Pay Policy Statement
2015/16
1
Contents
1.
INTRODUCTION AND PURPOSE
3
2.
LEGISLATIVE FRAMEWORK
3
3.0
SENIOR MANAGEMENT REMUNERATION POLICY
3
3.1
Senior Management Positions
4
3.2
Recruitment to Senior Management Positions
7
3.3
Additions to Salary of Senior Officers
7
3.4
Payments on Termination
8
3.5
Comparators Influencing Pay Levels
8
4.0
NON SENIOR OFFICER EMPLOYEES
9
4.1
Recruitment
9
4.2
Lowest Paid Employees
9
4.3
Accountability and Decision Making
5
PUBLICATION
10
10
APPENDIX 1 - BIRMINGHAM CITY COUNCIL – SENIOR OFFICER PAY SPINE
11
BIRMINGHAM CITY COUNCIL – NJC PAY SPINE
12
2
1.
Introduction and Purpose
This Pay Policy Statement sets out the Councils approach to pay policy in accordance with
the requirements of Section 38 to 43 of the Localism Act 2011 and takes account of the final
guidance for ‘Openness and Accountability in Local Pay’ as issued by the Department for
Communities and Local Government. The purpose of the statement is to provide
transparency with regard to the Council’s approach to setting the pay of its employees
(excluding those working in local authority schools) by identifying;
•
•
•
•
•
The methods by which salaries of all employees are determined.
The detail and level of remuneration of its most senior employee’s i.e. ‘chief officers’, as
defined by the relevant legislation.
The detail and level of remuneration of the lowest paid employees
The relationship between the remuneration for highest and lowest paid employees
The Committee(s)/Panel responsible for ensuring the provisions set out in this statement
are applied consistently throughout the Council and recommending any amendments to
the full Council.
Once approved by the full Council, this policy statement will come into immediate effect for
the 2015/16 financial year and will be subject to review again for 2016/17 in accordance with
the relevant legislation prevailing at that time. Where by the pay policy needs to be amended
during the current financial year, any amendments will be subject to approval.
2.
Legislative Framework
In determining the pay and remuneration of all of its employees, the Council will comply with
all relevant employment legislation. This includes the Equality Act 2010, Part Time
Employment (Prevention of Less Favorable Treatment) Regulations 2000, The Agency
Workers Regulations 2010 and where relevant, the Transfer of Undertakings (Protection of
Earnings) Regulations.
With regard to the Equal Pay requirements contained within the Equality Act, the Council
ensures there is no pay discrimination within its pay structures and that all pay differentials
can be objectively justified through the use of an equality proofed job evaluation scheme that
directly relates an employee’s salary to the requirements, demands and responsibilities of the
role.
3.0 Senior Management Remuneration Policy
For the purposes of this statement, senior officer means ‘chief officers’ as defined within S43
of the Localism Act 2011. The ‘Chief Executive is employed under the terms and conditions
of the Joint National Council for Chief Executives and all other senior officers are under the
terms and conditions for Joint National Council for Chief Officers.
The Council has job evaluation process and grading structure that has been specifically
designed for senior positions that determines the grade for senior officers as defined by the
Localism Act 2011. Progression within a grade is performance based on assessment through
the Performance and Development Review (PDR) and approval by JNC panel. There has
been a cost of living rise (2.2%) applied to the senior officer pay structure effective from 01
3
January 2015 and will only apply to those officers on a FTE basic salary of £99,999 or less as
at 31 December 2014. This is the first pay rise set by the ‘Joint Negotiating Committee for
Chief Officers of Local Authorities’ and is applicable until 31 March 2016. See appendix 1 for
the senior officer pay structure.
Those employees working in senior positions do not receive overtime payments and all other
pay related allowances are the subject of either nationally or locally negotiated rates, having
been determined from time to time in accordance with collective bargaining machinery and/or
as determined by Council Policy. In determining its grading structure and setting
remuneration levels for all posts, the Council takes account of the need to ensure value for
money in respect of the use of public expenditure, balanced against the need to recruit and
retain employees who are able to meet the requirements of providing high quality services to
the community, delivered effectively and efficiently and at times at which those services are
required.
