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Public Sector Pay Policy 2008-09

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C: KEY PAY POLICY PRIORITIES AND KEY METRICS FOR 2008-09

What are the key pay policy priorities for public bodies seeking new pay settlements in 2008-09?

1. The tight financial settlement for Scotland over the next three years means that public bodies must deliver affordable and sustainable pay settlements. Public Bodies should target resources at addressing the key pay policy priorities:

  • inequalities within pay and reward systems and structures; and
  • recruitment, retention or motivation issues that directly impact on a public body's ability to deliver outcomes.

Can you make proposals that cover more than one year?

2. During 2008-09 public bodies may negotiate and put in place pay awards for one or more years. Knowing the level of pay increases for future years brings certainty for employers and staff, but the length of any pay deal is a matter for each public body and its recognised trade unions. Public bodies should set out their plans in their business case but if they do not propose to enter into a multi-year pay deal provide a short explanation as to why not.blue box text

What are the key metrics that we will use to assess your pay remits?

3. In 2008-09 we will use three key metrics:

1) The Increase for Staff in Post percentage. This is the cost of the increase in pay and benefits for staff within a public body as a percentage of the baseline paybill (the paybill for these staff immediately prior to the 2008-09 pay round) (See Chapter D, paragraphs 1-9);

2) The basic award percentage. This is the consolidated percentage increase for staff that applies in addition to the progression or consolidated performance pay element of the pay award (See Chapter D, paragraphs 10-14); and

3) The new money or headline cost of the pay remit. This is how much the paybill will increase by, as a result of your pay proposals (See Chapter E, paragraphs 3-6).

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Page updated: Thursday, May 22, 2008