Scottish Budget 2026 to 2027: integrated public sector pay and workforce policy
Outlines Scotland’s integrated approach to public sector pay and workforce planning for 2026–27. It states an intention to set pay parameters, workforce reform measures, and a governance framework to deliver fiscal sustainability while supporting service redesign and protecting front line delivery.
Public Sector Pay
The Public Sector Pay Policy 2025-26 to 2027-28 sets an overall pay envelope of 9% over three years, with a cap of 3% for any single-year deal. This document reflects the second year of that policy and restates these metrics within the context of the new Integrated Pay and Workforce Policy.
The Cabinet Secretary for Finance and Local Government has acknowledged that many multi-year deals cover only two years of the three-year policy. To address this, Cabinet Secretary has committed to review the pay policy as part of the 2027-28 Budget process.
Looking ahead, any future Integrated Pay and Workforce Policy will also:
- Consider the inclusion of inflationary-related clauses;
- Provide guidance on managing overlapping pay policies, ensuring clarity for public bodies and the wider workforce;
- Continue to assess the impact of progression; and
- Recognise the connection between pay policy and workforce management as dual drivers of fiscal sustainability.