Public sector pay policy for staff pay remits 2019-2020: technical guide
Supports the application of the 2019-2020 public sector pay policy and applies to staff in the Scottish Government and its associated departments, agencies, non-departmental public bodies (NDPBs) and public corporations.
B. Worked Example
1. Varying the level of the basic award within the 1 per cent cap
The following example illustrates how a public body can chose to vary the levels of basic award within the 1 per cent cap set by the pay policy. The example is based on a public body with 105.0 (FTE) across 9 grades and includes seasonal staff:
Current pay structure for staff (£)
| Grade | Min | Min+1 | Min+2 | Min+3 | Min+4 | Max |
|---|---|---|---|---|---|---|
| A | 16,900 | 17,300 | 18,050 | 18,800 | ||
| Seasonal | 18,900 | |||||
| B | 18,900 | 19,900 | 20,900 | 21,900 | 22,725 | |
| C | 22,725 | 23,609 | 24,493 | 25,376 | 26,260 | |
| D | 27,270 | 28,180 | 29,090 | 30,000 | 30,910 | 31,820 |
| E | 33,000 | 34,000 | 35,000 | 36,000 | 37,000 | 38,000 |
| F | 41,000 | 42,500 | 44,000 | 45,500 | 47,000 | 48,500 |
| G | 55,000 | 57,000 | 59,000 | 61,000 | 63,000 | 65,000 |
| H | 70,000 | 72,500 | 75,000 | 77,500 | 80,000 | 82,500 |
Staff profile (FTE)
| Grade | Min | Min+1 | Min+2 | Min+3 | Min+4 | Max |
|---|---|---|---|---|---|---|
| A | 2.0 | 2.5 | 3.0 | 8.5 | ||
| Seasonal | 3.5 | |||||
| B | 3.0 | 2.5 | 4.0 | 3.0 | 8.5 | |
| C | 2.0 | 1.5 | 2.0 | 2.5 | 9.0 | |
| D | 1.0 | 1.0 | 2.0 | 1.0 | 3.0 | 5.0 |
| E | 2.0 | 1.5 | 2.0 | 1.5 | 2.0 | 6.0 |
| F | 1.0 | 1.0 | 1.5 | 2.0 | 0.0 | 5.0 |
| G | 0.0 | 1.0 | 0.0 | 1.0 | 1.0 | 3.0 |
| H | 0.0 | 1.0 | 0.0 | 1.0 | 0.0 | 1.0 |
Base salary costs
| Total for all staff, of which: | £3,265,651 |
|---|---|
| Below the Lower Pay Threshold | £1,872,151 |
| Between the Lower and Upper Pay Thresholds | £1,311,000 |
| Above the Upper Pay Threshold | £82,500 |
Illustrative costs for applying differing levels of basic award to staff between the Lower and Upper Pay Thresholds within the 2 per cent cap
| Basic award proposal options | Cost of basic award increase(1) | Cost as a percentage of the base salary cost |
|---|---|---|
| i. 2% across the board | £26,645 | 2.03% |
| ii. 3% on Grade E(2) pay points >£36,500k; 2.5% Grade F; and 1.5% on Grade G & H below UPT | £26,816 | 2.05% |
| iii. An across-the-board increase of £1,005 | £26,633 | 2.03% |
(1) the costs are after applying the progression increase
(2) The cost of applying an additional 1% to pay points in Grade E above the Lower Pay Threshold is costed within the 3% for staff below the Lower Pay Threshold.
2. Using the flexibility to use paybill savings to address equality issues
The following example illustrates how a public body can choose to use the additional flexibility in the policy to use paybill savings to address pay inequalities. This example includes a higher increase to lower paid staff and a reduction in progression journey times without increasing the pay minima.
Using the pay structure and staffing example in 1 above, the proposals are:
- to apply progression under existing arrangements
- to apply a 3% consolidated increase to all pay points of £36,500 or less.
- to apply 2% consolidated increase to all pay points above £36,500 and below £80,000
- to apply £1,600 to pay points £80,000 and above.
- to provide a 1% non-consolidated payment to staff on their pay range maxima
- to apply an additional 0.5% to all pay points in Grade A & B above the SLW rate.
- to remove the Min+3 pay point in Grades B and C and to use the 1% flexibilities to equalises the pay steps.
Proposed pay structure
| Grade | Min | Min+1 | Min+2 | Min+3 | Min+4 | Max |
|---|---|---|---|---|---|---|
| A | 16,900 | 17,906 | 18,682 | 19,458 | ||
| Seasonal | 19,562 | |||||
| B | 19,562 | 20,881 | 22,201 | 23,520 | ||
| C | 23,407 | 24,620 | 25,834 | 27,048 | ||
| D | 28,088 | 29,025 | 29,963 | 30,900 | 31,837 | 32,775 |
| E | 33,660 | 34,680 | 35,700 | 36,720 | 37,740 | 38,760 |
| F | 41,820 | 43,350 | 44,880 | 46,410 | 47,940 | 49,470 |
| G | 71,400 | 73,950 | 76,500 | 79,050 | 81,600 | 84,100 |
| H | 16,900 | 17,906 | 18,682 | 19,458 |
Summary of costs and as a percentage of baseline paybill:
| Increase applied | Cost (£) | As a percentage of baseline salaries for the relevant cohort | As a percentage of baseline salaries |
|---|---|---|---|
| Progression | 58,680 | 1.80% | |
| 3% for those earning £36,500 or less | 57,298(1)(2) | 3.06% | 1.76% |
| Additional Increase for Living wage | 22(3) | 0.00% | |
| 3% for in Grade E above the £36,500 threshold | 3,595 | 0.11% | |
| 2% increase in baseline salaries for those earning above £36,500 and below £80,000 (2% across the board) | 26,816(1) | 2.03% | 0.82% |
| £1,600 basic pay increase for those earning £80,000 and above | 1,600 | 1.94% | 0.05% |
| Flexibilities | 27,222(4) | 0.83% | |
| Total | 174,536 | 5.34% |
(1) the costs are after applying the progression increase
(2) The costs include 3% for staff who cross the threshold in Grade E
(3) This additional increase in the Living Wage is more than 3% there is no additional increase applied in this example
The flexibilities are costed as follows:
| Flexibility | Cost (£) | % baseline salaries |
|---|---|---|
| 1% non-consolidated payment to staff on their maxima prior to applying the pay award | 14,964 | 0.46% |
| Additional cost of topping up to a £750 cash underpin for staff earning below £25,000 | 3,379 | 0.10% |
| Removing Min+3 pay point in Grade B and equalising pay steps | 5,693 | 0.17% |
| Removing Min+3 pay point in Grade C and equalising pay steps | 3,338 | 0.10% |
| Total | 27,222 | 0.83% |
Contact
Email: financepaypolicy@gov.scot
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