There are different arrangements in place for some staff in Bands 8c, 8d and 9.

This is because, for staff in Bands 8c, 8d and 9 who are yet to reach the top of the band, basic pay at certain points of the three year agreement may be less than you could have expected under existing arrangements.

This is where a 1% pay award plus incremental progression over three years would have been worth more than the proposed changes at any point. This depends on the point at which an individuals’ incremental date is in the financial year.

Regardless of circumstances, there is a no detriment clause in the proposals.

Affected staff would receive a non-pensionable cash lump sum at the end of each pay year if your pay is calculated as being less than you could have expected under existing arrangements. This cash sum will be the value of any difference in basic pay in a pay year.

NHS Wales Employers have committed to providing guidance to affected staff, but a worked example of this is provided below.

Worked example

To assess whether the “no loss” principle applies you need to compare your earnings in each year of the deal with what a 1% pay award would have provided.

To do this you need to compare your salary across the whole of the financial year including your increment. An example is provided below.

Example

An individual on point band 8c point 44 with an incremental date of 1st October.

Year 1

In year 1 (2018/19), the salary under the three year deal from 1st April 2018 would be £63,966 and on 1stOctober 2018 would be £68,256.

If a 1% pay increase had been applied to point 44 then the salary on 1st April 2018 would have been £64,289 and from 1st October 2018 point 45 would have been £68,599.

So there is a loss both at both points.

The loss is calculated as follows:

1st April to 30th September (6 months).

£64,289 - £63,966 = £323 (full year loss) Divide by 6/12 = £161.50 (loss)

1st October to 31st March (6 months)

£68,599 - £68,256 = £343 (full year loss) Divide by 6/12 = £171.50 (loss)

Total loss £161.50 + £ 171.50 = £333 (paid as a non-consolidated cash lump sum in April 2019).

Year 2

In year 2 (2019/20), the salary under the three year deal from 1st April 2019 would be £69,007 and on 1st October 2019 would be £72,757.

If a 1% pay increase had been applied to point 45 then the salary on 1st April 2019 would have been £69,285 and from 1st October 2019 point 46 would have been £71,264.

So there is only a loss prior to 1st October.

To determine if there is a loss overall the following calculation is made:

1st April to 30th September (6 months).

£69,285 - £69,007 = £278 (full year loss) Divide by 6/12 = £139.00 (loss)

1st October to 31st March (6 months)

£71,264 - £72,597 = £1333 (full year gain) Divide by 6/12 = £666.50 (gain)

Total gain -£139.00 + £666.50 = £527.50

Across the 2019/20 financial year there is no loss and an overall gain of £527.50 in excess of the position had a 1% pay award been made.

Year 3

In year 3 (2020/21), the salary under the three year deal from 1st April 2020 would be £73,664. Point 46 is the top of the scale and so there would be no further progression.  

If a 1% pay increase had been applied to point 46 then the salary on 1st April 2019 would have been £71,977. This is lower than the salary under the three year deal and so no loss would have occurred.