This policy can be made available in other languages and formats such as large print and audio on request.
What is it?
The pay policy statement sets out the council’s approach to pay and reward for senior managers and the lowest paid employees for the financial year 2016-2017.
Its purpose is to provide a clear and transparent policy, which demonstrates accountability and value for money. The policy also meets the council’s obligations under the Localism Act 2011 and the Code of Recommended Practice for Local Authorities on Data Transparency.
The pay policy is applicable to council staff and does not include schools support staff or teachers.
The pay policy statement sets out the authority’s policies for council staff for the financial year relating to:
- the remuneration of chief officers
- the remuneration of the lowest-paid employees
- the relationship between the remuneration of chief officers and employees who are not chief officers.
Remuneration for the purposes of this statement includes three elements:
- basic salary
- any other allowances arising from employment
The term “chief officer” in this instance applies to more posts than the usual council definition, and includes the following senior manager roles:
- Corporate Director
- Associate Director
- Head of Service
- Some specialist roles
The term “lowest paid employees” refers to those employees on the lowest spinal column point (scp) of our grading system. This is scp 6 of grade A, which is currently £13,614 per annum.
Go straight to the section:
- Who does it apply to?
- When does it apply?
- What are the main points?
- The level and elements of remuneration for employees
- Remuneration on recruitment
- Increases and additions to remuneration
- The use of performance-related pay
- The use of bonuses
- The approach to the payment of employees on their ceasing to be employed by the authority
- The pension scheme
- Any other allowances arising from employment
- Governance arrangements
- The publication of and access to information relating to remuneration of chief officers
- The relationship between the remuneration of chief officers and employees who are not chief officers
Wiltshire Council is a large and complex organisation providing a wide range of services to the community, with an annual budget of £313,585m (2016/17).
In order to deliver these services around 11,521 people work for the council, 4,840 of whom work in the council (non-schools), in a variety of diverse roles such as corporate director, social worker, public protection officer and general cleaner.
The council published the Business Plan 2013 – 2017 in September 2013. At the heart of the business plan is the vision to create stronger and more resilient communities, and the four year plan sets out the key actions that will be taken to deliver this. The key priorities are to continue to protect the vulnerable in our communities, boost the local economy and encourage communities to come together and provide support so they can do more for themselves.
This is set against a background of continuing budget cuts from central government whilst there is an increasing service delivery expectation. In order to help meet this expectation, the job family approach is currently being implemented across the council with the expectation that all employees will be moved into role profiles which describe different levels of work during 2016. The job family approach will allow greater clarity of career paths for individuals and will provide greater flexibility of staff which is key to effective service delivery when resources are limited.
The coming year will be challenging with the council having to find innovative ways to deliver services within strict cost parameters. It is now more important than ever to ensure the council has the right people in the right place at the right time to deliver services, and the focus will be on developing our future leaders in order to drive efficiencies and excellence. An annual review of market pay for senior roles will ensure the council is able to compete in the jobs market to recruit and retain the right people in these senior roles.
The forthcoming legislation and government initiatives planned for 2016/2017 will have an impact on pay arrangements. The new National Living Wage (NLW) will be introduced from 1 April 2016 with a new hourly rate of £7.20 and increasing to over £9.00 by April 2020. From April 2016, it will result in the bottom 3 spinal points of Wiltshire Council’s pay range being below the new NLW rate of £7.20, and action will need to be taken to rectify this. The government has also indicated there will be a 1% cap on public sector pay awards for the next 4 years from 2016/17.
The government has also announced that Gender Pay Gap legislation for organisations to provide gender pay gap information will be extended to include the public sector. Regulations on when and where the data should be published will be set out in due course. In addition, the government has proposed a cap on public sector total exit payments at £95,000. As well as redundancy pay this payment will include any compensation payment as a result of a voluntary exit, any payment in lieu of notice, and the costs associated with early access to an unreduced pension. The exit payment cap will have implications for the Wiltshire Council’s redundancy pay policy and the current voluntary redundancy procedure. There is also an expectation that nationally the LGPS will need to be reviewed and the early retirement regulations amended as a result.
