1. Public Sector Pay Policy sets out the key considerations that Scottish public sector bodies should take into account in framing their pay proposals for 2007-08. Ministers expect to continue to see lower levels of settlement in 2007-08. The forthcoming Spending Review, tight financial outlook, the Consumer Price Index ( CPI) inflation target of 2.0%, and the low headline increase of 1.4% for the Senior Civil Service all set the tone for pay increases, and underlines the commitment to constrained and sustainable settlements.
2. Public Sector Pay Policy applies to those public sector bodies whose pay requires the approval of Scottish Ministers. This includes the Scottish Executive and associated Departments which have their own pay bargaining units, Executive Agencies, NDPBs, Public Corporations and Nationalised Industries.
3. The policy for 2007-08 applies to all of the above bodies who require approval for proposed pay increases between May 2007 and April 2008 (inclusive).
4. The "Public Sector Pay Policy: Supporting Technical Guide" should be read in conjunction with this document. It contains details of the process for gaining approval for pay remits, including a checklist on the elements which should form part of any detailed business case. The Technical Guide also contains definitions of the terms used in the proformas which are required to be completed.