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His Royal Highness The Duke of Edinburgh, 10 June 1921 to 9 April 2021

Read about the arrangements following The Duke of Edinburgh’s death

Background

Since 2012, unitary authorities and fire and rescue authorities in Wales have been required to publish an annual pay policy statement. 

Although this guidance is being issued to unitary authorities and fire and rescue authorities under section 40 of the Localism Act 2011, such authorities should be mindful of recent reviews to senior remuneration arrangements within the devolved public sector. The National Assembly for Wales Public Accounts Committee (PAC) undertook an inquiry into Senior Management Pay across the public sector in Wales in November 2013 and reported in November 2014. The PAC inquiry identified a number of cross-cutting issues around transparency and accountability processes and its recommendations were intended to address inconsistencies and discrepancies in what was then being published and disclosed by public bodies; including bodies within the local government sector.

The Welsh Government is committed to the principle of social partnership and of national and local collective bargaining. The Welsh Government is also committed to transparency of senior pay. In December 2015, the Welsh Government published a framework document that set out a common set of high level principles and minimum standards for reporting arrangements of senior remuneration within the Welsh public sector (including local authorities and fire and rescue authorities). The framework document is not intended to cut across existing or developing structures for pay negotiations within specific public service sectors. 

The Welsh Government expects devolved public bodies in Wales to uphold these principles which should be read in conjunction with this guidance. 

The Public Services Staff Commission has considered how public bodies have adopted the Welsh Government framework document during 2016. The Staff Commission consulted a range of public bodies on this issue and presented its findings to the Workforce Partnership Council in November 2016. 

In December 2016, the Staff Commission published “Advice and guidance on the Welsh Government Framework on ‘Transparency of Senior Remuneration in the Devolved Welsh Public Sector”. This guidance includes an example pay policy statement and suggests good practice to include in annual reports. It is intended to support public bodies in complying with the requirements of the framework document. Account has been taken of the Staff Commission’s guidance in updating this statutory guidance. This guidance replaces any previous guidance issued under section 40 of the Localism Act 2011.

In November 2020 UK Parliament and HM Treasury brought into force the Restriction of Public Sector Exit Payments Regulations 2020 (SI 2020/1122) This placed a cap of £95,000 on all exit payments and meant that all local authorities, health bodies, Voluntary-Aided and Foundation schools, and other public bodies are required to ensure that no exit payment is made to any employee or office holder that exceeds the £95,000 limit without Welsh Ministers’ approval. This guidance amends the previous recommendation for authorities to offer full council or a meeting of FRA members the opportunity to vote on any severance packages exceeding £100,000 to £95,000 before seeking Ministerial approval.  

Introduction

This guidance applies in relation to Wales only.  

Sections 38 to 43 of the Localism Act 2011 (‘the Act’) apply to ‘relevant authorities’. Relevant authorities in Wales are:

  • a county council
  • a county borough council
  • a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies. 

Relevant authorities are required by section 38(1) to prepare pay policy statements. These statements must articulate an authority’s own policies on a range of matters relating to the pay of its workforce, particularly its senior staff (or ‘chief officers’) and its lowest paid employees. Pay policy statements must be prepared for each financial year. They must be approved by full council, or a meeting of members in the case of a fire and rescue authority (FRA), and published. 

Under section 38(4) of the Act, a relevant authority’s pay policy statement must include the authority’s policies relating to:

  • the level and elements of remuneration for each chief officer
  • remuneration of chief officers on recruitment
  • increases and additions to remuneration for each chief officer
  • the use of performance-related pay for chief officers
  • the use of bonuses for chief officers
  • the approach to the payment of chief officers on their ceasing to hold office under or to be employed by the authority; and
  • publication of and access to information relating to remuneration of chief officers.

To demonstrate good practice, authorities should also consider including the following information:

  • information demonstrating evidence of affordability and value for money
  • the number of senior posts within the body with a remuneration package of more than £100,000 in bands of £5,000
  • the body’s approach to talent management
  • the body’s approach to performance related pay
  • the body’s approach to providing support for lower paid staff
  • the highest and lowest pay points set by the body, and
  • the severance policies which the body operates and how and in what circumstances these can be varied.