This pay policy statement applies to all non- schools employees of Wiltshire Council with the exception of Centrally Employed Teachers who fall under the Teacher’s Pay Policy.
This pay policy statement was originally published in February 2012 and has been updated for the financial year 2016/2017. It will be reviewed and updated on an annual basis.
1. This pay policy statement sets out the pay policies which apply to both the lowest paid and highest paid employees within the council.
2. In many cases the pay policies are the same for all employees. Where there are differences, these have been clearly outlined below.
3. In line with good employment practice the majority of jobs within the council have been evaluated using a job evaluation scheme. This is to ensure that jobs are graded fairly and equitably, and that the council complies with the Equal Pay Act.
4. A small number of jobs i.e. Youth and Community workers, centrally employed teachers and Soulbury staff are subject to national salary scales which determine the pay for each job, and therefore the evaluation schemes do not apply.
5. The council uses two job evaluation schemes in order to rank jobs.
Hay job evaluation scheme:
6. The Hay job evaluation scheme is used to evaluate senior manager jobs within the council (currently 112 employees), which include the following roles:
- Corporate Director
- Associate Director
- Head of Service
- Strategic and technical specialists
7. Each job is assessed by a panel of three Hay trained evaluators. The evaluators consider the job against each Hay element and sub-element and apply the description and points that best fit the job being evaluated. The values awarded are subsequently added together to give a total job score.
8. The Hay Group periodically carry out quality control checks to ensure the consistency of job scores in line with the conventions of the scheme.
9. The job score determines the grade the job. There are six Hay grades each containing a salary range over 4 spinal column points.
10. See the Hay job evaluation scheme Hay job evaluation scheme 128kb, the Hay job evaluation scheme - points to grades Hay job evaluation scheme - points to grades 66kb and Hay job evaluation scheme - salary bands Hay job evaluation scheme - salary bands 14kb for further details.
11. The council’s policy is to pay the median market rate for the jobs evaluated using the Hay job evaluation scheme, and aims to ensure that the pay scales for Hay graded posts are sensitive to labour market pressures. There are no national pay scales for senior roles so pay is a matter for local determination. Pay scales for Hay grades are determined using the Hay pay databank for the public and not for profit sector and are reviewed on an annual basis and realigned should a pay drift be identified.
Greater London Provincial Council job evaluation (GLPC) scheme:
12. The GLPC job evaluation scheme is used to evaluate the majority of jobs within the council (currently 4570 employees).
13. Each job is assessed by a panel of three trained GLPC evaluators. The evaluators consider each job against a suite of agreed role profiles that set out the level of work required of the grade within the relevant job family.
14. There are 8 job families each containing a set of role profiles stating the requirements at each grade.
15. There are 15 grades, each grade containing between 3 and 4 increments except for the lowest grade which has just one salary point.. The GLPC pay grades were first implemented and agreed with the unions as part of the Pay Reform agreement in 2007.
16. See the GLPC evaluation scheme GLPC evaluation scheme 189kb, the GLPC evaluation GLPC evaluation scheme - points to grades points to grades 22kb, and NJC salary bands NJC salary bands 20kb, for further details.
17. The council aims to ensure that the GLPC scheme is appropriately applied and that there is continuity and consistency in the results. The evaluation process and a sample of the scores are checked externally by job evaluation specialists in the South West Councils organisation.
18.For jobs evaluated using the GLPC job evaluation scheme the national pay spine determined by the National Joint Council (NJC) for Local Government Services applies and changes to the national pay spine are subject to annual pay negotiations.
19. The same recruitment policies apply to all employees who take up a new appointment with the council, regardless of grade.
20. The council advertises all posts through the careers website, and may also employ a recruitment agency to provide a shortlist of candidates for senior manager jobs.
21. Candidates are normally appointed on the minimum spinal column point of the grade for the post.
22. If a candidate is currently being paid above the minimum point of the post they are applying for, the appointment may in some circumstances be on the next increment above their current salary, subject to the maximum of the grade.
