Scottish Budget 2025 to 2026: public sector pay policy

Foreword by the Cabinet Secretary for Finance and Local Government

I am pleased to set out the Scottish Government's Public Sector Pay Policy for 2025-26. The Scottish Government is proud to support our public services and is committed to maintaining high quality services that people in Scotland need.

The most valuable and important asset remains the public sector workforce. Spending on workforce pay accounts for over half of the entire Scottish resource budget. That reflects the importance we place on having a highly skilled and remunerated workforce.

This Pay Policy balances flexibility with fairness and sustainability, and offers multi-year pay metrics above forecast levels of inflation from 2025-26 to 2027-28. It revises the multi-year Pay Policy issued in May 2024, acknowledging both the revised fiscal context following the UK Budget and updated inflation forecasts.

I am clear that a multi-year, above inflation approach to pay provides certainty for the public sector workforce and an opportunity for Scottish Government, employers and Trade Unions to plan for and transform our public services to improve outcomes for the people of Scotland. My expectation is that all public sector employers will negotiate multi-year deals with trade unions and staff representatives within the parameters set out in this policy.

The Scottish Government is proud to support our public services and we are committed to maintaining high quality services that people in Scotland need. This framework for a multi-year pay policy continues our commitment to the public sector workforce and continues our journey to build and boost the Scottish economy and create the prosperity necessary to support people in Scotland.

Shona Robison MSP

Cabinet Secretary for Finance and Local Government