Guidance

Civil Service Pay Remit Guidance 2025 to 2026 (HTML)

Published 22 May 2025

1. Scope and Purpose of the Pay Remit Guidance

This guidance covers pay setting arrangements for civil servants throughout the Civil Service, including: Ministerial Departments, Non-Ministerial Departments, and Agencies.

It also covers public sector workers in Non-Departmental Public Bodies^{[footnote 1]} and Arm바카라 사이트檚 Length Bodies^{[footnote 2]}.

Where reference is made to departments it also includes those organisations outlined that are not ministerial departments but are in scope of the Pay Remit Guidance. Additionally, where reference is made to civil servants it also includes references to other workers employed in organisations covered by this guidance.

Any questions or queries around a department바카라 사이트檚 classification and scope within the remit guidance can be directed to Cabinet Office contacts in Section 5.

This guidance provides a framework within which all departments will set pay for 2025/26, departmental pay strategies, and pay reporting. Additionally, this guidance includes contextual factors, the overall pay strategy, the headline figure and additional flexibility and how to implement this, and how to apply for pay flexibility above these figures.

This guidance does not apply to departments which are already in approved arrangements outside of the Pay Remit Guidance, including those for which multi-year deals extending into the 2025/26 pay year have been agreed. A glossary of terms used in the guidance can be found in Section 6.

2. 2025/2026 Pay Remit Headline Award and Encompassing Factors

2.1 Introduction

This year, departments are able to make average pay awards up to 3.25% and have flexibility to use an extra 0.5% to be targeted at specific departmental workforce issues. This additional flexibility can be prioritised, but is not limited, to the following areas:

• Low pay, in particular the lowest paid, and the pay compression effects arising from recent years바카라 사이트� increases to the National Living Wage rates;;
• Targeting pay to addressing scarce skills; and
• Delivering the infrastructure of a productive and agile state, including rewarding delivery towards the 바카라 사이트바카라 사이트檚 missions and promoting systems leadership across the Civil Service.

Departments are encouraged to factor in their longer term objectives, including wider workforce priorities they are required to address over the next Spending Review period. Departments have flexibility to target their pay awards in a way which best suits their workforce needs.

Departments must ensure pay awards are affordable within agreed spending settlements, and be aware of the need to balance other budgetary pressures, with consideration of the wider economy and the 바카라 사이트바카라 사이트檚 macroeconomic framework.

The percentage increase of 3.25% will refer to overall average pay awards within the department and individuals may receive a higher or lower award, as it is for departments to determine how to target their pay award based on their own workforce and business needs, and the criteria as set out above.

2.2 Increase in Remuneration Costs (IRC)

Departments are reminded that all elements which increase paybill cost must be included in the calculation of a pay award, except employer National Insurance contributions and employer pension contributions.The following must be included:

• Re-valorisation of paybands
• any remaining historic progression increments
• introduction of new allowances
• increases to existing allowances
• cost of increases in the non-consolidated performance pot above its existing proportion of total paybill
• non-consolidated payments (except for payments related to performance from the non-consolidated performance pot)
• buy-out of allowances or non-pay entitlements
• incentive payments relating to the implementation of pay reforms
• cost associated with changes in non-pay benefits/rewards (e.g. increasing annual/sick/maternity/paternity/parental leave entitlements, introducing long service or non pay recognition awards)
• increases arising from pay restructuring (e.g. associated with machinery of government changes or repositioning staff within the pay range)
• salary sacrifice schemes^{[footnote 3]}