23. The recruitment procedure for Corporate and Associate Director posts are undertaken by the Officer Appointments Committee. This committee represents Council for all Corporate and Associate Director appointments. Once an appointment is proposed by the committee, cabinet is required to ratify the decision and salary level within the band before the appointment is confirmed.
24. In line with the requirements of the Localism Act 2011, all chief and senior officer jobs, including those paid over £100,000 per year, are assessed by applying the Hay job evaluation scheme. The job is then allocated the appropriate existing Hay grade and pay band, and a salary offer will only be made within that pay band.
25. Where it is necessary for any newly appointed employee to relocate more than 15 miles in order to take up an appointment the council may make a contribution towards relocation expenses.
26. The council has a market supplement policy market supplement policy 159kb which stipulates that if there are recruitment difficulties for a particular post and it is shown that the council are paying below the market rate for the job, a market supplement may be paid.
27. Market supplements are only payable to a small number of jobs which are evaluated using the GLPC or HAY schemes. See the list of pay policy market supplements pay policy market supplements 84kb for current details.
28. Where skills shortages exist in specific areas, or where despite paying at the median market rate for the role the pay rate for the role is still not sufficient to recruit and retain the skills required, a rate higher than the market median may be paid. This requires the authorisation of the corporate directors.
29. The level of market supplement applied to GLPC posts is determined by analysing market data from an external source e.g. Croner Solutions. The data used for assessing market supplements for Hay graded posts is the Hay pay databank for the public and not for profit sector. The Hay databank provides the market median, upper quartile and upper decile pay range for each Hay pay grade.
30. The council’s policy is to apply the nationally negotiated NJC pay award for GLPC graded employees which takes effect from 1st April each year and which applies to the national pay spine.
31 .Most NJC employees received a pay award of 2.2% in January 2015 along with a non- consolidated variable payment, paid in December 2014, whilst those on the lower spinal points received a higher percentage increase. It has been agreed that the 2.2% pay award will apply until March 2016 as part of a pay deal for financial years 2014/15 and 2015/16.
32.For 2016/2017 the pay award is yet to be agreed. However, in his July 2015 budget, the Chancellor announced a new National Living Wage of £7.20 from 1st April 2016 and a cap on public sector pay awards of 1% for 4 years from 2016/2017 onwards.
33. For GLPC graded employees, increments are awarded automatically up to the maximum of the grade unless formal proceedings are taking place under the Improving Work Performance Policy. Increments are paid on the 1st April each year, or six months after the start date (if the starting date is between October and April) and there is no provision for the payment of an increment at any other time.
34. The council’s policy for Hay graded employees is to review salaries on an annual basis using the Hay pay databank and realign these should a pay drift be identified. As a result the JNC pay award is not applied to Hay graded employees.
35. For Hay graded employees incremental progression through the grade is based on satisfactory performance measured over a 12 month period. Increments are paid on 1st April each year subject to satisfactory performance, and a minimum of 6 months in post at that time. There is no provision for the payment of an increment at any other time.
36. The council also employs a small number of specialist employees covered by Youth and Community and Soulbury salary scales which are also negotiated nationally.
37. The council currently employees a number of public health and police staff who have TUPE’d from other organisations. These staff are subject to protected terms and conditions from their previous employers until a harmonisation exercise takes place.
38. It is the council’s policy that Hay graded employees are subject to a performance appraisal each year. If the performance is measured as satisfactory, an increment may be awarded. If the performance does not meet the required standard an increment may be withheld.
39. For GLPC graded employees, increments are awarded automatically to the maximum of the grade unless formal proceedings are taking place under the Improving Work Performance Policy.
40. The council does not offer a bonus or honorarium scheme to any employee.
41. Employees who leave the council’s employment are entitled to payment of their contractual notice, along with any outstanding holiday pay.
42. The council does not make any additional payments to employees whose employment ceases, except in the case of redundancy.
43. All employees, including chief and senior officers, are subject to the same redundancy payments policy which has been agreed by Staffing Policy Committee.
