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GLOSSARY
Baseline Paybill
The cost of employing your staff for the 12 months of the pay remit year before you implement the pay award and includes mandatory increases in pensions contributions or employers National Insurance Contributions. It excludes the costs of increases in pay and benefits for which you are seeking approval.
Basic Award
The inflation or cost of living element of the pay award. It is one element of a standard remit.
Business Case
The word document that contains information and argument that supports the proposals you are making.
Buying-out
The offering of a one off non-consolidated payment in return for agreeing the removal of a particular pay or non-pay reward.
Coherence
The policy of bringing together levels of pay towards a market median with the aim of making sure that individuals undertaking similar roles in different public bodies receive similar levels of pay.
Consolidated Performance Payments
Payments that reward exceptional or outstanding performance and are consolidated into individual employees' basic pay.
Harmonising
A process of equalising the pay and benefits of two or more groups of staff usually following a merger.
Headline Cost
This is the monetary increase to the baseline paybill as a result of your pay proposals. It is expressed as a percentage of the baseline paybill.
Increase for Staff in Post Percentage
This is the cost of the proposed increase in pay and benefits as a percentage of the baseline paybill.
Increase in the Paybill per Head
The result of comparing the Paybill per Head for the current remit with the Paybill per Head for the last remit. It is expressed as a percentage of the Paybill per Head for the last remit.
ISP
An abbreviation for the Increase for Staff in Post percentage.
Maxima
The highest point on a pay scale, sometimes known as the rate for the job.
New Money
The amount of money that the proposed increase in pay and benefits adds to your existing paybill.
Non-consolidated Pot
A pot of money that once established is carried forward in the baseline paybill each year and is used to make non-consolidated payments such as bonuses or payments to staff on their maxima.
Non-consolidated Payments
Payments that are not consolidated into basic pay, they are not pensionable and are often used to reward out performance in the form of bonuses.
Particular Labour Market
The labour market that reflects the comparators for particular workforce group(s). It consists of the bodies that your organisation has lost staff to or gained staff from in recent years. It may be a specific or specialist labour market.
Pay Ranges
The pay scale for each grade or role within a public body, with a minimum and a maximum or target rate and through which staff progress as they develop in knowledge, skills, experience and performance.
Pay Remit
Pay proposals made by public bodies that seek approval for increases in pay and benefits for staff.
Paybill
The full annual cost of employing your staff, including National Insurance and Employer's Pension Contributions.
Paybill per Head
The cost of employing staff following the implementation of the pay award as divided by the number of staff (full time equivalent).
Paybill savings
Savings in your paybill that can be re-utilised to part fund a pay award. They can include recyclable savings (see below); savings resulting from the removal of outdated allowances; reductions in overtime costs and reductions in staffing.
Proformas
Excel spreadsheets that set out what was actually paid as a result of the last pay award; the costs of the increase in pay and benefits that you intend to make and details of your pay and reward structure as well as details of current and projected staffing.
Progression
The movement that an individual makes from the minimum of a pay scale to the maximum or target rate depending on performance.
Progression journey times
The number of years it takes to move from the minimum of a pay range to the maximum or target rate.
Public Sector Labour Market
The labour market data provided by Finance Pay Policy. This is the public bodies in Scotland subject to Scottish Government policy on public sector pay, UK Government Departments employing more than 25 staff in Scotland and Scottish Local Authorities.
Recyclable Savings
Savings that are a consequence of a more highly paid member of staff being replaced by a lower paid individual (see Paybill Savings).
Relevant Labour Market
The Scottish public sector labour market or a more appropriate specific or specialist labour market for specific workforce groups, specialisms or locations.
Standard Remit Elements
The elements that form part of almost all pay remits: progression, the basic award, non-consolidated payments (over and above the non-consolidated pot that is included the baseline paybill), consolidated performance payments and the resulting increases in the costs of overtime, allowances, employers pension contributions and National Insurance.
Standard Remit Limit
The limit placed on the standard remit elements of pay proposals. In 2008-09 this is an absolute limit of 3.75% Increase for Staff in Post.
Submission
The paper to the Remuneration Group and Ministers that seeks approval for your proposed increases in pay and benefits.
Target Rates
The points in the pay system that reflect competence in a role, often the maximum of the pay range.
Total increase for Staff in Post
The full costs of the proposed increases in pay and benefits regardless of whether they add costs to the paybill.
Total Reward
All rewards for staff, including base pay, performance related pay, bonuses and employee benefits, such as flexible working and training & development opportunities.
Turnover
The movement of staff out of and into your organisation in a year.
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