Public Sector Pay Policy for Staff Pay Remits 2009-10

3. KEY PAY POLICY PRIORITIES AND KEY METRICS FOR 2009-10

What are the Key Pay Policy Priorities for public bodies seeking new pay settlements in 2009-10?

3.1 The tight financial settlement for Scotland over the next three years means that public bodies must deliver affordable and sustainable pay settlements. Public bodies should target resources at:

a) addressing inequalities within pay and reward systems and structures to work towards ensuring that they become and remain compliant with all equality requirements;

b) reducing the width of pay ranges, where possible, to work towards shorter progression journeys for staff and sustainable progression costs for public bodies;

c) addressing recruitment, retention or motivation issues that directly impact on a public body's ability to deliver outcomes; and

d) addressing low pay.

Can you make proposals that cover more than one year?

3.2 During 2009-10 public bodies may negotiate and put in place pay awards for one or two years. Knowing the level of pay settlements for future years brings certainty for employers and staff, but the length of any pay deal is a matter for each Public Body and its recognised trade unions. You should set out your plans for the length of your proposed pay deal in your business case.

Can you analogue to another Public Body or submit joint pay proposals?

3.3 To reduce the administrative and financial burden of preparing a pay remit on small ² public bodies, the 2009-10 policy encourages such bodies to make a business case to analogue in all respects to another appropriate existing pay regime (such as the Scottish Government or another Agency/ NDPB). Where a case is approved, the public body would be expected to provide a simple return that confirmed that they were implementing the analogued settlement only (any further enhancements would require separate approval) and the costs of implementing the settlement.

3.4 Thereafter, a brief review of each analogue would be required every three years to ensure that it remains fit for purpose and continues to allow the body to recruit, retain and motivate its staff.

3.5 Whilst the analogue arrangements would only be available for the smaller public bodies, there would be no restriction on larger public bodies seeking to submit joint remit proposals where there are clear business benefits of doing so. Where two or more bodies propose to submit a joint pay remit they should seek early discussions with the Finance Pay Policy team.

What are the key metrics that we will use to assess your pay remits?

3.6 In 2009-10 we will use three key metrics:

a) The basic award percentage. This is the consolidated percentage increase for staff that applies in addition to the progression or consolidated performance pay element of the pay award (See paragraphs 4.8 to 4.10);

b) The Increase for Staff in Post ( ISP) percentage. This is the cost of the increase in pay and benefits for staff within a public body as a percentage of the baseline paybill (the paybill for these staff immediately prior to the 2009-10 pay round) (See paragraphs 4.11 to 4.14); and

c) The Net Paybill Increase of the pay remit. This is how much the paybill will increase by, as a result of your pay proposals (See paragraphs 5.3 to 5.7).