2.3 Exceptions to Increase in Remuneration Costs

• National Living Wage - from 1 April 2025, departments must ensure that they apply the legislative increase to the National Living Wage (NLW) and National Minimum Wage (NMW). The cost of raising individuals to the new rates can be met outside department바카라 사이트檚 pay remit.
• Holiday Pay - increases in remuneration made specifically to fulfil the legal obligation to include payments such as regularly worked overtime in statutory holiday calculations should be considered outside the headline pay awards, providing that the increases are made only to the extent that they fulfil the legal requirements.
• Selling Annual Leave Schemes - where increased costs associated with this scheme will be offset against additional productivity. Departments should consider statutory holiday entitlement when implementing the scheme.
• Costs associated with employee benefits from the cross government benefits framework - costs associated with employee benefits from the cross 바카라 사이트 benefits framework or a departmental benefits framework (unless it is a new salary sacrifice benefit).
• Carers leave - from 1 April 2024, the cost of introducing the legislative requirement of one week unpaid leave for care provision.
• Neonatal leave - from 1 April 2025, the cost of introducing the legislative requirement of 12 weeks바카라 사이트� statutory neonatal leave and pay. Departments also have the flexibility to apply occupational pay for entitled employees for this period.
• Recyclable savings from salary sacrifice schemes - Employer National Insurance and pension contributions saved as a result of salary sacrifice schemes, where such schemes are permitted by HM Treasury, are recyclable savings and can be offset against the IRC of a 2025/26 pay award.

If a department makes any changes to elements of their paybill this forms part of their total paybill. If that presents an increase in remuneration costs (IRC) for the remit year above the controls set out in this guidance, i.e. 3.25% plus an additional 0.5% to be targeted at specific workforce issues, then further approval is required from Cabinet Office and HM Treasury Ministers.

Departments should contact the Cabinet Office for advice if they are unsure whether any changes they are considering would present an IRC.

Cabinet Office and HM Treasury will consider requests from departments for pay flexibility proposals where it meets the requirements set out in section 3. Departments are encouraged to discuss any potential business case with the Cabinet Office in the first instance at hrpolicy.gpg@cabinetoffice.gov.uk. The deadline to submit a case for the 2025/26 remit year is no later than 31 October 2025.

Pay remits can only be reopened in exceptional cases once the relevant Secretary of State has approved them. For example, departments may be able to make an award within remit whilst awaiting the outcome of a pay flexibility case. Departments must seek approval from the Cabinet Office and HM Treasury prior to implementing an interim award.

2.4 Performance-Related Pay Awards

Non-consolidated performance pay will continue to be managed, as in previous years, within each department바카라 사이트檚 non-consolidated performance pay 바카라 사이트榩ot바카라 사이트� calculated as a fixed percentage of paybill. Departments have the flexibility to apply non-consolidated performance awards either in-year or end-year, or both. Departments are encouraged to target their funds to ensure there are enough staff to deliver vital public services. With the agreement of HM Treasury and the Cabinet Office, departments have the option of transferring money between their consolidated and non-consolidated pots as set out below in Section 3.2.

Requests to increase the size of the non-consolidated performance pay 바카라 사이트榩ot, permanently or temporarily, will only be considered in exceptional circumstances. Consideration of this change will be dependent on factors including the current size of a department바카라 사이트檚 non-consolidated performance pay 바카라 사이트榩ot바카라 사이트� and the proposed increase, as well as the justification for change. If a department바카라 사이트檚 non-consolidated 바카라 사이트榩ot바카라 사이트� has been previously reduced to fund higher consolidated pay, further requests will not be considered.

2.5 Priorities for targeting additional flexibility

In addition to the headline award of up to 3.25%, departments have flexibility to make a further award of up to 0.5% to address specific workforce issues. This additional flexibility can be prioritised, but is not limited, to the following areas:

2.5.1 Lowest paid and pay compression

To address the lowest paid and any potential impact of pay compression resulting from increases to the National Living Wage. Departments are encouraged to exercise additional flexibility in their pay award decisions. Departments should aim to ensure that their lowest paid employees are offered fair and competitive compensation, while maintaining appropriate pay differentials between grades.

2.5.2 Scarce Skills

To improve the Civil Service바카라 사이트檚 ability to attract and retain talent in areas where specialist skills are in high demand, departments are encouraged to use the flexibility to specifically address recruitment and retention issues for roles which are critical to delivering government priorities.

