Public Sector Pay Policy for Staff Pay Remits 2009-10

Pay policy for all Scottish public sector bodies whose pay requires the approval of Scottish Ministers.


Baseline Paybill

The cost of employing your staff for the 12 months of the pay remit year before you implement the pay award and includes mandatory increases in pensions contributions or employers National Insurance Contributions. It excludes the costs of increases in pay and benefits for which you are seeking approval.

Basic Award

The inflation or cost of living element of the pay award. It is one element of a standard remit. The Basic Award has different meanings in different pay systems. For public bodies with a step or spine based system it refers to the revalorisation of steps/spines. For those without step or spine based mechanisms for pay progression the basic award will generally be defined as the consolidated increase to the pay range maxima and/or milestones.

Business Case

The document that contains information and argument that supports the proposals you are making.


The offering of a one off non-consolidated payment in return for agreeing to the removal of a particular pay or non-pay reward.


The principle of aligning levels of pay towards a market median with the aim of making sure that individuals undertaking similar roles in different public bodies receive similar levels of pay.

Consolidated Performance Payments

Payments that reward exceptional or outstanding performance and are consolidated into individual employees' basic pay.


A process of equalising the pay and benefits of two or more groups of staff usually following a merger.

Increase for Staff in Post ( ISP) Percentage

This is the cost of the proposed increase in pay and benefits as a percentage of the baseline paybill.

Increase in Paybill per Head

The result of comparing the Paybill per Head for the current remit with the Paybill per Head for the last remit. It is expressed as a percentage of the Paybill per Head for the last remit.


The highest point on a pay scale, sometimes known as the rate for the job.

Net Paybill Increase (formerly Headline Cost)

This is the percentage increase to the baseline paybill as a result of your pay proposals. The New Money is the monetary value of the proposed increase in pay and benefits added to your existing paybill.

Non-consolidated Pot

Percentage of consolidated baseline paybill that and is used to make non-consolidated payments such as bonuses or performance payments to staff on their maxima. Once established, the percentage is carried forward in the baseline paybill each year.

Non-consolidated Payments

Payments that are not consolidated into basic pay. They are not pensionable and are awarded to staff based on performance at an individual, team or organisational level. Such payments are re-earnable and do not have associated future costs.

Particular Labour Market

The labour market that reflects the comparators for particular workforce group(s). It consists of the bodies that your organisation has lost staff to or gained staff from in recent years. It may be a specific or specialist labour market.

Pay Ranges

The pay scale for each grade or role within a public body, with a minimum and a maximum or target rate and through which staff progress as they develop in knowledge, skills, experience and performance.

Pay Remit

Pay proposals made by public bodies that seek approval for increases in pay and benefits for staff.


The full annual cost of employing your staff, including National Insurance and Employer's Pension Contributions.

Paybill per Head

The cost of employing staff following the implementation of the pay award as divided by the number of staff (full time equivalent).

Paybill savings

Savings in your paybill that can be re-utilised to part fund a pay award. They can include recyclable savings (see below); savings resulting from the removal of outdated allowances; reductions in overtime costs and reductions in staffing.


Excel spreadsheets that set out what was actually paid as a result of the last pay award; the costs of the increase in pay and benefits that you intend to make and details of your pay and reward structure as well as details of current and projected staffing.


The movement that an individual makes from the minimum of a pay scale to the maximum or target rate. The policy expects the movement to be dependent on performance or competency.

Progression journey times

The number of years it takes to move from the minimum of a pay range to the maximum or target rate.

Public Sector Labour Market

The labour market data provided by Finance Pay Policy. This is the public bodies in Scotland subject to Scottish Government policy on public sector pay, UK Government Departments employing more than 25 staff in Scotland and Scottish Local Authorities.

Recyclable Savings

Savings that are a consequence of a more highly paid member of staff being replaced by a lower paid individual (see Paybill Savings).

Relevant Labour Market

The Scottish public sector labour market or a more appropriate specific or specialist labour market for specific workforce groups, specialisms or locations.

Salary Sacrifice Scheme

HM Revenue and Customs define a salary sacrifice as "when an employee gives up the right to receive part of the cash pay due under his or her contract of employment. Usually the sacrifice is made in return for the employer's agreement to provide the employee with some form of non-cash benefit. The 'sacrifice' is achieved by varying the employee's terms and conditions of employment relating to pay".

Standard Remit Elements

The elements that form part of almost all pay remits: progression, the Basic Award, non-consolidated payments (over and above the existing non-consolidated pot that is included the baseline paybill), consolidated performance payments and the resulting increases in the costs of overtime, allowances, employers pension contributions and National Insurance.

Standard Remit Limit

The limit placed on the Standard Remit Elements of pay proposals.


The paper to the Remuneration Group and Ministers that seeks approval for your proposed increases in pay and benefits.

Target Rates

The points in a pay system that reflect competence in a role, often the maxima of the pay ranges.

Total Increase for Staff in Post

The full costs of the proposed increases in pay and benefits regardless of whether they add costs to the paybill.

Total Reward

All rewards for staff, including base pay, performance related pay, bonuses and employee benefits, such as flexible working and training & development opportunities.


The movement of staff out of and into your organisation in a year.

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