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Public sector pay policy 2022 to 2023: technical guide

Supports the application of the 2022 to 2023 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.

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1. What is new for 2022-23

What is new in this Technical Guide for 2022-23?

1.1 The following highlights what is new and where it can be found within this document:

Feature Refer to paragraphs
Pay policy metrics for 2022-23 1.4 to 1.6
Extension of the flexibilities to include non-consolidated payments 1.4 and 2.47
Inclusion of introduction of the discretion for employers to work towards a 35 hour working week 1.4 and 2.45
Application of the wage floor 3.28 to 3.29
Update to the wellbeing section 2.43 to 2.45
Introduction of optional public service reform approach to pay 3.156 to 3.182

What are the key features of the Public Sector Pay Policy for 2022-23?

1.2 The Public Sector Pay Policy for 2022-23 was announced in the Budget statement on 9 December 2021. The policy sets the parameters for public sector pay increases for the period 2022-23 for both staff pay and senior appointments within a range of public bodies in Scotland and for Public Appointments not linked to a public body. The policy introduces the option for employers to consider a strategic, multi-year approach to pay in the context of public service reform. Sections 3.156 to 3.182 provide further detail for those employers considering multi-year proposals.

1.3 The policy is available on the Scottish Government website at:

Public sector pay policy 2022-23

1.4 The key new features of the pay policy in 2022-23 are:

  • Delivering a progressive approach to pay increases by:
    • setting a guaranteed wage floor of £10.50 per hour, going beyond the current real Living Wage rate of £9.90;
    • providing a guaranteed cash underpin of £775[1] for those earning a fulltime equivalent salary of £25,000 or less;
    • providing a basic pay increase of £7001 for those with a fulltime equivalent salary of more than £25,000 and up to £40,000; and
    • providing a basic pay increase of £5001 for those with a fulltime equivalent salary of more than £40,000.
  • Providing the flexibility for employers to use up to 0.5 per cent of 2022-23 baseline salaries to address clearly evidenced equality or pay coherence issues. Public bodies must demonstrate that all such proposals can be wholly funded by savings at the point of implementation and in future if the proposals result in changes to existing pay and grading structures. The inequalities can include:
    • to consider non-consolidated payments to address cost of living increases,
    • targeted increases to address pay coherence (see paragraph 2.47 ),
    • working towards standardising to a 35 hour working week if and when it is practical to do so (see paragraph 2.45).
  • Introducing the requirement for employers to have meaningful discussions with staff representatives about the Right to Disconnect (see paragraph 2.46).
  • Introducing an optional public service reform, multi-year approach to pay.

1.5 The 2022-23 pay policy also continues:

  • To retain discretion for individual employers to reach their own decisions about pay progression (limited to a maximum of 1.5 per cent for Chief Executives) outwith the pay metrics for basic award increases.
  • To encourage the promotion of wellbeing in the workplace and a healthy work-life balance.
  • To maintain the suspension of non-consolidated performance related pay (bonuses).
  • The expectation to deliver a 10 per cent reduction in the remuneration packages for all new Chief Executive appointments.
  • The commitment to No Compulsory Redundancy.

What are the pay thresholds for 2022-23?

1.6 The policy continues to target lower earners while restraining increases for higher earners to address pay erosion for those facing the greatest detriment and to continue to help work towards reducing overall income inequality. The thresholds for 2022-23 are set out in the following table and apply to all employees, senior appointments and those who are paid a Daily Fee:

Threshold Coverage
Lower pay threshold (£25,000) Below the Lower pay threshold: All employees with a fulltime equivalent salary of £25,000 or less prior to applying the 2022-23 pay award.
Intermediate pay threshold (£40,000) Between the Lower and Intermediate pay thresholds: All employees with a fulltime equivalent salary of more than £25,000 up to £40,000 prior to applying the 2022-23 pay award. For public and Ministerial appointments who are paid a Daily Fee this equates to a daily rate of £154 or less per day before any uplift. Above the Intermediate pay threshold: All employees with a fulltime equivalent salary of more than £40,000 prior to applying the 2022-23 pay award. For public and Ministerial appointments who are paid a Daily Fee this equates to a daily rate of more than £154 per day before any uplift.

Where will I find the key policy information in this Technical Guide?

1.7 The following sign-posts you to the relevant sections in this document on the application of the key features of the pay policy:

Feature Staff Chief Executives[2] Chairs, Board Members and Public Appointments
Application of the guaranteed wage floor 3.26 to 3.31 not applicable not applicable
Application of the guaranteed cash underpin of £775 3.32 to 3.33 not applicable not applicable
Application of the basic pay increase of £700 3.34 to 3.44 not applicable 6.10
Application of the basic pay increase of £500 3.48 to 3.58 4.3 6.10
Paying progression 3.65 to 3.71 4.4 to 4.5 5.3 to 5.42 not applicable
The flexibility to use paybill savings to address pay inequalities 3.75 to 3.81 not applicable not applicable
Standardising to a 35 hour working week 2.45 2.45 not applicable
Multi-year public service reform approach to pay 3.156 to 3.182 not applicable not applicable

Contact

Email: FinancePayPolicy@gov.scot

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