As this pay deal will be backdated to April 2018 please enter the pay point you were on at 31 March 2018 to allow for an accurate calculation. This expectation is predicated on the ability to fill the post with a suitable candidate having regard to external market levels, value for money and recruitment and retention issues. 4.49 There may be a number of additional elements to the remuneration package offered to a Chief Executive over and above base pay. This circular announces the pay arrangements for 2015-16 in respect of the Executive and Senior Management cohorts. The Scottish Government has committed to ensuring staff receive the 3% increase for year one of the deal (2018/19) in July pay packets and in advance of the consultation as a gesture of good will. all employees are covered by the Scottish Living Wage of £9 an hour. 4.42 The whole remuneration package (salary, pay range, non‑consolidated performance payment and any other non‑salary rewards) should be considered as part of this expectation. 4.63 If, during negotiations with a prospective candidate, consideration is given to a remuneration package that differs from the one approved, a public body must seek the advice of the Finance Pay Policy team before any agreement is reached. This is principally for two reasons. The public body must take particular care to ensure the letter of appointment does not give rise to any contractual expectation which goes beyond that in any contract or the remuneration package as agreed by the Remuneration Group. From 1 April 2014, NHS staff in Scotland will receive a one per cent pay uplift, while staff earning under £21,000 will also receive an additional sum to increase their pay by £300 in total. comparator, the Scottish Government, the pay progression journey time for SPS staff to reach the maximum of the pay scale at grade 5, 6 and 7 level are 1 year longer and in some cases 2 years longer. Pay Increases and Thresholds 4.52 Where a public body already has an agreed scheme for the provision of cars (or related allowance) for staff, any proposed arrangement should be in line with that scheme. Fair Work First means investment in skills and training, no inappropriate use of zero hours contracts, action on gender pay, genuine workforce engagement, including with trade unions, and payment of the real Living Wage. This notification should be copied to the Finance Pay Policy team. continues the commitment to No Compulsory Redundancy. If proposing, provide details, justification or confirmation in line with other staff, affordability and sustainability - the financial impact of the pay remit proposals will be considered by the sponsor team, public body, or policy team, application of the increases within the pay thresholds and the Scottish Chief Executive Pay Framework, comparability with the increases for other staff in the public body, Determining the Pay Band in the Scottish Chief Executive Pay Framework, The proposed starting salary is in the lowest quartile of the existing pay range, The proposed remuneration package delivers a 10 per cent reduction in overall remuneration compared with the previous post-holder, There are no changes to the existing terms and conditions. In such cases the spot rate should reflect the market rate for the job which is expected to be the median of base pay of similarly weighted posts in the relevant labour market (see paragraphs 4.28 and 4.29). This policy also acts as a benchmark for all major public sector workforce groups across Scotland including NHS Scotland, fire-fighters and police officers, teachers and further education workers. However, where additional resources are required, these must be set out clearly. To support the new pay arrangements for Agenda for Change staff in NHS Scotland, the parties to the 2018 pay deal agreed to review and reform appraisal and incremental progression arrangements for Agenda for Change staff. Moreover, even though 5% of modern Scottish apprenticeships were targeted towards ethnic minorities, only 2.1% filled those posts. If the proposals have already been implemented, then a submission must be provided by the Sponsor Director to the Remuneration Group together with an explanation for why this has occurred. This may be achieved by removing any existing bonus arrangement. Your feedback will help us improve this site, Find During those negotiations we have agreed to further discussions on four areas of reform. out more about cookies, www.gov.scot/Topics/Government/Finance/spfm/taxavoidance, www.gov.scot/publications/public-bodies-information-update-109-public-sector-pay-policy/, www.gov.scot/Topics/Government/public-sector-pay/RemunerationGroup, Job evaluation system used, date and results; date of increase in role / responsibility (where relevant) While the evaluation report need not be part of the Business Case, the Finance Pay Policy team will still require sight of it, Advice from the Finance Pay Policy team if new appointment or changes to the public body itself, Relevancy and justification of labour market selected; comparator organisations used; median of salaries in that labour market, date of sample, Set out the pay differential over senior management team; if differences are proposed set out justification / rationale, Minima and maxima; further justification required if this exceeds the maximum in the Framework; must be less than the ceiling in the Framework, Must be within lowest quartile, or clear justification for higher starting point. 