2.5.3 Mission delivery and system leadership

Departments are encouraged to establish a one-off non-consolidated, targeted reward mechanism for individuals who demonstrate exemplary performance in delivering on either:

• The 바카라 사이트바카라 사이트檚 mission objectives and enhancing service, demonstrating exceptional achievements that directly contribute to the successful fulfilment of one or more of the government바카라 사이트檚 mission objectives. Evidence may include measurable outcomes, innovative approaches to problem-solving, or leadership in driving forward key initiatives; or
• In recognition of the critical role that system leadership plays in effective governance and public service delivery, departments are encouraged to establish a System Leadership Award. This award aims to incentivise and reward civil servants who demonstrate exceptional capability in promoting mission-led government, fostering multidisciplinary teamwork, and enhancing problem-solving across the Civil Service. The System Leadership Award intends to recognise individuals or teams who have successfully driven initiatives that:
  • Promote a holistic approach to government service delivery.
  • Encourage collaboration across different departments and disciplines to address complex challenges.
  • Implement innovative solutions that enhance service efficacy and responsiveness to public needs.

Departments may use this flexibility either from the additional 0.5% flexibility or from the existing non-consolidated performance related pay pot.

Further guidance and criteria for this will be distributed to departments in due course.

3. Pay Flexibility

The 바카라 사이트 wants to ensure that it is attracting the best and brightest to work for the Civil Service, and rewarding hard working staff fairly. It is important that pay awards ensure sustainability of public finances, deliver value for money for the taxpayer and consider economic conditions. Departments should also consider how their long-term pay strategy delivers on workforce priorities and efficiencies.

This year, departments are able to make average pay awards of up to 3.25% and have the additional flexibility of 0.5% to address their specific workforce issues. Where a department is looking to go beyond this, it may submit a request for pay flexibility where it can demonstrate higher pay awards in return for efficiency and productivity benefits to the department.

Departments considering a request for pay flexibility should contact the Pay and Reward team in 바카라 사이트 People Group, hrpolicy.gpg@cabinetoffice.gov.uk.

Where departments request pay flexibility cases should be cost neutral in the medium-term, with details to be set out in a business case. This means that any additional costs should be offset by delivering savings, which may include tangible productivity and efficiency gains. Proposals will be considered where savings and efficiencies to the paybill which cover the IRC can be met within the business case lifecycle or in the medium-term.

3.1 Pay Flexibility Process

As outlined above, cases for pay flexibility will now be considered where:

• Accounting Officers, HR Directors, and Finance Directors in the department are engaged on the proposals;
• Relevant Secretaries of State or Ministers agree that the department meets the Pay Flexibility criteria in Section 3.3;
• The business case is submitted to Cabinet Office and HM Treasury no later than the deadline of 31 October聽 2025;
• Departments do not make a pay award for their workforce, unless approval to make an interim award has been agreed. Approval for this should be sought from Cabinet Office and HM Treasury officials. Accounting Officers should ensure that any interim award made does not affect the affordability of the pay case or exceed the headline award permitted by this guidance and would not result in overpayments to individuals in the event that Cabinet Office and HM Treasury ministers reject the pay flexibility proposals; and
• Any pay arrangements proposed do not involve automatic time-served progression pay, or create an entitlement for employees to receive automatic incremental pay increases.

3.2 Types of Business Case

3.2.1 Recruitment and retention

Departments may seek targeted pay flexibility to address specific problems associated with recruitment and retention in specific grades and/or professions within their department. These cases must include associated efficiencies and reforms to deliver sustainable savings going forward. Organisations must include robust evidence in support of pay proposals and consider the wider current economic and labour market context. Proposals must also be strictly targeted and involve prioritisation.