44. There is no discretion to make redundancy payments which do not comply with the policy.
45. If employees choose to volunteer and are accepted for redundancy they are entitled to a payment calculated as follows:
Statutory weeks x normal weekly pay x 2.5, capped at 40 weeks, with a minimum payment of £3000 (pro rata for part time staff).
46. If employees choose not to volunteer for redundancy, and cannot be redeployed, they will leave on compulsory grounds. The payment is calculated as follows:
Statutory weeks x weekly salary (capped at £464), with a cap of 30 weeks pay or 20 years service. There is a minimum payment of £1500 (pro rata for part time staff).
47. If employees are aged 55 or over, and have been a member of the pension scheme for at least 3 months, they are able to receive their pension and lump sum early if their employment is terminated on grounds of redundancy.
48. No augmentation to pension will apply for any employee.
49. If employees are dismissed on redundancy grounds, and receive a voluntary (enhanced) redundancy payment, they may be considered for re-employment to posts within Wiltshire Council after the minimum statutory period of four weeks has elapsed subject to the following conditions:
- The post did not exist or was not foreseeable at the time of the dismissal.
- The vacancy has been advertised in accordance with Wiltshire Council policy and procedures.
- The appointment was made on the basis of the best person for the job with regard to the usual selection procedures.
- The appointment has corporate director approval.
50. These conditions apply for 12 months from the date of the dismissal, after which the employee may be considered for re-employment to any post within Wiltshire Council.
51. All employees are entitled to join the Local Government Pension Scheme (LGPS).
52. The LGPS changed in 2014 and the benefits structure has moved from a Final Salary basis to a Career Average Revaluation Earnings (CARE) approach for benefits accruing after this date. Employee contribution bandings have also changed and the new regulations have introduced 9 bandings with rates varying between 5.5 – 12.5% according to the employee’s salary.
53. The benefits of the scheme for all members include:
- A tiered ill health retirement package if employees have to leave work at any age due to permanent ill health. This could give employees benefits, paid straight away, and which could be increased if they are unlikely to be capable of gainful employment within 3 years of leaving.
- Early payment of benefits if employees are made redundant or retired on business efficiency grounds at age 55 or over.
- The right to voluntarily retire from age 60, even though the Scheme’s normal pension age is 65. Employees can retire from as early as age 55, provided the employer agrees.
- Flexible retirement from age 55 if employees reduce their hours, or move to a less senior position. Provided the employer agrees, employees can draw all of their benefits – helping them ease into their retirement.
54. Further information about the pension scheme can be found on the pensions website
Payment for acting up or additional duties
55. This policy applies only to GLPC graded employes who, on a temporary basis:
- act up – carrying out the full responsibilities and duties of a higher graded post either for some or all of their working hours; or
- carry out some, but not all, duties or responsibilities of a higher graded post for some or all of their working hours; or
- take on additional duties within their role.
56. The policy allows for employees to receive the salary difference between the lower and higher graded job, calculated on a percentage basis if the additional duties are taken on for only part of the working week.
Unsocial hours allowances
57. The council provides an additional allowance, expressed as a percentage of the basic rate, for regularly working late evenings/early mornings/nights/Sundays. These payments are graduated according to the degree of unsocial hours working and range from 10% to 33% in addition to normal hourly rate.
58. Unsocial hours allowances are only payable for GLPC graded jobs, and are not available for senior managers.
59. The council has an overtime policy where all employees are entitled to receive additional payment for hours worked in excess of 37 hours. GLPC graded employees are able to claim overtime hours at their normal hourly rate x1.5 for hours worked on a Monday to Saturday, and x 2 for working a Sunday. Hay graded staff are able to claim overtime hours but only in exceptional circumstances and payment is based on the highest spinal point (point 49) of the GLPC pay scale.
Standby and callout allowances
60. The council has a standby and callout policy where all employees receive an allowance should they be on standby out of normal office hours. If employees are called out whilst on standby additional hours or overtime will be paid in accordance with the overtime policy.
Local election duties – Acting Returning Officer
61. The role of Acting Returning Officer is currently being carried out by a nominated corporate director. Fees are paid in line with the guidance stipulated from the Elections and Democracy Division for the relevant elections.