Under section 39 of the Act, a relevant authority’s pay policy statement must be approved by a resolution of the authority before it comes into force and each subsequent statement must be prepared and approved before the end of the 31 March immediately preceding the financial year to which it relates. A relevant authority may by resolution amend its pay policy statement (including after the beginning of the financial year to which it relates). As soon as is reasonably practicable after approving or amending a pay policy statement, the authority must publish the statement or the amended statement in such manner as it thinks fit (which must include publication on the authority’s website).

This guidance sets out the key policy principles which underpin the pay accountability provisions in the Act. It is issued by the Welsh Government in accordance with section 40(2) of the Act. Relevant authorities in Wales must have regard to this guidance when performing their functions in preparing and approving pay policy statements. The guidance also contains good practice examples which relevant authorities should consider in preparing and approving pay policy statements.  

Scope

The provisions in the Act do not apply to the staff of local authority schools and therefore teaching staff need not statutorily be brought within the scope of a pay policy statement. There is however an existing requirement in the School Teachers’ Pay and Conditions Document for all relevant bodies, both governing bodies and local authorities, who employ teachers to have a pay policy in place. These policies should be readily accessible to teachers. Local authorities should encourage governing bodies to publish their existing pay policies on the school’s website.

Nothing in the pay accountability provisions in the Act or in this guidance is intended to supersede existing responsibilities and duties placed on authorities in their role as employers under relevant employment legislation, and authorities must, of course, bear in mind these responsibilities and duties when formulating a pay policy statement. Discussion of an authority's policies in relation to pay would not engage the Data Protection Act 1998 as it does not concern data relating to a particular individual. 

Each local authority is an individual employer in its own right and has the autonomy to make decisions on pay which are appropriate to local circumstances and which deliver value for money for local taxpayers. The provisions in the Act do not seek to change this or to determine what decisions on pay should be taken or what policies individual employing authorities should have in place. Rather, they require authorities to be more open about their own local policies and how local decisions are made.

Policy principles

In June 2010, the UK Government asked Will Hutton to undertake an independent review of fair pay in the public sector. Hutton’s final report was published in March 2011 and made several recommendations for promoting pay fairness in the public sector by tackling disparities between the lowest and the highest paid in public sector organisations. 

The provisions in the Act bring together the strands of clearer accountability, transparency and fairness in the setting of local pay. They require councillors (in the case of local authorities) or members (in the case of FRAs) to take a greater role in determining pay, ensuring these decisions are taken by those who are directly accountable to local people. The Act’s provisions ensure communities have access to the information they need to determine whether remuneration, particularly senior remuneration, is appropriate and commensurate with responsibility. In addition, they ensure policies on the pay and reward of the most senior staff are set clearly within the context of the pay of the wider workforce.

Accountability

The Cabinet Secretary for Finance and Local Government considers decisions on pay policies should be taken by councillors and members who are directly accountable to local communities. Authorities should ensure all democratically accountable members have a significant input into how decisions on pay are made, particularly decisions on senior pay, and they are open about the policies that determine those decisions. 

That is why the Act requires pay policy statements, and any amendments to them, to be considered by a meeting of full council or a meeting of members of the relevant FRA, and cannot be delegated to any subcommittee. In scheduling such meetings, authorities should act in accordance with the requirements of Part 5A of the Local Government Act 1972. 

As pay policy statements contain the general principles underpinning the decisions on pay and not personal data, the Cabinet Secretary does not consider any of the grounds for exclusion of the public would be met for discussions of the statements. Such meetings should therefore be open to the public and should not exclude observers. All decisions on pay and reward for chief officers must comply with the current pay policy statement. 

The sample pay policy statement at Appendix A includes information about the role of the chief executive and a short pen picture of the post holder, including details of their previous experience. This is considered good practice and contributes to pay transparency. Including statements of introduction from the leader of the Chair or Leader of the local authority within the pay policy statement, outlining the accountability for decision making, is also considered to be good practice.

The Local Government (Democracy) (Wales) Act 2013 inserts a new section 143A into the Local Government (Wales) Measure 2011. The provision gives the Independent Remuneration Panel for Wales (IRP) powers to make recommendations in relation to any policy in an authority’s pay policy statement which relates to the salary of the head of paid service, or any proposed change of salary of the head of paid service in a principal council or a fire and rescue authority.

Any authority which proposes to change the salary of the head of paid service (except one which is commensurate to a change affecting the authority’s other staff more generally) must consult the IRP about the proposed change. The authority is then required to have regard to the IRP’s recommendations on the proposal.