The degree of labour turnover and recruitment deemed to be problematic will vary by department and by grade and profession of staff. Departments will need to demonstrate (with robust relevant data) that recruitment and retention problems are exceptional and severely risk service delivery, and the degree to which any turnover problems are associated with pay rather than other wider organisational factors (include internal criteria on percentage figure for employee turnover and unfilled vacancies/contingent labour reliance)

Where departments are citing staff motivation as a contributor to turnover, they must demonstrate whether these problems are associated with pay, for example, through evidence from surveys of staff and exit interviews. Departments should expect to be challenged on whether alternative measures are more appropriate to address the issues they have identified. Departments can also consider a business case to adopt the Digital & Data pay framework to address specific recruitment and retention challenges (see below).

3.2.2 Transfer of funds from the non-consolidated pot to consolidated pay:

Departments and NDPBs are permitted to reduce their non-consolidated performance related pay (PRP) pot permanently as a percentage of consolidated paybill to offset agreed increases in paybill costs applied to meet targeted recruitment or retention pressures, and to address pay anomalies.

The permitted reduction in the PRP pot is capped at an amount equivalent to 50% of the pot, or 0.5% of the baseline paybill if smaller, in order to ensure that departments maintain sufficient resources to continue to fund non-consolidated performance arrangements. PRP pots may not be reduced to provide additional funding for the consolidated paybill generally (for example to fund an across-the-board increase to staff), but must be targeted to address recruitment and retention pressures or pay anomalies.

Funding remaining within the ring-fenced PRP pot following an agreed reduction is expected to be applied to performance-related payments. To avoid this flexibility resulting in subsequent paybill increase, the reduction in the PRP pot will be permanent once the pot as a percentage of paybill has been reduced. Departments must be satisfied that their proposed reduction will not jeopardise the operation, development or effectiveness of their performance-related pay arrangements.

Requests to increase the size of the non-consolidated performance pay 바카라 사이트榩ot바카라 사이트�, permanently or temporarily, will be considered in exceptional circumstances. If an organisation바카라 사이트檚 non-consolidated PRP pot has been previously reduced to fund higher consolidated pay, further cases will not be considered.

3.2.3 Transformational

In previous years, departments have been able to submit proposals for transformational pay reform. Departments may seek to take forward transformational pay reform to address structural issues or support delivery of workforce reform. This may include pay restructuring which is necessary as a result of Machinery of 바카라 사이트 changes.聽

In 2025/26, such proposals will only be considered in cases where there is evidence that such reforms are necessary to address acute or longstanding recruitment and retention issues and to ensure the continued delivery of vital public services.

In these cases, proposals are expected to be offset by delivering sustainable savings, which may include tangible productivity and efficiency gains. Such proposals will only be considered where there is a clear case that reforms will generate transformation in departmental and public service delivery, and are expected to be offset by delivering sustainable savings, which may include tangible productivity and efficiency gains. This may include, for example, reduction in contingent labour, savings from reduced turnover, recyclables, changes to terms and conditions of employment, or other productivity and efficiency savings.

Departments should also consider delivery of Spending Review priorities when formulating a business case.

Departments must discuss options with the Cabinet Office before formally submitting a business case. The assessment of a business case will take into account the individual circumstances of the department.

3.2.4 Capability-based pay frameworks

For 2025/26, further work is being developed as part of the wider Civil Service Reward Strategy to explore models for capability-based pay in the Civil Service. Therefore, we will not consider business cases submitted by departments for capability-based pay in 2025/26. However, we encourage departments to discuss any proposals with the Cabinet Office and HM Treasury to inform the longer-term reward strategy.

3.2.5 The Pay framework for Digital & Data, and for Cyber Staff

Departments will continue to submit a business case to the Cabinet Office for approval to adopt the Digital and Data Pay Framework. This pay framework enables departments to pay capability-based allowances to recruit and retain staff in hard to fill digital and data. Roles are taken from the , which is also used to support annual capability assessments.聽

Business cases to adopt the pay framework are funded outside the headline pay remit, usually by recycling savings from reducing contingent labour use (although cases with clear evidence of future cost-avoidance might also be approved). Departments should discuss options, and agree their business case with the pay team in 바카라 사이트 Digital Services (GDS) before formally submitting a business case.聽 The cost of paying allowances under the framework does not count towards the calculation of increase in remuneration cost (IRC).聽

Approval of business cases to adopt the Digital and Data Pay Framework has been delegated to 바카라 사이트 Chief People Officer, where they align with the agreed Digital and Data Pay Framework.