62. The council’s policy is to apply the nationally negotiated NJC pay award to the pay scales for jobs evaluated using the GLPC job evaluation scheme.
63. The council also relies on national negotiation for some key provisions of employment such as the sickness and maternity schemes.
64. The council negotiates locally on some other conditions of employment, such as pay and grading, travel expenses, overtime payments and unsocial hours allowances.
65. For these local conditions of employment, the council consults and negotiates with the relevant trade unions in order to reach agreement. These conditions and allowances are then referred to Staffing Policy Committee for agreement.
66. The role of Staffing Policy Committee is to determine, monitor and review staffing policies and practices to secure the best use and development of the council’s staff. This includes the power to deal with all matters relating to staff terms and conditions.
67. The full remit of the council’s Staffing Policy Committee is contained within the constitution.
68. In accordance with the Local Government Transparency Code 2015, the council is committed to publishing the following information relating to senior employees via the council’s website:
- Senior employees salaries which are £50,000 and above
- A list of their responsibilities
- An organisational chart of the staff structure for the top three tiers of the local authority to include each individual’s job title, contact details, grade, salary in a £5,000 bracket, grade maximum and whether each individual is a permanent or temporary employee.
69. This information is updated on a monthly basis.
The publication of and access to information relating to trade union facility time
70. In accordance with the Local Government Transparency Code 2015, the council is committed to publishing the following information relating to trade union facility time as a percentage of the Council’s total wage bill via the council’s website:
- Basic estimate of spending on unions (calculated as the number of full time equivalent days spent on union duties by authority staff who spent the majority of their time on union duties, multiplied by the average salary)
- Basic estimate of spending on unions as a percentage of the total pay bill (calculated as the number of full-time equivalent days spent on union duties by authority staff who spent the majority of their time on union duties, multiplied by the average salary divided by the total paybill).
The relationship between the remuneration of chief officers and employees who are not chief officers.
71. In terms of overall remuneration packages the council’s policy is to set different levels of basic pay to reflect the different sizes of jobs, but not to differentiate on other allowances, benefits and payments it makes.
72. The Hutton Review of Fair Pay in the Public Sector recommends a maximum ratio of the highest remunerated post compared with the lowest remunerated post of 1:20
73. The table below shows the relationship between the basic pay of the highest and lowest paid employees in the council, excluding pensions and allowances. The figures include all staff in the council (non schools) and are based on annual full time equivalent salaries.
|Annual FTE Salary||Ratio|
74. The council would therefore not expect the remuneration of its highest paid employee to exceed 20 times that of the lowest group of employees. The current ratio is well within the Hutton review guidelines at 1:10.9
NJC – National Joint Council
JNC – Joint Negotiating Committee
GLPC – Greater London Provincial Council
SOULBURY staff - Educational improvement professionals. These staff are drawn from different sources, including senior members of the teaching profession. Their role is to advise local authorities and educational institutions on a wide range of professional, organisational, management, curriculum and related children’s services issues, with the overall aim of enhancing the quality of education and related services.
This policy has been Equality Impact Assessed (link to EIA for policy) to identify opportunities to promote equality and mitigate any negative or adverse impacts on particular groups.
This policy has been reviewed by the legal team to ensure compliance with the above legislation and our statutory duties.
There are a number of related policies and procedures that you should be aware of including:
- Hay job evaluation policy and procedure
- GLPC job evaluation policy and procedure
- Market supplements policy and procedure
- Moving home policy and procedure
- Redundancy payments policy
- Overtime policy
- Unsocial hours guidance
- Standby and callout policy
- Starting salaries and incremental progression policy and procedure
- Acting up and additional duties policy and procedure
- The Transparency Code 2015
- Trade Union Recognition Agreement
The policies not published with this report are available from the HR department at Wiltshire Council on request.
|Policy author||HR Policy and Reward Team – AG|
|Policy implemented||28 February 2012|
|Policy last updated||6 January 2016|
Last updated: 7 July 2016