Transparency

It is essential that an authority’s approach to pay, as set out in a pay policy statement, is accessible for citizens and enables local taxpayers to take an informed view of whether local decisions on all aspects of remuneration are fair and make best use of public funds.

Authorities are required to prepare their pay policy statements on an annual basis and should set out in the statement the approach and timing of the next review. Authorities should also include when their draft pay policy was considered at a meeting of full council.

Approved pay policy statements must be published on the authority’s website and in any other manner the authority thinks appropriate, as soon as is reasonably practicable after they are approved or amended. Authorities should ensure statements can be easily found by a simple search on their website.  The statement itself should be published as a standalone document in it its final form, perhaps within the website’s transparency section or with other pay and workforce information.

In considering the accessibility of pay policy statements published by Authorities, some Authorities demonstrate good practice by publishing information on their websites under either the front page heading of ‘About Us’ or ‘Publications’. The most accessible websites then direct the user to relevant information by making  one click through to subsequent headings of ‘Senior Pay Arrangements’ or ‘Pay Policy Statement’. From these initial easy to identify points, users could click through to other relevant information including specific terms of reference, policies and procedures, remuneration reports, financial statements and annual accounts.

The pay policy statement sets out the policy and procedures for decision-making concerning senior pay and pay for others staff. Some authorities adopt good practice by publishing their remuneration reports alongside the pay policy statement, demonstrating the outcome of their decision-making.

The Act requires authorities to state in their pay policy statements, their approach to the publication of and access to information relating to the remuneration of chief officers. Remuneration in relation to chief officers for the purposes of pay policy statements (as defined in section 43(3) of the Act) includes:

  • salary (for chief officers who are employees) or payment under a contract for services (for chief officers who are self-employed)
  • bonuses
  • charges, fees and allowances
  • benefits in kind
  • any increase or enhancement of the chief officer’s pension entitlement where that increase is a result of a resolution of the authority
  • any amounts payable on the chief officer ceasing to hold office or to be employed by the authority (future severance payments)  

The definition of chief officers (as set out in section 43(2) of the Act) is not limited to heads of paid service or statutory chief officers.  It includes those who report directly to them (non-statutory chief officers), to their direct reports (deputy chief officers) and, in the case of a fire and rescue authority, a deputy chief fire officer. 

Authorities are reminded the Act sets out the information they are required to include in their pay policy statements as a minimum. Authorities should consider whether, in the light of local circumstances and their own reward structures, it would be appropriate to extend the scope of their pay policy statement to include highly paid staff who would not come within the definition of chief officers. 

The Act does not require authorities to use their pay policy statements to publish specific numerical data on pay and reward. However, authorities should consider how the information set out within their pay policy statements fits with the data on pay and reward they publish separately. This includes data required to be published under the Accounts and Audit (Wales) Regulations 2014. Indeed, pay policy statements offer an opportunity to place the data firmly in the context of the council’s agreed policies, and to provide the public with a clear justification of how their money is being used appropriately in the pay and reward of senior staff.

Salaries on appointment

The Welsh Government recommends that in addition to agreeing the parameters for setting the pay of chief officers, full council or a meeting of FRA members should be offered the opportunity to vote on large salary packages which are to be offered in respect of new appointments in accordance with their agreed pay policy statements. The Welsh Ministers consider £100,000 is the right level for that threshold. 

For this purpose, salary packages should be consistent with the categories defined for remuneration in the Accounts and Audit (Wales) Regulations 2014.  This will include salary, bonuses, fees, allowances routinely payable, any expenses allowance chargeable to UK income tax, the relevant authorities’ contribution to the officer’s pension and any other benefits in kind to which the officer is entitled as a result of their employment.

Severance payments

A local authority is required, by virtue of regulation 7 of  the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006  to formulate, publish and keep under review the policy that they apply in the exercise of their discretionary powers under Regulations 5 and 6 of those Regulations.

Authorities should ensure the way they manage their workforce, including payments offered to chief officers leaving the authority, delivers the best value for money for local taxpayers and sets the right example on restraint.  Authorities are already required to publish their policy on offering discretionary compensation for relevant staff in the event of redundancy. The Act is intended to bring into the open the approach an authority may take in offering a severance payment to chief officers as part of a decision to terminate a contract for any reason. As with other elements of a pay policy statement, any decision an authority takes in relation to the award of severance to an individual chief officer must comply with their published policy for that year and should represent value for money for taxpayers.

