The Scottish Government today published its Public Sector Pay Policy for Senior Appointments.

The policy, which covers Chief Executives of Non-Departmental Public Bodies (NDPBs), Public Corporations and, for the first time, NHS Executives and Senior Managers, states there will be no basic award in 2010-11, reflecting the decision by Scottish Ministers to impose a pay freeze.

Finance Secretary John Swinney said:

"We are facing a period of real financial constraint, which is why every effort must be made to ensure that pay - especially for the highest paid people in the public sector - is affordable and sustainable.

"Scottish Government Ministers have already shown a lead in pay issues by taking a pay freeze both last year and this - and today's policy formally extends that approach to the highest paid people across the public sector whose pay arrangements come under our control."

Mr Swinney is again writing to NDPB and Public Corporation Chief Executives, who may have earned a bonus in respect of exceptional performance in 2009-10, to consider waiving some or all of the payment.

He added:

"In the current climate, the public quite rightly believe large bonuses paid out on a routine basis are unacceptable. While we are tied into certain contracts that rule out prohibiting bonuses across the public sector, I want to be absolutely clear that we will ensure that where a bonus is offered, this should be for genuinely exceptional performance only. I also expect Chief Executives in NDPBs and Public Corporations to waive voluntarily some or all of any bonus earned - something not happening elsewhere in the UK.

"I asked this of Chief Executives last year, with positive responses and am doing so again this year. There are many senior employees across the public sector doing an excellent job, but we must reflect the very real tightening in the public finances this year. Our approach is the best way to do that.

"This comes as we take action to ensure greater efficiencies across the public sector in the interests of taxpayers. At 3.1 per cent, we exceeded our two per cent efficiency savings target for 2008-09, a figure which has been reported as taking the UK Government two years to match.

"The policy we have put in place offers a realistic approach to public sector pay in the current financial climate. It is right for public bodies, right for taxpayers, right for Scotland and right for our times."

It applies to Chief Executives of NDPBs and Public Corporations. As this policy now also covers staff on NHS Executive and Senior Management grades D to I, the Cabinet Secretary for Health and Wellbeing will be writing separately to NHS organisations. The policy now applies to 240 of the most senior NHS managers and the maximum of the pay ranges for this group of staff will remain at 2008-09 levels.

Mr Swinney is asking Chief Executives of NDPBs and Public Corporations to consider waiving voluntarily some or all of any bonus that may be offered to them in 2010-11 (reflecting their exceptional performance in 2009-10).

As with staff pay remits, any previously approved multi-year deals will be honoured.

While any Chief Executive on a pay range will have that range frozen, the Government is legally obliged to make provision for progression but this has been limited to a maximum of 1.5 per cent in the 2010-11 policy, to ensure pay remains sustainable and affordable. All proposals - including those for bonuses - continue to require Scottish Government approval.

Pay in the senior civil service (including the Scottish Government, its agencies and associated departments) and Judiciary is reserved to Westminster. Local government pay is a matter for councils to determine, while pay for senior officers in the police and fire services is determined through other arrangements. Pay for doctors and dentists is set by reference to recommendation from the Doctors' and Dentists' Review Body (DDRB) which reported last month. Most of these groups of senior staff will see a zero basic pay award in 2010-11.

http://www.scotland.gov.uk/News/Releases/2010/05/05115344