Public sector pay policy 2022 to 2023: technical guide

9. Pay Policy Quick Reference

Guaranteed Pay Increases and Thresholds

• Cash underpin of £775 for those earning a fulltime equivalent salary of £25,000 or less.
• Basic pay increase of £700 for those with a fulltime equivalent salary of more than £25,000 and up to £40,000.
• Basic pay increase of £500 for those with a fulltime equivalent salary of more than £40,000.

Low pay measures

• Sets guaranteed wage floor of £10.50 per hour, going beyond the current real Living Wage of £9.90.
• Cash underpin of £775 for those earning a fulltime equivalent salary of £25,000 or less.

Addressing inequalities

• Provides the flexibility for employers to use up to 0.5 per cent of paybill savings to address evidenced equality or pay coherence issues, or to consider non-consolidated payments to address cost of living increases.

Other Elements

• Retains the position on progression as a matter for discussion between employers and their staff and/or representatives (limited to a maximum of 1.5 per cent for Chief Executives).
• Continues to encourage employers to work towards standardising to a 35 hour working week.
• Introduces the requirement for employers to have meaningful discussions with staff representatives about the Right to Disconnect.
• Continues the commitment to No Compulsory Redundancy. Maintains the suspension of non-consolidated payments (bonuses).
• Continues the expectation to deliver a 10 per cent reduction in the remuneration package for all new Chief Executive appointments.