The Restriction of Public Sector Exit Payments Regulations 2020 (SI 2020/1122) which came into force across the United Kingdom on 4 November 2020, places a cap of £95,000 on all exit payments. This means that all public bodies including local authorities must ensure that no exit payment is made to any employee or office holder that exceeds the £95,000 limit without Welsh Ministers’ approval.

The Welsh Government recommends authorities should offer full council or a meeting of FRA members the opportunity to vote on any severance packages that exceed the £95,000 limit before seeking Welsh Ministers approval.  Members must be made aware of any statutory or contractual entitlements due to the officer and the consequences of a non approval by council, in which failure to fulfil statutory or contractual obligations may enable the officer to claim damages for breach of contract.

In presenting information to full council, authorities should set out clearly all the components of relevant severance packages including any statutory or non-statutory components. 

It is also recommended that authorities’ scrutiny arrangements allow the appropriate overview and scrutiny committee or any other member-led pay or remuneration panel (or equivalent) to review the pay policy statements and any individual salary or severance packages for their chief officers. 

Good practice examples of pay policy statements refer to the publication of decisions of their remuneration committee (or equivalent) and provide a summary of the main outcomes sought through redundancy, redeployment schemes and business cases. Good practice examples make specific reference to considerations of value for money and the reasonableness of any payback periods.

Fairness

In his interim report, Will Hutton found top managers in local government had seen larger increases in pay than the lowest paid in their workforces and the pay ratios between local authority chief executives and the lowest paid had grown in the previous ten years. In his final report, Will Hutton went on to highlight the value in ensuring decisions about senior pay are taken in the context of similar decisions on lower paid staff, and the relationship between those decisions is considered.

The type of approach Hutton recommends enables a clearer debate about whether pay levels across an organisation are fair, and whether differing approaches to the pay and reward are justified. In this context, the Act requires authorities to set their policies on remuneration for their highest paid staff alongside their policies for their lowest paid employees. In addition, it requires each authority to explain what it thinks the relationship should be between the remuneration of its chief officers and its employees who are not chief officers. 

Hutton recommended the publication of an organisation’s pay multiple, the ratio between the highest paid employee and the median average earnings across an organisation, as a means of illustrating that relationship.

Additional elements that should be within the pay policy statement to demonstrate good practice include:

  • the highest pay point set by the body
  • the lowest pay point set by the body
  • the body’s approach to providing support designed for lower paid staff

Section 38(4) of the Act specifies in addition to senior salaries, that authorities must also make clear the approach they take to the award of other elements of senior remuneration, including bonuses, performance related pay as well as severance payments. This should also include any policy to award additional fees for chief officers for their local election duties. While some authorities have taken a decision to include such fees within a chief officer’s overall salary, others pay separate fees. Authorities should make clear in their pay policy statements which approach applies and, if separate fees are paid, describe their approach to setting and publishing these. 

In articulating their policies on performance related pay, authorities should consider Will Hutton’s recommendations on the value of a system of ‘earn back’ pay. Hutton considered senior staff could have an element of their basic pay ‘at risk’, to be earned back each year through meeting pre agreed objectives. It was his view, such an approach would allow pay to vary with performance and ensure public services do not offer rewards for failure. 

Most relevant authorities no longer have a performance related pay system that results in the payment of a bonus or other additional reward. It would be in the interests of the relevant authority to clearly state the arrangements that are in place where they do apply. Alternatively the relevant authority should confirm if they are considered and awarded, awarded but not accepted, or considered and not awarded.

Taxpayers rightly expect their interests are being protected including when senior staff move posts within the public sector, particularly when those moves could be seen to have the effect of driving up average pay levels across the sector. In addition, taxpayers should have the opportunity to question whether they are getting value for money from arrangements where it could appear the public sector is paying an individual twice, through salary and a pension, for doing the same job. Authorities should have an explicit policy in their pay statement as to whether they permit such practices within their workforces.

Authorities should use their pay policy statements to explain their policies toward the reward of chief officers who were previously employed by the authority and who, on ceasing to be employed, were in receipt of a severance or redundancy payment from that authority. This should include any local policy on ex-employees later engaged as chief officers under a contract for services. Similarly, authorities should include their policies toward the reward of chief officers who are also in receipt of a pension under the Local Government Pension Scheme or relevant firefighter pension scheme. These policies should take account of their agreed approach on abatement of pensions. 