Departments looking to adopt the Digital and Data Pay Framework should first discuss their business case with the pay team in GDS, at digital.pay@dsit.gov.uk

3.3 Business Case Assessment

As set out above, requests for pay flexibility will be considered where departments can demonstrate the following headline principles throughout their proposals:

• Transformational and targeted
• Delivers efficiencies and productivity
• Evidence-based
• Measurable
• Coherence
• Equality

These principles should be met and are applicable specifically to the following business cases:

• Transformational workforce reform
  • Transformational and targeted: proposals should deliver long-term focused transformational changes to departmental delivery and, therefore, significant improvements in productivity and/or resolve specific problems encountered by departments. Proposals must consider how a pay strategy may support delivery of Spending Review workforce priorities, deliver productivity and efficiency gains, savings including through changes to terms and conditions of employment, and other recyclables.
  • Delivers efficiencies and productivity: Proposals are expected to be cost neutral in the medium-term and, as set out in the business case, should not place a cost pressure on the department바카라 사이트檚 budgets, and should deliver on Spending Review priorities. This means that any additional costs should be offset by delivering savings, which may include tangible productivity and efficiency gains. Proposals should be accompanied by a holistic workforce strategy including detail on how proposed reforms will enable workforce targets to be met, and are also expected to provide sustainable and measurable workforce productivity gains.
  • Evidence-based: proposals should demonstrate robust evidence in the form of data to back up the proposals. For example, showing low levels of pay that are below relevant comparators, and how this has translated into significant recruitment and retention problems (including relevant statistics). Proposals should demonstrate robust evidence that the pay proposals will have a front line impact on business delivery, outcomes, and productivity. Proposals should also provide evidence that demonstrates expected efficiencies and savings resulting from the duration of the pay deal.
  • Measurable: timelines and milestones must be provided to enable the tracking of the pay reform to ensure savings and impacts are being achieved.
  • Coherence: proposals must take into account wider Civil Service context and departments may decide it is appropriate for them to look towards more consistent approaches and policies. In particular, business cases are encouraged to look at where historic divergence between departments has made reward systems more complex, less agile, less fair to employees and less efficient overall to the taxpayer.
  • Equality: Compliance with equality legislation, and ensuring an equality impact assessment has been undertaken when developing proposals.
• Addressing recruitment and retention issues
  • Transformational and targeted: Proposals should address specific problems associated with recruitment and retention in specific grades and professions within their department. Proposals should also deliver sustainable savings going forward and clearly demonstrate associated efficiencies and reforms.
  • Delivers efficiencies and productivity: proposals are expected to deliver savings and efficiencies to the paybill which cover the Increase in Remuneration Cost (IRC), and do not place a cost pressure on the department바카라 사이트檚 budgets. Proposals are also expected to provide sustainable workforce productivity gains.
  • Evidence-based: proposals should demonstrate low levels of pay that are below relevant comparators and how this has translated into significant recruitment and retention problems (including relevant statistics) that severely risk service delivery, and the degree to which any turnover problems are associated with pay rather than other wider organisational factors. Proposals must also demonstrate clear evidence that the pay discrepancy will have a front line impact on business delivery, outcomes, and productivity.
  • Measurable: timelines and milestones must be provided to enable the tracking of the pay reform to ensure savings and impacts are being achieved.
  • Coherence: proposals may take into account wider Civil Service context and departments may decide it is appropriate for them to look towards more consistent approaches and policies. In particular, business cases are encouraged to look at where historic divergence between departments has made聽 reward systems more complex, less agile, less fair to employees and less efficient聽 overall to the taxpayer.
  • Equality: Compliance with equality legislation, and ensuring an equality impact assessment has been undertaken when developing proposals.
• Transfer of funds from the non-consolidated pay pot to consolidated pay
  • Transformational and targeted: proposals should address specific problems associated with recruitment and retention in specific grades and professions within their department. Proposals should demonstrate that funds are being targeted to ensure there are enough staff to deliver vital public services.
  • Delivers efficiencies and productivity: proposals are expected to deliver productivity and efficiency savings which cover the Increase in Remuneration Cost. Proposals are also expected to provide sustainable workforce productivity gains. Proposals should demonstrate that the proposed reduction of the non-consolidated pay pot will not jeopardise the operation, development or effectiveness of their performance-related pay arrangements.
  • Evidence-based: proposals should demonstrate low levels of pay that are below relevant comparators and how this has translated into significant recruitment and retention problems (including relevant statistics) and robust evidence that the pay discrepancy will have a front line impact on business delivery, outcomes, and productivity. Proposals should provide evidence that demonstrates expected efficiencies and savings resulting from the duration of the pay discrepancy.
  • Measurable: timelines and milestones must be provided to enable the tracking of the pay reform to ensure savings and impacts are being achieved.
  • Coherence: proposals may take into account wider Civil Service context and departments may decide it is appropriate for them to look towards more consistent approaches and policies.聽 In particular, business cases are encouraged to look at where historic divergence between departments has made reward systems more complex, less agile, less fair to employees and less efficient overall to the taxpayer.
  • Equality: Compliance with equality legislation, and ensuring an equality impact assessment has been undertaken when developing proposals