In particular, it is Council's policy that no Chief Officer or Senior Officer (paid under JNC
conditions of service for Senior Officers) is paid a supplement for Returning Officer duties,
whether in respect of local elections or national elections (eg General Elections, elections for
European Parliament, national referenda etc). Fees paid in respect of these elections by
Government are used to supplement the pay of non-senior officer employees who have
worked on the relevant election.
3.1
Senior Management Positions
The posts falling within the statutory definition are set out below
a) Chief Executive -The head of paid service designated under section 4(1) of the Local
Government and Housing Act 1989.
The salary for this position falls within a range of 10 incremental points from £182,500
rising to a maximum of £220,000. There is no additional supplement paid for returning
officer duties incorporated into this role.
b) Director of Legal Services - Monitoring Officer designated under section 5(1) of that
Act.
The salary for this position falls within a range of 7 incremental points between
£99,144, rising to a maximum of £108,000.
c) Strategic Director (People) - A statutory chief officer mentioned in section 2(6) of that
Act. This position has responsibility for both Children and Adult services.
The salary for this position falls within a range of 7 incremental points between
£138,135, rising to a maximum of £153,483.
4
d) Executive Director Children’s Services - A statutory chief officer mentioned in section
2(6) of that Act.
The salary for this position falls within a range of 7 incremental points between
£130,000 rising to a maximum of £137,500
e) Director – Corporate Finance – Section 151 Officer - A statutory chief officer mentioned
in section 2(6) of that Act.
The salary for this position falls within a range of 7 incremental points between
£105,300, rising to a maximum of £117,000.
f) Deputy Chief Executive (Economy) - A non-statutory chief officer mentioned in section
2(7) of that Act.
The salary of the above post falls within a range of 7 incremental points between
£138,135, rising to a maximum of £153,483.
g) Strategic Director (Place) - A non-statutory chief officer mentioned in section 2(7) of
that Act.
The salary of this position falls within a range of 7 incremental points between
£138,135, rising to a maximum of £153,483.
h) Director of Public Health – A statutory post under section 73A (7) of the NHS Act 2006
The salary of the above post falls within a range of 8 incremental points between
£75,249, rising to a maximum of £101,451.
5
i) The positions in the table below are deputy chief officer as mentioned in section 2(8) of
that Act
Position Title
Director of Planning and Regeneration
Assistant Director Revenues and Benefits
Director of Property Services
Assistant Director Procurement
Assistant Director Corporate Strategy
Assistant Director Human Resources
Assistant Director Library of Birmingham
Assistant Director Development
Assistant Director Financial Services
Assistant Director Financial Strategy
Assistant Director Shared Services
***Head Of Service
Service Director Education and Commission
Director Health and Wellbeing Partnership
Service Director Joint Commissioning
Service Director Business Change
Service Director Policy and Commissioning
Assistant Director Intergrated Services North
Assistant Director Intergrated Services East
Assistand Director Finance People
Assistant Director Strategic Commission
Consultant Public Health
**Consultant Public Health
Head of Commisioning Public Health
Senior Coroner Birmingham and Solihull
Director of Highways and Resiliance
Service Director Homes and Neighbourhood
Service Director Regulation and Enforcement
Programme Director
Director of Fleet and Waste Management
Service Director Housing Transformation
Assistand Director Equality,Community Safety and Cohesion
Assistant Director Finance Place
Assistant Director Sports and Events
Dir
Economy
Economy
Economy
Economy
Economy
Economy
Economy
Economy
Economy
Economy
Economy
Economy
People
People
People
People
People
People
People
People
People
People
People
People
Place
Place
Place
Place
Place
Place
Place
Place
Place
Place
Salary Range
£105,300 - £117,000
£90,882 - £100,980
£82,620 - £91,800
£82,620 - £91,800
£82,620 - £91,800
£82,620 - £91,800
£78,489 - £87,210
£78,489 - £87,210
£78,489 - £87,210
£78,489 - £87,210
£78,489 - £87,210
£52,911 - £68,672
£105,300 - £117,000
£90,882 - £100,980
£90,882 - £100,980
£90,882 - £100,980
£90,882 - £100,980
£82,620 - £91,800
£82,620 - £91,800
£78,489 - £87,210
£78,489 - £87,210
*£75,249 - £101,451
*£65,922 - £81,618
*£65,922 - £81,618
£105,300 - £117,000
£90,882 - £100,980
£90,882 - £100,980
£90,882 - £100,980
£90,882 - £100,980
£90,882 - £100,980
£90,882 - £100,980
£82,620 - £91,800
£78,489 - £87,210
£78,489 - £87,210
* Salary ranges are outside of the council senior manager pay structure and relate to the NHS pay
structure due to a TUPE transfer of the Public Health function to the council.
