures for appeals:

  • Providers wishing to appeal their Salary Reserve allocation need to do so by submitting the Appeal Form below. 
  • The appeal form may be completed and submitted electronically (via email) to 
  • EOHHS will collect and review all appeals and will determine whether a correction is merited to any Salary Reserve allocation.
  • Contracts will be prepared, sent out to providers for signatures and processed for payment.

FY2015 Individual Contractor Report  

FY15 Salary Reserve Appeals Form  

FY2015 Salary Reserve Opening – August 2014

EOHHS is pleased to announce the opening of the FY2015 Salary Reserve application period.  In order to be eligible for FY2015 Salary Reserve funds, it is critical that providers adhere to the key dates and timeline outlined below:

  • Providers needing to gain access to the Virtual Gateway and/or the Provider Data Management System must complete and submit all necessary forms (please see the PDM Deployment Checklist document below) by September 10, 2014
  • August 14, 2014 – September 19, 2014: Provider payroll data submission period.
    • On Thursday Augus14, 2014, PDM opens to Providers on the Virtual Gateway for on-line submission of salary reserve-eligible payroll information.
    • The deadline is September 19, 2014, for providers to submit on PDM all pay roll and salary information required for allocation of the FY15 Salary Reserve funds. Applications will not be accepted for the FY15 Salary Reserve after this date.
  • November 4, 2014: Individual provider allocation amounts will be announced on

FY2015 Salary Reserve Timeline

August 14, 2014 PDM is open to human service providers on the EOHHS Virtual Gateway for on-line submission of salary reserve-eligible payroll information
September 10, 2014 Deadline for submission of VG and PDM Forms to change PDM Data Entry Administrator
September 19, 2014 Deadline for submission of provider payroll information into PDM
September 22 - October 15, 2014 Salary Reserve submissions pulled and data provided to EHS by IT.  Data distributed to Agencies to review and confirm submissions
October16 -
November 3, 2014
EOHHS calculates allocations and forwards to Agencies for final review and sign off
November 4, 2014 Notice to providers on amounts allocated: Information posted on salary reserve webpage
November 4, 2014 Allocation appeal process opens for providers who wish to dispute their allocation. Appeal Form and instructions to appeal available on-line
November 12, 2014 Appeals period closes, all allocations are final
November. 12 - 14, 2014 Salary reserve contracts prepared and emailed to Providers for their signature
December 1, 2014 Deadline for Providers mailing back signed contracts to EOHHS
December 15, 2014 First payment to providers (July-December) – Pending ANF approval
January 2015 EOHHS submits allocation report to Legislature and posts on the webpage

FY2015 Language

1599-6901:  For a reserve to adjust the wages, compensation or salary and associated employee-related costs to personnel earning less than $40,000 in annual compensation who are employed by private human service providers that deliver human and social services under contracts with departments within the executive office of health and human services and the executive office of elder affairs; provided, that home care workers shall be eligible for funding from this item; provided further, that workers from shelters and programs that serve homeless individuals and families that were previously contracted through the department of transitional assistance and the department of public health who are currently contracted with the department of housing and community development and direct care workers that serve homeless veterans through the department of veterans' services shall be eligible for funding from this item; provided further, that the secretary of administration and finance may allocate the funds appropriated in this item to the departments to implement this initiative; provided further, that the executive office of health and human services shall condition the expenditure of appropriation upon assurances that the funds shall be used solely for the purposes of equal percentage adjustments to wages, compensation or salary; provided further, that not later than January 15, 2015, the executive office of health and human services shall submit to the house and senate committees on ways and means a report delineating the number of employees, by job title and average salary, receiving the adjustment in fiscal year 2015 and the average percentage adjustment funded in this item; provided further, that the report shall also include, for each contract scheduled to receive any allocation from this item in each such department, the total payroll expenditures in each contract for the categories of personnel scheduled to receive the adjustments; provided further, that no funds from this item shall be allocated to special education programs under chapter 71B of the General Laws, contracts for early education and care services or programs for which payment rates are negotiated and paid as class rates as established by the executive office of health and human services; provided further, that no funds shall be allocated from this item to contracts funded exclusively by federal grants as delineated in section 2D; provided further, that the total fiscal year 2015 costs of salary adjustments and any other associated employee costs authorized thereunder shall not exceed $8,000,000; provided further, that funds in this item shall be distributed not later than 160 days after the effective date of this item; provided further, that the executive office health and human services shall submit an allocation schedule to the house and senate committees on ways and means not less than 30 days after disbursement of funds; and provided further, that the annualized cost of the adjustments in fiscal year 2016 shall not exceed the amount appropriated in this item:  $8,000,000.

Salary Reserve Virtual Gateway and Provider Data Management System

Providers wishing to apply for these funds must have access to the EOHHS Virtual Gateway (VG) and the Provider Data Management (PDM) business application. Below is the EOHHS PDM Deployment Checklist to inform applicants of critical information necessary to gain access to or to update information on VG and PDM.  The VG and PDM forms that are referenced in the checklist are also included below. The deadline for submission of the necessary forms is September 10, 2014.

VG and PDM Checklist

  1. PDM Deployment Checklist 

VG and PDM Forms

  1. VG Services Agreement 
  2. Access Administrator Designation Form 
  3. PDM User Request Form 

Other Documents

  1. Salary Reserve FY2015 Reference Guide  
  2. FY 2015 Salary Reserve Policies Procedures  
  3. Frequently Asked Questions for FY2015  

Please visit this website regularly for Salary Reserve updates. For more information contact the Purchase of Service Help Line at (617) 573-1717 or send an email to