4. Pay Remit Process and Approval

4.1 Responsibilities

4.1.1 Cabinet Office and HM Treasury

Cabinet Office has responsibility for the overall management of the Civil Service. It is responsible for the publication of the Civil Service Pay Remit Guidance and ensuring that it is sufficiently affordable and flexible for all relevant departments to apply within their budgets. It works with departments and agencies on their workforce and reward strategies to encourage them in implementing tailored reward strategies that are consistent with their workforce and business needs, ensuring that they are able to attract and retain talent to deliver the 바카라 사이트바카라 사이트檚 priorities and world class public services.

HM Treasury has overall responsibility for the 바카라 사이트바카라 사이트檚 public sector pay and pensions policy, and maintaining control over public spending including with regards to departmental spending. Departments who have previously been granted clearance can continue the paybill control system going forward. HM Treasury will continue to keep the use of paybill control under review and will not consider new proposals this remit year.

4.1.2 Departments

Departments have responsibility for implementing Civil Service pay policy for their workforce in a way that is consistent with the Civil Service pay guidance but also reflects the needs of their business and their labour market position. All pay remits must be approved by a Secretary of State or responsible minister, and each department, through its accounting officer, is responsible for the propriety of the pay award to staff, including their obligations as set out in Section 4.3.

4.1.3 Trade Unions

Departments are responsible for negotiating the annual pay remit with their recognised Trade Unions in line with the delegated pay framework. As a matter of course, departments are encouraged to work constructively with recognised Trade Unions on the development of their overall pay, reward, and workforce strategies, including annual pay remits and the development of pay flexibility business cases. Once the annual pay remit has been agreed by the relevant Secretary of State, departments can enter formal negotiations with the Trade Unions. If departments require guidance or advice about what constitutes 바카라 사이트榝ormal negotiation바카라 사이트�, they should contact the Cabinet Office.

4.2 The Remit Process

4.2.1 Approval

Departments, NDPBs and Agencies are required to submit a short business case to their relevant Secretary of State or appropriate Minister for approval. The only exceptions to this are 바카라 사이트 Communications Headquarters, the Secret Intelligence Service and the Security Service where there is no Secretary of State with authority to determine pay. Their annual pay remits will continue to require HM Treasury ministerial approval.