The previous Chief Secretary to the Treasury has made clear the UK Government is committed to tackling all forms of tax avoidance. Public appointments involving arrangements where savings are made in tax and National Insurance contributions may be at the expense of other taxpayers or other parts of the public sector.

Good practice examples explain where off-payroll arrangements are likely to be considered appropriate, how these decisions are taken, who takes those decisions and how those engagements are kept under review and by whom.

In their approach to appointments, particularly senior appointments, authorities should consider the value for money to the whole of the public sector. In developing their pay policy statements, authorities should actively review their approach to the terms of remuneration for their senior appointments, particularly where arrangements exist which could be perceived as seeking to minimise tax payments. Authorities should develop, and include within their pay policy statements, a local policy on the use of such arrangements within their workforces. 

Scope for local variation

Pay policy statements must include an authority’s policy on the remuneration of its lowest paid employees. The Act also does not seek to impose a single definition of ‘lowest paid’ for these purposes. Instead, the Act requires authorities to develop their own definition of ‘lowest paid’, one which fits appropriately with their own local circumstances and explain why they have chosen that definition. In formulating such a definition, authorities may wish to consider any guidance provided by the sector for this purpose and whether it is appropriate to consult with relevant parties. 

Section 38(4) sets out in detail the specific elements which a pay policy statement must include in relation to senior pay. In addition to the information which is required by section 38(2) (b) (policies on the remuneration of an authority’s lowest paid employees), it is open to authorities to mirror this level of detail within the pay policy statement for their approach to the pay of those who are not chief officers. 

While section 38 of the Act specifies the information which must be included in a pay policy statement, authorities can include any additional information relating to their policies on pay they consider is appropriate to do so. 

For example, an authority which has or develops a local policy on the pay of staff working for external contractors with whom the authority has contracted to perform services, may wish to articulate that policy in its pay policy statement.  Similarly, an authority may consider it relevant or appropriate to explain its approach to any shared senior management arrangements it has in place. 

It is the strong view of the Welsh Government that, as a means of minimising senior salary costs, authorities should consider sharing appointments of senior staff with other organisations. In circumstances where an authority has made such a joint appointment or is considering doing so in the financial year to which the pay policy statement relates, the statement should provide details of:

  • any such existing appointments and the estimated annual salary and related savings which accrue to the authority
  • any such appointments which are in the process of being made or considered.  Where known, this should include the number and title of the posts concerned and the estimated savings which would accrue if an appointment were made jointly. 

Salaries payable to joint appointees are a matter for the employing organisations, having regard to their pay policy statements where relevant.  Such salaries may be higher than those payable to a single appointee (if, for instance, a joint appointee serves two authorities) but significantly less than twice as high.

Independent Remuneration Panel

There has, understandably, been a great deal of public scrutiny regarding the levels of remuneration awarded to senior local government staff. Given the continuing concern, and to ensure decisions to spend public money are subject to appropriate levels of accountability, authorities must have regard to any recommendation received from the Independent Remuneration Panel when performing their functions under section 38 or 39 of the Localism Act 2011. 

Section 143A of the Local Government (Wales) Measure 2011, as inserted by section 63 of the Local Government (Democracy) (Wales) Act 2013, refers to the Independent Remuneration Panel in Wales (IRP) and sets out their functions in relation to salaries of heads of paid service. 

The IRP may make recommendations to a qualifying relevant authority about:

  • any policy in the authority's pay policy statement which relates to the salary of the authority's head of paid service
  • any proposed change to the salary of the authority's head of paid service

Authorities must, before making a change to the salary of its head of paid service which is not commensurate with a change to the salaries of the authority's other staff:

  • consult the IRP about the proposed change
  • have regard to any recommendation received from the IRP when deciding whether or not to proceed with making the change

Authorities must provide the IRP with such information as the Panel may reasonably require in connection with the exercise of its functions and the IRP may publish any recommendations it makes.

The IRP must have regard to any guidance issued by the Welsh Ministers when exercising its functions.

Authorities should identify in their pay policy statement whether or not such a referral has been made to the IRP. If a referral has been made, the statement should include information on the nature of the referral, the IRP’s decision and the authority’s response.

The Local Government (Wales) Act 2015 extends the power of the IRP, under section 143A of the Local Government (Wales) Measure 2011 to cover salaries payable to chief officers (using the Localism Act definition) as well as chief executives. An authority which chooses not to follow the advice of the Panel may become subject to a Ministerial direction to reconsider their position. The Act also provides that authorities will be able to reduce (but not increase) the salary payable to their head of paid service in advance of a recommendation from the IRP, provided the contract under which the salary is payable does not prevent the authority from changing the salary after receiving a recommendation. 

