UK Pay Policy

UK Pay Policy

The British Council reviews pay of its UK staff annually. The Treasury pay remit process covers the pay setting arrangements across the Civil Service, including Non-Departmental Public Bodies (NDPBs) like the British Council. HM Treasury produces annual pay remit guidance which all Civil Service employers must follow when preparing their pay remit. The guidance defines how much Civil Service employers can spend on pay and the core pay principles they must employ e.g. linking pay to performance.

Once the British Council has received formal approval on funding, Human Resources then enters into formal pay negotiations with trade union side (TUS) on how money will be allocated.

When the pay negotiations have been completed, the pay award is implemented and payment is made in the August pay run. If the pay award is implemented after 1 August, increases are backdated to 1 August.
The annual pay remit process reviews the following:
• Increases to pay range minima and maxima based on market data
• Individual salary increases linked to performance
• Individual performance bonuses
• Cash and non-cash benefits

 

Pay Principles

The UK pay system adopts the following reward principles:
1. To work within financial constraints and use those limited funds in the most effective way to support the business and workforce needs
2. To provide a strong relationship between pay and performance with annual salary increases and bonuses reflecting performance (behaviours and delivery) in the job
3. To ensure that total remuneration (salary and cash benefits e.g. pension) are appropriately aligned with external job market so that British Council can recruit and retain people with the right skills
4. To effectively tailor and promote all aspects of the employee offer (pay, benefits, personal development, career progression, work-life balance, and environment and culture) to attract, engage and retain the right talent
5. To promote an equal pay agenda by ensuring that pay systems meet legislative requirements and to actively work towards reducing any unjustified gender pay gaps
6. To take a flexible approach and to tailor reward to reflect the type of work staff are engaged in.

 

Pay structure and policy for pay bands 4 to 8

UK staff, below senior management, are placed in one of four pay bands:
1. junior management and administration, for which there are two pay bands: 4 and 6
2. middle management, for which there are two pay bands: 7 and 8

 

2014/15 Pay Bands effective from 1 August 2014

Pay Band      Min              Max
4                  £15,150       £17,850
6                  £18,988       £23,327
7                  £25,250       £31,824
8                  £31,815       £45,900

 

Pay progression

Our normal approach to pay is to use performance ratings to determine pay progression. For 2014/15 the increase in salary for staff who achieved a performance rating of 1 or 2 was 2% and for staff who achieved a rating of 3 or 4 the increase was 1%.

 

Staff at or above the maximum of their pay band

A non-consolidated payment to the value of the relevant percentage increase is awarded, so paid as a lump sum which is not added to salary (unless the maximum of the pay band is increased when the band is reviewed).

The payment is subject to income tax deductions and notional tax for UK-appointed staff overseas. It is not included in the calculations of any overseas allowances. It does not count for pension purposes.

 

Performance ratings

Depending on how members of staff perform in their job they will receive one of the following ratings:
1 (denotes an outstanding performance)
2 (denotes a performance which exceeds expectations)
3 (denotes an overall good performance)
4 (denotes a performance where development and improvement is required)
5 (denotes an unsatisfactory performance)

 

Bonus Payments

In addition to an increase to salary staff may be eligible to a cash bonus which is discretionary and linked to performance.  The value of the bonus is determined by pay band and performance. Bonus amounts are reviewed each year. Bonuses do not count for pension purposes.

The payment is subject to income tax deductions and notional tax for UK appointed staff overseas. It is not included in the calculations of any overseas allowances. It is also not counted towards the employer contributions to pension.

 

Performance Bonus Payments for 2014

Rating                               Bonus           Rating              Bonus           Rating              Bonus
1                                                            2                                           3  
Pay band 4                        £1,875         Pay band 4       £1,125          Pay band 4       £750
Pay band 6                        £2,125         Pay band 6       £1,350          Pay band 6       £900
Pay band 7                        £2,500         Pay band 7       £1,500          Pay band 7       £1000
Pay band 8                         £2,975        Pay band 8       £1,725          Pay band 8       £1,150
Senior Management (9a)     £3,500       Pay band 9a     £2,100          Pay band 9a     £1,400
Senior Management (9b)     £4,250       Pay band 9b     £2,550          Pay band 9b     £1,700
Senior Management (10)     £8,750       Pay band 10     £5,250          Pay band 10     £3,500

Bonus payments are paid pro rata to staff working part-time (e.g. less than 36 hours net)

 

Starting Salaries

Internally recruited staff will move on their current salary if they are moving to a new job within the same pay band. If they are a promoted to a higher pay band then the normal promotion rules will apply.

Externally recruited staff will start on the minimum of the relevant pay range, unless there is a sound case for them to enter on a higher salary. Salaries for new recruits which exceed the mid-point of the pay range will require approval from the Global Reward team.

 

London Market Allowance

Staff who work in our London Office receive a London Market allowance (LMA) which is an allowance paid in addition to their salary. The allowance is given in recognition of the high cost of living in London. The allowance is currently worth £3,300.

 

Senior Management Broad Band

As of 1 October 2014 all senior roles will transition to a single broad band. The broad band is divided into three levels of work. Where roles are positioned within the broad band is determined by job evaluation. We use the Hay Group job evaluation system to evaluate all senior roles in the British Council.

 

Pay progression

Our normal approach to pay is to use performance ratings to determine pay progression. For 2014/15 the increase in salary for staff who achieved a performance rating of 1 or 2 was 2% and for staff who achieved a rating of 3 or 4 the increase was 1%.