No further approval from Cabinet Office or HM Treasury is necessary unless specific arrangements or requirements are already in place, or a department is looking to implement a pay award outside of the remit set by this guidance (such as a pay flexibility business case) at which point they should contact Cabinet Office and refer to the guidance in Section 3.

4.2.2 Pay flexibility business case to the Secretary of State

Where departments have decided to submit proposals for pay flexibility, departments should ensure that clearance is sought from the relevant HR and Finance Directors, and Permanent Secretary prior to submission to the Secretary of State.

Secretaries of State should consider whether proposed pay flexibility is affordable within departmental budgets and through savings generated as a result of further flexibility in line with the guidance at Section 3.

The requirements in Section 3.3 of this guidance must be met.

The business case should cover, where relevant:

• information on how the business case is consistent with the department바카라 사이트檚 overall workforce, pay and reward strategy, and Spending Review priorities.
• information on the makeup of the department바카라 사이트檚 workforce, and the internal and external labour market in which they operate
• the relevant local labour market in which staff operate
• the recruitment and retention situation within the workforce
• Equality Act requirements to avoid discrimination, including the need for departments to meet their obligations under the Public Sector Equality Duty, and to record their findings on this
• the total reward of staff, including pensions and conditions of service
• any structural changes or reforms to pay arrangements
• information on how the department is meeting key long-term priorities

Departments should also work constructively with Trade Unions on the development of their overall pay and reward strategies, and may find it helpful to discuss proposals with Trade Unions as they are developed. Following approval from the relevant Secretary of State, departments should enter formal negotiations with their departmental Trade Unions.

However, if during subsequent negotiations with Trade Unions there are any significant deviations from those proposals, then these must be reported to the Secretary of State and, as appropriate, Cabinet Office or HM Treasury before any final agreement is reached. Any department that is uncertain as to whether what they propose to agree constitutes a significant difference from that specified under the remit should contact the Cabinet Office for advice.

Pay settlement changes are expected to apply from the settlement date upon which the department바카라 사이트檚 pay remit year commences, and should not be deferred.

4.3 Legal Considerations for Departments

Departments are reminded of their obligation to comply with their Public Sector Equality Duty when considering pay awards for their staff and the requirements of the HR Functional Standard (including adherence to all legal and regulatory requirements).

Departments are also expected to apply this guidance alongside the HM Treasury guidance on public sector pay and terms.

Departments are encouraged to take legal advice on the drafting of any pay commitments to ensure that these are affordable and consistent with this guidance.

Ministerial approval of pay remits is given on the basis that a department does not enter into any legally binding agreements in Trade Union negotiations that effectively commit it to automatic costs in the future.

4.4 Senior Staff

Senior Civil Servants (SCS) and NDPB equivalents are not included within the scope of this Civil Service pay guidance. The pay of the SCS is covered by the Senior Salaries Review Body바카라 사이트檚 (SSRB) remit and is set centrally by the Cabinet Office. Pay for senior staff in NDPBs is not covered by the SSRB바카라 사이트檚 remit. Nevertheless, NDPBs have an important leadership role in following public sector pay policy and, therefore, any annual pay increase or decision to award performance-related pay to such staff must be considered alongside and according to the same principles that apply to the SCS. Sponsor departments are responsible for enforcing this. The latest SCS Pay Practitioners Guide can be found on Gov.uk.

5. Contacts

Any queries in relation to this guidance, or the remit process in general, should be emailed to the Cabinet Office in the first instance:

Email: hrpolicy.gpg@cabinetoffice.gov.uk

Civil Service Reward and Employment Team
바카라 사이트 People Group
Cabinet Office, Zone 10/11 4th Floor
1 Horse Guards Road
London
SW1A 2HQ

6. Glossary of Terms

6.1 Direct wages and salaries

Direct wages and salaries include all the elements that go to employees on a current basis (as opposed to pension payments, for example, which are deferred).