Format and detail of pay policy statements

Authorities should ensure the information in pay policy statements is presented in a clear and accessible format, keeping jargon to a minimum and explaining any acronyms. 

To improve readability, authorities are encouraged to provide information on the purpose and scope of their statement and the legislative framework.

Authorities should set out clearly and separately their policies in relation to each of the requirements listed in section 38 of the Localism Act 2011. 

Authorities are encouraged to include accountability and decision‑making arrangements in their statement. This should include who in accordance with the constitution of their council is responsible for the decision-making in relation to the various policies outlined in their statement.

Authorities are encouraged to include a section in their statement which confirms a review of their policies has been completed and that they are current, and meet the principles of fairness, equality, accountability and value for money. 

Authorities are encouraged to include details of pension arrangements and leave entitlements if they consider this relevant to their statements.

A suggested pay policy statement has been issued by the Staff Commission.  This is not exhaustive and any pay policy statement need to reflect local circumstances and variations in each authority.

Annual report

Authorities should be aware that the Welsh Government framework document outlines that devolved public bodies should produce an annual report to include:

  • salary
  • pension
  • benefits in kind and non-taxable benefits
  • gender makeup of the senior team
  • details of severance packages which have been agreed during the reporting year, including robust business cases justifying the departure arrangements and representing real value for money

In addition, the Welsh Government framework document recommends all bodies should produce and publish equal pay reports.

A copy of the report provided to Welsh Ministers by the Public Services Staff Commission on ‘Transparency of Senior Remuneration in the devolved Welsh Public Sector’ is available. This includes good practice suggestions and examples for disclosures in annual reports and annual accounts. 

Sample pay policy statement

This is the <number> annual pay policy statement for the period <1 April 20yy to 31 March 20yy>. It was approved by the Board/Council on dd/mm/yyyy <link to minute>.

This pay policy statement provides the framework for decision-making on pay and, in particular, decision-making on senior pay.

It complements other information published on our website which is linked below. If you cannot find the information you are looking for, please contact us at: <link>.

Introduction from Chair/Leader

A brief personal statement that recognises the public interest in public sector pay and the importance of transparency and accountability set against the current strategic aims of the authority, including demonstrating value for money and the role senior leadership plays in service delivery.

Legislative Framework

A brief explanation of the legal entity, including a reference to establishment and where applicable the relationship with the Welsh Government.

Decision-making including Consideration of Value for Money

Provide a summary of the current terms and conditions of service for all staff in the authority.

An explanation about the job evaluation process should include how pay bands are determined, reviewed and pay awards considered. Explicit reference should be made to any nationally agreed terms and conditions.

Insert a link to the authority’s senior pay decision-making body, membership, terms of reference and minutes, eg. a remuneration committee.

Where applicable, delegated limits for decisions on pay should also be published.

Where changes to the post holders of senior posts and changes to the pay grades of existing post holders have been considered (even where not agreed), a summary narrative should be included.

Where agreement is made to pay outside or above the standard job evaluation process for senior posts, the degree of flexibility to make such decisions, eg. award a market pay supplement, should be stated explicitly and referenced to the relevant minute of approval.

Set out the collective bargaining relationship with Trades Unions with a link to the relevant <partnership agreement>.

Set out the criteria used for considering pay awards made during the year.

A local authority in Wales is required to consult the Independent Remuneration Panel for Wales about changes to senior staff pay. The pay policy statement should state where consultation has occurred during the year and what the outcome of that consultation was.

Senior Pay Remuneration

Role of the Chief Executive

The chief executive is the senior officer who leads and takes responsibility of the authority.  The authority has a turnover of £x million (£x million revenue and £y million capital) and is responsible for a wide range of services employing some xx staff.

The role of the chief executive is a (full time/permanent) appointment. Post-holders are selected on merit, against objective criteria, following public advertisement. They are appointed by (the council/chair/board).

As head of the paid service/organisation, the chief executive works closely with elected members/Board to deliver <summary of strategic aims>.

Include any out of normal working requirements for example; the chief executive routinely works evenings as well as the standard Monday to Friday business week. The chief executive also heads the ‘on call’ arrangements particularly to cover emergency planning requirements.

<Chief Executive’s Background>

Insert a brief pen picture of the post-holder and specifically when they took up post.

