Public sector pay policy for senior appointments 2019-2020: technical guide

Supports the application of the 2019-2020 public sector pay policy and covers the remuneration of chief executives of Scottish non-departmental public bodies and public corporations, chairs and board members of public bodies in Scotland and NHS Scotland executive and senior management posts.

6. Glossary

Assimilation point: The position of a salary on a proposed pay range which reflects the number of years' experience of a Chief Executive at the current weight of post.

Base pay: The annual salary excluding the monetary value of any non‑consolidated performance payment (bonus), pension and other non-salary rewards, etc. Also known as 'basic pay'.

Basic award: Normally, the increase available to Chief Executives on spot rates and one element (the other being 'progression') of the award to Chief Executives on pay ranges. It is usually the inflation or cost of living element of the pay award, sometimes referred to as 'revalorisation'.

Bonus: See non‑consolidated performance payment.

Business case: The document which contains evidence and information in support of the proposals you are making.

Ceiling: The absolute limit for salary / pay range maxima in the Scottish Chief Executive Pay Framework or for a daily fee in the Daily Fee Framework.

Consolidated: Pay which is taken into account for pension purposes.

Daily fee: The amount a Chair or Member is remunerated per day. This can be expressed as an annual sum, but changes to the number of days worked should not result in a change to the daily fee. The fee may be paid in a half‑day or hourly amounts.

Daily Fee Framework: The Framework within which the daily fee of a Chair or Member of a Scottish public body is expected to sit. It contains minima, maxima and ceilings for four bands of public bodies.

Gross daily fee: The daily fee inclusive of any pension contribution made by the public body.

Journey time: The time (in years) taken by a Chief Executive on a pay range to move (subject to satisfactory performance) from the minimum to the maximum of that pay range.

Market median: The middle point of comparator salaries in the relevant market for similarly weighted posts.

Market rate: The market median in the relevant market for similarly weighted posts.

Maximum / Maxima: The highest point on pay range(s), sometimes known as the rate for the job. Staff are not normally paid above the maximum of their pay range. There should also be arrangements to move such staff onto their pay range maxima within a defined time scale.

Median: The middle point in a series.

Minimum / Minima: The lowest point on pay range(s). Staff are not normally paid below the minima of their pay range.

Non-Consolidated Performance Payment (bonus): The non-consolidated, non-pensionable performance-based element in the remuneration package for some Chief Executives. There is a presumption against the introduction of a non‑consolidated performance payment arrangement. In exceptional circumstances, where a non‑consolidated performance payment arrangement is considered necessary, the pay policy expectation is that the maximum potential non‑consolidated performance payment will be no more than 10 per cent of base pay in the appraisal year to which performance relates. Non‑consolidated performance payments are retrospective and can only be determined after the performance year has concluded – therefore a payment offered in one year will reflect exceptional performance in the previous performance year and so on. As they are a payment in the year following the performance year, they are subject to the Pay Policy for the payment year and not the performance year.

NHS Executives: In respect of this Technical Guide, NHS Scotland Executives and Senior Management posts in Grades D to I only. NHS Scotland Executives and Senior Management posts in Grades A to C remain covered by the Pay Policy for Staff Pay Remits.

Non-salary Rewards: Remuneration other than pay, for example, car, health insurance, etc.

Pay Band: The category (1, 1A, 2 or 3) within the Scottish Chief Executive Pay Framework to which a Chief Executives is allocated following a job evaluation exercise. It reflects equivalent Senior Civil Service bands. There is not necessarily any relationship between the pay band of a Chief Executive and the tier of the body to which they are appointed.

Pay Range: The pay scale for a Chief Executive with a minimum and a maximum and through which they progress as they develop in knowledge, skills, experience and performance. It is not normal for staff to be paid at a level either below the pay range minimum or above the pay range maximum. The pay range is not simply the minimum to maximum (or ceiling) in the Chief Executive Pay Framework

Progression: The movement a Chief Executive may make up a pay range to the maximum, subject to satisfactory performance. Progression is subject to satisfactory performance but is not guaranteed (unless a multi-year agreement pay arrangement has been approved).

Quartile: In relation to a pay range: 25 per cent of a pay range, for example, the lowest quartile will be the pay range from the minimum to a point 25 per cent up that pay range.

Relevant labour market: The labour market that reflects the relevant comparators for the particular post. It consists of the market from which the Chief Executive, Chair or Member(s) might be recruited. This would normally be expected to be the Scottish public sector labour market in the first instance.

Scottish Chief Executive Pay Framework: The framework of minima, maxima and ceilings within which the pay of a Chief Executive of a Scottish public body sits.

Settlement date: The date on which any review of salary would normally be implemented.

Spot rate: A single salary figure which reflects the market rate for that post.

Submission: The paper to the Remuneration Group which seeks approval for proposed increases and changes in remuneration. Submissions to the Remuneration Group must issue from the relevant Sponsor Director. The Sponsor Director may delegate this responsibility to a Deputy Director in specific circumstances where the Deputy Director has a closer working relationship with the public body or when annual leave commitments would result in submissions missing the Remuneration Group deadlines.

Tier: The category (1, 2, 3 or Tribunal band) within the Daily Fee Framework to which a public body is allocated for the purposes of assessing daily fees. There is not necessarily any relationship between the pay band of a Chief Executive and the tier of the body to which they are appointed.

Total Cash Reward: All rewards available to a Chief Executive, including base pay, performance related pay, non-consolidated performance payments (bonuses) and employee benefits, such as flexible working, training and development opportunities.



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