** There are two positions
*** There are ten positions
6
i) Although not required by statute for the policy statement the following are other senior
officer positions within Birmingham City Council.
Position Title
Assistant Director Investvestment Enteprise and Employment
Assistant Director - Education and Skills Improvement
Assistant Director LAC Service
Assistant Director Integrated Services
Assistant Director Children with Complex Needs
Assistant Director Safeguard Development
Assistant Director Integrated Services South
Assistant Director Delivery
Assistant Director Workforce
Assistant Director Operations Commission
**Assistant Director Fleet and Wast Management (Ops)
Head of Service Integration
Dir
Economy
People
People
People
People
People
People
People
People
People
Place
Place
Salary Range
£78,489 - £87,210
£82,620 - £91,800
£82,620 - £91,800
£82,620 - £91,800
£82,620 - £91,800
£82,620 - £91,800
£82,620 - £91,800
£78,489 - £87,210
£78,489 - £87,210
£78,489 - £87,210
£78,489 - £87,210
£74,358 - £82,620
** There are two positions
The senior officer positions will continue to be reviewed on a regular basis as part of the
overall savings that have to be made by the Council due to the cuts faced by local authorities
in general over the next few years.
3.2
Recruitment to Senior Management Positions
The Councils policy and procedures with regard to recruitment of senior managers is set out
within the Officer Employment Procedure Rules as set out in [volume B, part 2(H) of the
Constitution. When recruiting to all posts the Council will take full and proper account of its
own Equal Opportunities, Recruitment and Redeployment policies. Appointments made at
this level will always include Council member representation as part of the recruitment
process.
The determination of the remuneration to be offered to any newly appointed chief officer will
be in accordance with the local JNC pay structure (further details can be found in Appendix 1)
and relevant policies in place at the time of recruitment. Where the Council is unable to
recruit to a post at the designated grade, it will consider the use of temporary market forces
supplements in accordance with its relevant policies.
Where the Council remains unable to recruit under an employment contract, or there is a
need for interim support to provide cover for a vacant substantive senior management
position, the Council will, where necessary, consider and utilise engaging individuals under
‘contracts for service’. These will be sourced through the relevant procurement process
ensuring the Council is able to demonstrate the maximum value for money benefits from
competition in securing the relevant service.
3.3
Additions to Salary of Senior Officers
The Council does not apply any bonus to the salary of senior officers, however progression
within the salary scales is performance related as mentioned under 3.0. There is no element
7
of earn back for senior managers salaries and any incremental progression is consolidated
into basic pay.
In addition to basic salary, set out below are details of other elements of ‘additional pay’ which
are chargeable to UK Income Tax and do not solely constitute reimbursement of expenses
incurred in the fulfillment of duties;
The following are applicable to all senior manager positions
• A mileage allowance is paid to all employees using their own vehicle for work purposes
and the payments are in linked to the approved HMRC rates (For current HMRC
mileage rates please see http://www.hmrc.gov.uk/paye/exb/a-z/m/mileageexpenses.htm)
• There are currently no salary supplements or additional payments for undertaking
additional responsibilities such as shared service provision with another local authority
or in respect of joint bodies.