Chief Executive Pay

The salary for the chief executive is set out in the <pay bands>: the current range is £x to £y.

The chief executive may receive additional payments for any of the elections for where he/she is the Returning Officer.

Details of the chief executive’s pay, including any additional payments are published in the remuneration report. (This document is found in the annual accounts of the authority/published separately) and can be accessed here: <link>.

Expenses such as for train, car mileage, overnight accommodation and parking are claimed back in accordance with the authority’s travel and subsistence policy: <link>.

Where benefits-in-kind or other expenses are taken up, these are disclosed within the remuneration report.

The chief executive is a member of the <name> pension scheme and details are disclosed in the remuneration report. There have been no increases or enhancements to the pension outside of standard arrangements.

The notice period for the role is x months.

Senior Staff

The current definition for senior posts is classed as:

  • salaries in excess of £100,000
  • the head of the body’s paid service
  • its monitoring officer
  • a statutory chief officer
  • a non-statutory chief officer
  • a deputy chief officer
  • an executive director
  • a senior manager with or without board level responsibility who reports directly to the head of the body

We publish all <pay bands> and <a breakdown of staff numbers by pay band>. These posts are covered by a range of terms and conditions drawn from either:

  • Joint National Council for Chief Officers
  • Soulbury Committee
  • National Joint Council
  • Teachers
Employee group Terms and conditions Pension arrangements

All employees

(except those listed below)
   
Chief executive    
Senior staff    
Soulbury    
Schoolteachers    
Other    

Arrangements for approving benefits in kind and other allowances should also be explained.

Details of senior staff pay are published in the Statement of Accounts or remuneration report. This document is found in the annual accounts of the authority/published separately and can be accessed here: <link>.

Where permission to publish personal data has not been granted, names have been omitted.

The board/senior management team includes senior staff within the authority. The board/senior management team is chaired by <name> and meets xx.  Its role is primarily to <link to terms of reference>.

Talent Management

Provide an explanation of the authority’s approach to succession planning for specialist and senior posts. This is targeted at developing future leaders and innovative recruitment and learning and development practices that the authority uses to recruit and retain staff.

Performance Related Pay

Specific reference should be made to any performance related pay arrangements even where these are considered but not awarded or where they do not apply.

All staff have an annual performance appraisal which is supported by a performance development plan in line with the authority’s <performance management policy>. This policy also sets out arrangements for addressing under performance.

Support for Lower Paid Staff

Examples designed to support lower paid staff should be provided along with an assessment of take-up by lower paid staff and measurement of impact.

The authority should state its position with regards the recognised Living Wage Foundation rate of pay.

Highest and Lowest Pay Points

The lowest paid employee is on (Band x). The pay-band minimum is £x a year and rises to £x. This excludes apprentices who are engaged on different arrangements with training being the main feature of the arrangements. It also excludes agency staff.

The highest paid employee is <role> and the pay band minimum is £x rising to £x. The current post-holder earns £x.

A link to disclosure here or to in the remuneration report to also include:

The median salary in the authority during the year was at Band x and was £x.

Where the highest paid individual is not the chief executive, provide both ratios.

Exit Policy

The authority has <a policy> for severance or exit arrangements.

Specific details of schemes considered and/or agreed during the year should be referenced to the relevant minutes. The detailed costs and numbers of exit packages should be provided with a link to the remuneration report and to include:

  • salary paid in lieu
  • lump sum redundancy/severance payment
  • cost to the authority of any pension fund payment that arises on leaving

The authority should provide an explanation of any difference between costs to the authority and payment to the individual.

The authority should set out any arrangements where senior staff have been re-employed following redundancy or early retirement, and a summary of the reason for doing so with reference to the relevant minute of approval.

Off-payroll Arrangements

The authority should explain the type of circumstances where off-payroll arrangements are likely to be considered appropriate, how those decisions are taken, who takes those decisions and how those arrangements are kept under review and by whom.

Specific reference should be made to any off-payroll arrangements used during the year and referenced to the relevant minutes with a link to disclosure here or in the remuneration report.

It should be clear why such an arrangement has been approved, who approved it and how the arrangements will be kept under review.

Appendices

<Pay Bands>
<Staffing breakdown by band>
<Delegated limits for decisions on pay>
<Partnership agreements>
<Travel and subsistence policy>
<Redundancy/severance policy>
<Performance management policy>
<Annual leave policy>

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