Scottish Budget 2025 to 2026: public sector pay policy
Public sector pay policy for the year 2025 to 2026 sets out the framework for pay increases and applies to public bodies with settlement dates in the year between 1 April 2025 and 31 March 2026.
Multi-year Pay Policy Framework
Pay metrics must balance flexibility with fairness and affordability.
This Pay Policy sets out a multi-year framework from 2025-26 to 2027-28 and sets out pay metrics above forecast levels of inflation. While inflation is forecast to average under 7% across the 3-year period, the key features of the multi-year pay metrics are:
- 9% pay envelope covering 2025-26, 2026-27 and 2027-28
- Flexibility for employers to configure three-year proposals within the 9% pay envelope
This multi-year Pay Policy sets a clear expectation that pay deals will be agreed covering three years, 2025-26, 2026-27 and 2027-28. Any employer that does not agree a three-year pay deal will be restricted to a maximum 3% pay uplift for 2025-26.
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