6.2 Paybill

Paybill, for the purpose of calculating the pay remit, includes the sum of direct wages, salaries, and overtime rates, while excluding employer pension contributions and National Insurance contributions. Includes all staff-related costs but excludes the cost of staff not on the formal Civil Service payroll - see current section 6.10.

6.3 Baseline remuneration cost

The baseline remuneration cost is the cost to the department, for the remit year with the expected staff complement, before applying the pay award. Baseline remuneration cost does not include employer National Insurance and pension contributions.

6.3 Increase in remuneration cost (IRC)

The IRC calculates the pay remit proposals against the baseline remuneration cost.

As stated in Section 2, the IRC includes all increases arising from the remit proposals, including costs from any current system of progression-based pay or capability-based pay. Increases to overtime rates are also included. The only factors excluded from the IRC are employer National Insurance contributions and pension contributions, and is the net of any offsetting reductions in these costs.

Example: if the total costs of the remit proposals were 拢200,000 and the baseline costs were 拢2,000,000 the projected costs would be 拢2,200,000 or a 1% IRC.

6.4 Non-consolidated performance payments (as referenced in section 2.4)

Non-consolidated performance payments are awarded to staff based on performance either at an individual, team, or organisational level. They are re-earnable and do not have associated future costs. Types of payment include:

• Performance related payments based on individual contributions to the department and assessed by the department바카라 사이트檚 performance management system.
• Special bonus schemes of individual payments for special projects or outstanding pieces of work that are not covered by the normal performance management system.

Non-consolidated performance payments met from the performance pot should be excluded from the IRC calculation and are non-pensionable but still subject to National Insurance contributions However, non-consolidated payments not related to performance, as well as increases in the non-consolidated performance pot, must be included in the IRC calculation.

The non-consolidated performance pay pot is a fixed percentage of a department바카라 사이트檚 baseline paybill and included within their paybill but not as part of the IRC, unless it is being increased.

For example: In 2025/26, an organisation has a paybill of 拢20 million and has a non-consolidated performance pot of 1%. The cash value of the non-consolidated pot would be 拢200,000.

6.5 Other non-consolidated payments (as referenced in Section 2.2)

Non-consolidated payments other than those related to performance must be included in the IRC calculation.

6.6 Progression Pay

Progression pay systems are those under which pay to individuals in a specific grade or post increases periodically. Progression pay cost is the cost of moving someone through the pay range; for spine point or step-based systems, it relates to the costs of incremental steps. In some cases this is subject to demonstration of increased capability (to a particular standard), a satisfactory performance assessment, and/or may be a legal entitlement. Progression may also be as a result of targeting a pay award. In milestone and reference-point based systems, progression means the cost of moving staff within the pay range.

6.7 Revalorisation

Revalorisation relates to the uprating of pay ranges, spine points, or step-based systems and is the value by which set points are increased. The cost of any revalorisation must be included in the IRC calculation.

6.8 Non-pay rewards and benefits (as referenced in Section 2.2)

These include increases in annual leave entitlements, reduction in working hours, etc. The cost of such changes should be calculated and included in the IRC calculation.

6.9 Remit year and settlement date

The remit year is the period for which the approved pay remit applies to. The settlement date is when the award is applied from the commencement of the remit year and the IRC figure does not reduce if the award is implemented later.

6.10 Non-paybill staff costs

Consultants, interim, and agency staff costs are not included in the paybill.

1. Throughout the guidance the term 바카라 사이트渄epartment(s)바카라 사이트� includes all organisations (ministerial and non-ministerial departments, agencies and NDPBs) that come within its scope, unless the context implies otherwise, and departments should seek clarity as necessary.聽鈫�

2. Organisations should contact their parent or sponsor department to seek guidance from the Cabinet Office (contact details found in Section 5) if unsure whether they are in scope of the guidance.聽鈫�

3. A letter from the Financial Secretary to Secretaries of State on 3 November 2009 clarified the rules on salary sacrifice schemes in the public sector. Departments should refer to this if needed.聽鈫