4.6 In calculating any award, the expectation is that progression, where eligible, will be considered first prior to applying the basic award. Fair Work First means investment in skills and training, no inappropriate use of zero hours contracts, action on gender pay, genuine workforce engagement, including with trade unions, and payment of the real Living Wage. The Scottish Government's commitment, for staff under its direct control, to a living wage and a 3% uplift for those earning £30,000 or less directly benefits those on the lowest incomes and will continue to provide protection to low earners in particularly those individuals … Please discuss any other life cover / health related proposals with the Finance Pay Policy team. The Scottish Government has been accused of failing to value the work of senior civil servants after it announced a split public sector pay plan that means top officials could get an increase below 2% next year. “We need the Scottish Government to work with industry to improve pay, progression and productivity in three sectors which account for half of all … The Finance Pay Policy team will also notify the Remuneration Group at the next meeting. comparator, the Scottish Government, the pay progression journey time for SPS staff to reach the maximum of the pay scale at grade 5, 6 and 7 level are 1 year longer and in some cases 2 years longer. 4.60 If the proposed temporary Chief Executive is to be an internal candidate, then the proposed salary should be based on the public body's existing temporary responsibility allowance or temporary promotion scheme. 4.79 If the proposals are referred to the Remuneration Group, then these are normally considered at the next available Remuneration Group meeting. Market comparisons should be made on the basis of similarly weighted posts. This is summarised in the following table. It is not expected for the minimum and maximum (or ceiling) of the proposed pay range pay range to be simply the minimum and maximum of that Pay Band in that Framework. Otherwise, a public body must set out in the business case comparison of costings and implications of personal tax and insurance costs, that supports the proposed arrangement. In his Budget statement to the Scottish Parliament yesterday, the Scottish Government’s finance secretary Derek Mackay said he remained committed to providing pay increases above the 1% cap that … Future annual increases will remain subject to the Pay Policy in place at that time and will require Scottish Government approval. 4.61 Should a fixed‑term appointment be considered appropriate, then the approval process for new appointments, as outlined earlier in this section, should be followed and approval by the relevant senior officials or the Remuneration Group will be required. out more about cookies, Coronavirus (COVID-19): what you need to know. 4.62 Remuneration arrangements for temporary Chief Executive may differ to those for the outgoing Chief Executive and should not necessarily have a bearing on those of any future permanent Chief Executive. 4.59 Any proposals to appoint a temporary, interim or acting Chief Executive (for example, a member of staff on temporary promotion) must first be discussed with the Finance Pay Policy team prior to implementing such an arrangement. The most important consideration the Scottish Government must make is that the gender pay gap is a symptom of our labour market. In the face of continued financial constraint and to safeguard the delivery of newly devolved public services, pay increases must continue to be carefully controlled. 4.38 Under the pay policy, future basic awards and progression cannot be guaranteed. The approval approach being taken under the Pay Policy for Staff Pay Remits by the public body (fast-tracked, streamlined, full remit) bears no relation to how the pay proposals for the Chief Executive are approved and these should follow the steps outlined in this guide. The 2020-21 Public Sector Pay Policy is a single-year policy. APPENDIX 3: RATES OF PAY - TABLE 6 Pay progression based on 2020-21 rates . Issues with the process. While the Scottish labour market has improved in some ways in recent years, we continue to suffer from lower rates of in-work progression and productivity than the UK as a whole, and pay rates also lag behind. for scales above £80,000, • Larger increments and faster progression for staff Performance based pay progression of up to 4% based on performance in the year 2012-13 for staff on all pay ranges who are Health Workforce and not at the maximum of their pay range. ... made up of an increase to the minimum and maximum of the pay range of 1.50% and a “progression increase”, limited to the maximum of the pay range. https://www.gov.scot/publications/scottish-public-sector-pay-policy-2020-21 4.29 Public bodies may provide additional evidence where the labour market, from which the Chief Executive might be recruited, is wider in scope than the Scottish public sector labour market. In developing this policy, Ministers have taken into account the impact of inflation on working households, balanced with what public sector employers can reasonably afford and a fair deal for public sector workers. 