Public sector pay policy for senior appointments 2019-2020: technical guide

2. Key Pay Policy Parameters for 2019‑20

What are the pay policy parameters for Senior Appointments in 2019‑20?

2.1 The Pay Policy for senior appointments is set out in the following sections:

• Chief Executives of NDPBs and Public Corporations – paragraphs 2.2 to 2.8
• NHS Scotland Executive and Senior Management posts is also set out in paragraphs 2.2 to 2.8
• Chairs and Members – paragraphs 2.9 to 2.12

Chief Executives including NHS Scotland Executive and Senior Management posts:

2.2 For those Chief Executives currently earning less than £80,000, a 2 per cent basic award may be made. For those earning £80,000 or more, the basic award is limited to a maximum of £1,600.

2.3 For Chief Executives on pay ranges, there is discretion for employers to reach their own decision about pay progression, where the individual is eligible, but this is limited to a maximum of 1.5 per cent.

2.4 In calculating any award, the expectation is that progression, where eligible, will be considered first prior to applying the basic award. The level of basic award should take into account the levels of basic award and progression proposed for other senior members of staff within the public body.

2.5 Any increase in pay must not exceed the maximum of the Chief Executive's pay range nor the ceiling of the relevant Band in the Chief Executive Pay Framework (see section 3).

2.6 In line with other staff, the policy position remains that all non-consolidated performance payments (bonuses) remain suspended during 2019-20. This suspension applies to all non-consolidated performance payments (normally based on performance in the preceding year). This approach allows public bodies to maximise the resources available to them to address low pay and fair pay issues.

2.7 The suspension does not apply to non-consolidated payments awarded to staff on their maxima on spot rates of pay. An employer may make a non‑consolidated payment amounting to no more than 1 per cent of salary for Chief Executives already on the maximum of their pay range (and who no longer benefit from progression) or those on spot rates. However, this would require similar provision to be made for other staff across the pay remit.

What does the commitment to No Compulsory Redundancy mean?

2.8 The No Compulsory Redundancy agreement means that public bodies would be expected to look at appropriate measures to avoid compulsory redundancy such as transfer to other areas of work both within the organisation or, where agreed arrangements are in place, to another public body. The Chief Executive can be offered a commitment to No Compulsory Redundancy on the same basis as that offered to staff in the public body.

Chairs and Members:

2.9 An equivalent £80,000 per annum threshold also applies to the daily fees for Chairs and Members of Scottish public bodies: those who are paid less than £307 per day (this equates to £80,000 per annum) can receive a 2 per cent increase; those receiving £307 or more are limited to a maximum increase of £6 per day.

2.10 There is an expectation that daily fee pay proposals for Chairs and Members will cover one year only.

2.11 Where a Chair or Member is already paid a daily fee in whole pound amounts, the proposed daily fee may be rounded (under standard accountancy practices) to the nearest whole pound. Where such rounding results in an increase in a daily fee of less than 2 per cent, then the post may move to being paid daily fees on the basis of pounds and pence. This arrangement would not be applicable to those earning £307 or more as a round figure of £6 is being added.

2.12 No daily fee (including any pension contribution) should exceed the relevant ceiling in the Daily Fee Framework (see section 5), except where the daily fees were agreed previously by Ministers at levels above the ceiling.