• A market forces supplements are paid where it is justified in order to fulfil a position,
however, there are no such supplements being applied for Seniors officers at present
3.4
Payments on Termination
The Councils approach to statutory and discretionary payments on termination of employment
of senior managers, prior to reaching normal retirement age, is set out in accordance with
Regulations 5 and 6 of the Local Government (Early Termination of Employment)
(Discretionary Compensation) Regulations 2006, Regulations 12 and 13 of the Local
Government Pension Scheme (Benefits, Membership and Contribution) Regulations 2007.
Any other payments falling outside the provisions or the relevant periods of contractual notice
shall be subject to a formal decision made by the full Council or relevant elected members,
committee or panel of elected members with delegated authority to approve such payments.
3.5
Comparators Influencing Pay Levels
For the purpose of context in the local government sector, Birmingham City Council is not
only the largest local authority in the UK, but also the largest unitary authority in Europe
serving over one million residents and has a budget of c £3.5bn. To attract suitable
candidates for more senior positions that can demonstrate sufficient skills, experience and
capacity required at this level as would be evidenced for example by fulfilling a comparable
role in a large complex local authority, there is a very small pool from which to recruit with
other authorities offering very competitive salaries considering their size. As a comparison
the Core Cities group of councils that represents those of the largest eight economies outside
London in England, chief executive remuneration ranges from £160,000 to over £200,000.
For Liverpool and Manchester that serve a population of less than half of that of Birmingham,
both the top salaries are over £200,000.
As part of its overall and ongoing monitoring of alignment with external pay markets, both
within and outside the sector, the council will use available benchmark information as
appropriate.
8
4.0 Non Senior Officer Employees
Based on the application of an analytical job evaluation process, the Council uses the
nationally negotiated pay spine as the basis for its local grading structure (See appendix 2 for
the BCC pay spine). Progression within the grading structure is contingency based and has a
combination of service and contribution based increments within each of the grades (linked to
the outcome of the PDR process). This determines the salary of the large majority of the non
school based workforce, together with the use of other nationally defined rates where relevant
such as Soulbury and JNC/YC. The Council presently adheres to national pay bargaining in
respect of the national pay spine with the most recent increase effective 01 January 2015. In
addition to this increase a non-consolidated payment was also made as part of the national
agreement.
4.1
Recruitment
New appointments will normally be made at the minimum of the relevant grade, although this
can be varied where necessary to secure the best candidate. From time to time it may be
necessary to take account of the external pay market in order to attract and retain employees
with particular experience, skills and capacity. Where necessary, the Council will ensure the
requirement for such is objectively justified by reference to clear and transparent evidence of
relevant market comparators, using appropriate data sources available from within and
outside the local government sector.
4.2
Lowest Paid Employees
The lowest paid employee’s under a contract of employment with the Council are employed
on full time equivalent (FTE) salary in accordance with the minimum spinal column point
(SCP) currently in use within the Council’s grading structure. As at 1 April 2015, this is
£13,521 per annum (SCP5). However, as part of the national pay agreement for 2014 – 2015
this SCP will be deleted from 01 October 2015 all employees progressing to SCP6 from that
date at a FTE salary of £13,365.
The Council has chosen to pay a supplement to ensure the minimum FTE salary is £14,559
based on the ‘UK Living Wage’ equivalent of £7.65 per hour. Following the recent review of
the UK living wage this has become £7.85 per hour which is an equivalent of £14,940 FTE
salary and will be implemented with effect from 01 April 2015. For the purpose of this pay
statement the lowest paid employee’s will be defined as those on a FTE salary of £14,940
based on the UK living wage hourly rate of £7.85 per hour.
The statutory guidance under the Localism Act recommends the use of pay multiples as a
means of measuring the relationship between pay rates across the workforce and that of
senior managers, as included within the Hutton ‘Review of Fair Pay in the Public Sector’
(2010). The Hutton report was asked by Government to explore the case for a fixed limit on
dispersion of pay through a requirement that no public sector manager can earn more than 20
times the lowest paid person in the organisation. The report concluded that the relationship to
median earnings was a more relevant measure and the Government’s Code of
Recommended Practice on Data Transparency recommends the publication of the ratio
between highest paid salary and the median average salary of the whole of the authority’s
9
workforce. The ratio between the highest and lowest paid employees does not exceed 20
times, however the Council does not set a ratio ceiling within its pay policy for senior officers.