4.27 Only in exceptional circumstances would the appointment of a new Chief Executive on a spot rate be considered for approval. The Director of Budget and Public Spending will then confirm formal approval. Incremental pay progression NHS Scotland will continue to work on the principle that staff should automatically progress through increments associated with their pay band. Any submission to Ministers must go to the Cabinet Secretary for Finance, Economy and Fair Work as well as the Portfolio Minister. Annex A has a table setting out the pay rates over the three years from 2018. Gov.scot uses cookies which are essential for the site to work. 4.46 The pay policy expectation is that the pension arrangements for the Chief Executive should be in line with those for other staff of the public body. In addition, the main Scottish Government pay remit has to be approved by Ministers. In such circumstances, public bodies must still provide details of the scheme when seeking Scottish Government approval of the remuneration proposals. 4.34 Under no circumstances should the minimum, maximum or ceiling of the Pay Band be taken as the Chief Executive's pay range. Note: it is not the proposed salary, proposed pay range or current Tier of the body (in relation to the Chair and Members Daily Fee Framework) that determines the Chief Executive's Pay Band in the Scottish Chief Executive Pay Framework, but the job weight evaluation score of the role and responsibility of the Chief Executive post. The Scottish Government's Public Sector Pay Policy is based on the following principles: This Public Sector Pay Policy builds on Scottish Ministers' progressive approach to public sector pay since lifting the 1 per cent pay cap in 2018-19. 4.35 The pay policy expectation is that the maximum of the proposed pay range should be no greater than the median of base pay of similarly weighted posts in the relevant labour market. The Scottish Police Authority confirmed the award will be backdated to … In such circumstances, public bodies must consult the Finance Pay Policy team before reaching agreement with the incoming Chief Executive. Where the latter occurs, the minute from the Chair of the Remuneration Group must be annexed to the submission to Ministers. In addition, the main Scottish Government pay remit has to be approved by Ministers. 4.5 Where a Chief Executive is eligible for pay progression this is limited to a maximum of 1.5 per cent and the increase should not result in the Chief Executive's pay exceeding their pay range maxima. Approval will be given only where a clear financial benefit and a business need can be demonstrated. 4.51 However, where a Chief Executive is required to travel extensively as part of their duties, it may be cost effective to make arrangements regarding a dedicated car (for example; lease car, car allowance, etc.). pay claim in 2017 that told the UK and Scottish government to Pay Up Now! 4.72 Where the proposed annual award is wholly in line with Pay Policy and the Sponsor Team has confirmed affordability, the proposals will be 'signed‑off' by the Finance Pay Policy team. 4.75 Any proposals for a new Chief Executive appointment to a new body or a review of an incumbent Chief Executive's remuneration package must be approved by the Remuneration Group. This notification should be copied to the Finance Pay Policy team. Such issues should be discussed with the Finance Pay Policy team in the first instance. The Remuneration Group may refer some items to Ministers. The Scottish Government Health Workforce Pay,Terms and Conditions and Workforce Planning PAY AND CONDITIONS OF SERVICE EXECUTIVE AND SENIOR MANAGEMENT PAY 2015-16. The policy position is that this payment should be in addition to any progression increase (where eligible). The Scottish Government implemented a pay freeze for the majority of public sector staff under its direct control in 2011-12 and this pay freeze continued into 2012-13. 4.30 When developing pay range proposals, the public body must consider the relationship and pay differentials between the remuneration of the Chief Executive and members of the senior management team (or the most senior level of Director below the Chief Executive). 4.67 If proposals are simply to apply the annual uplift in line with Pay Policy, then a completed Chief Executive proforma, signed‑off by the Chair of the public body should be sent jointly to the Finance Pay Policy team and the Sponsor Team. (i) the Scottish Government's core departments and (ii) the Scottish Government's external agencies received pay progression increases in each of the last five financial years, including 2018/19 to today’s date. out more about cookies, To invest in our public sector workforce which delivers top class public services for all, supports employment and the economy, while providing for sustainable public finances, To provide a distinctive pay policy which is fair, affordable, sustainable and, through the targeting of resources, delivers value for money in exchange for workforce flexibilities. This includes the Scottish government contributing an additional £35m for teachers' pay. Your feedback will help us improve this site, Public sector pay policy 2020-2021: technical guide, 5. The Finance Pay Policy team can provide a list of comparable Chief Executives of Scottish public bodies and remuneration information. 4.41 Since 2010, the Pay Policy has included the expectation that the remuneration of a new Chief Executive appointment will be at least 10 per cent lower than that of the outgoing Chief Executive. It represents a less than 1% annual pay increase for Scottish Government permanent secretary Leslie Evans, based on her pay range of between £165,000 and £169,999. 4.68 Any proposals that go beyond that, will need to provide further information in line with the approval route set out in the following chart. Cons In my team at least, there's a bit of a feeling that people are there to 'do their hours' and less opportunity for … 4.81 If any payments are made without approval being obtained, this could result in punitive action being taken by the Scottish Government, such as the recovery of any overpayments, the capping of future increases or a governance review of the public body. Public bodies should publish data on their ethnicity pay gaps to help tackle racism, a committee of MSPs has said. This should also include other options considered, for example; a pool car and the arrangements in place for other staff. In addition, there is a presumption against provision for non‑consolidated performance payments in all new Chief Executive contracts or following a review. out more about cookies, Coronavirus (COVID-19): what you need to know. Scottish public sector pay policy for the year 2020 to 2021 for devolved public bodies. Holyrood's Equalities and Human Rights Committee said the action would help address "decades of damage" on pay disparity and career progression. 4.71 Approval will also be required if any changes to a public body's staff handbook are being proposed which will have the effect of amending or revising any aspect of those elements of a Chief Executive's reward package covered by the Pay Policy. 4.20 The fact that a Chief Executive may have reached the maximum of the existing pay range or has fallen behind the market is not sufficient justification to review the pay range. If the issue is complex and is likely to take longer, then the Finance Pay Policy team will advise the sponsor body and Sponsor Team. 4.21 When developing a remuneration package for a Chief Executive, the following elements must be considered and covered in the business case, along with supporting evidence. Payments must comply with the Tax Planning and Tax Avoidance section of the Scottish Public Finance Manual: www.gov.scot/Topics/Government/Finance/spfm/taxavoidance, 4.16 If a Chief Executive (or other senior employee) of a body covered by the Scottish Government Public Sector Pay Policy is considering accepting a public appointment or Non‑Executive Directorship in addition to their existing role, then factors to be taken into account by the Chair / Board and Sponsor Team of the employing body include: conflict of interest; time commitment; and remuneration. 4.9 The Scottish Chief Executive pay bands are uplifted annually in line with the pay policy and the Framework for 2020‑21 is as follows: 4.10 The salary and pay range of a Chief Executive is expected to lie within the minimum and maximum of the relevant Scottish Chief Executive Pay Band. If the proposed starting salary is beyond the lowest quartile then the public body should set out in its business case the proposed salary and why such a salary is considered necessary. When developing remuneration proposals it should be noted that no commitment to levels of future annual increases (basic award or progression) should be given. 4.70 The extent to which a new appointment requires actual Ministerial approval is dependent on the legislative arrangements for that particular public body. The approval route will depend on the circumstances of your proposals as set out below and in the following chart. Any data collected is anonymised. A formal job evaluation of the role and responsibilities of the Chief Executive post should be undertaken. Ministers acknowledge that maintaining employment, delivering wage growth and fair rates of pay in the public sector are crucial in ensuring Scotland's economy remains strong and that investment in Scotland's public services remains a priority. 4.25 The Finance Pay Policy team must be consulted in determining the identification of the appropriate Pay Band and approval will include the Pay Band as well as the remuneration. Civil servants working for the Scottish Government in the have voted to accept a pay deal that will see them receive a rise of 3% from next month. 4.19 While it is normally good practice to review remuneration arrangements on a regular basis, the Scottish Government would not expect a review of the Chief Executive's remuneration package to be undertaken unless there has been a significant change in the role and responsibility of the post. NHS Scotland Executive and Senior Management posts, 6. The Finance Pay Policy team will advise whether approval by the relevant senior officials or the Remuneration Group will be required. Normally, market data would exclude London-based posts. 4.5 Where a Chief Executive is eligible for pay progression this is limited to a maximum of 1.5 per cent and the increase should not result in the Chief Executive's pay exceeding their pay range maxima.
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