The current pay levels within the Council define the multiple between the lowest paid (FTE)
employee (£14,940 based on the UK living wage) and the Chief Executive (£182,500) as
12.2:1 and; between the lowest paid employee and average chief officer earnings (excluding
Chief Executive £91,896) as 6.1:1. The multiple between the median full time equivalent
earnings (£21,530) and the Chief Executive salary is 8.4:1 and; between the median full time
equivalent earnings and the average chief officer earnings is 4.2:1.
4.3
Accountability and Decision Making
In accordance with the Constitution of the Council, the JNC Committee are responsible for
decision making in relation to the recruitment, pay, terms and conditions and severance
arrangements in relation to employees of the Council.
5
Publication
Upon approval by the full Council, this statement will published on the Councils Website
www.birmingham.gov.uk/cosd and will also be available in additional formats by request. In
addition, for employees where the full time equivalent salary is £50,000 or more, excluding
employer superannuation contributions, the Councils Annual Statement of Accounts will
include the number of employees in bands of £5,000.
10
Appendix 1 - Birmingham City Council – Senior Officer Pay Spine
This is the locally negotiated pay spine for senior officers covered by JNC terms and
conditions of employment. These rates are effective from 01 January 2015, however SCP44
and above were not covered by the 2015 cost of living rise and have remained at the 2009
values
BCC
Grade
L02
L03
L04
L05
L06
Spinal
Column
Point
9
10
11
12
13
14
15
17
18
19
20
21
22
23
25
26
27
28
29
30
31
33
34
35
36
37
38
39
41
42
44
45
46
47
FTE
Salary
74,358
75,735
77,112
78,489
79,866
81,243
82,620
78,489
79,943
81,396
82,850
84,303
85,757
87,210
82,620
84,150
85,680
87,210
88,740
90,270
91,800
90,882
92,565
94,248
95,931
97,614
99,297
100,980
99,144
100,980
102,600
104,400
106,200
108,000
BCC
Grade
L07
L08A
L08
L10
Spinal
Column
Point
49
50
51
52
53
54
55
75
76
77
78
79
80
81
57
58
59
60
61
62
63
65
66
67
68
69
70
71
72
73
74
FTE
Salary
105,300
107,250
109,200
111,150
113,100
115,050
117,000
130,000
131,250
132,500
133,750
135,000
136,250
137,500
138,135
140,693
143,251
145,814
148,376
150,930
153,483
182,500
190,000
193,750
197,500
201,250
205,000
208,750
212,500
216,250
220,000
Note that SCP43 is no longer in use following the 01 January 2015 pay award
11
Birmingham City Council – NJC Pay Spine
The Birmingham City Council pay spine is based on nationally negotiated rates through the
National Joint Council. These rates are effective from January 2015 and there have been no
increases since that date. Spinal column points with * indicate the payment of a living wage
enhancement that would equate to an FTE salary of £14,940 with effect from 01 April 2015.
BCC
Grade
GR1
GR2
GR3
GR4
Column
Point
005*
006*
007*
008*
009*
10*
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
FTE
Salary
13,521
13,635
13,736
13,892
14,096
14,359
14,940
15,544
15,962
16,231
16,572
16,969
17,372
17,714
18,376
19,048
19,742
20,253
20,849
21,530
22,212
22,937
23,698
24,472
25,440
26,293
27,123
27,924
28,746
29,558
30,178
30,978
31,846
BCC
Grade
GR5
GR6
GR7
Column
Point
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
FTE
Salary
32,778
33,857
34,746
35,662
36,571
37,483
38,405
39,267
40,217
41,140
42,053
42,957
44,343
45,739
47,132
48,538
49,926
51,422
52,911
54,419
56,181
58,012
59,907
61,866
63,901
66,001
68,672
12