Scottish Government

I GLOSSARY AND ABBREVIATIONS

Glossary

Banding

The category (1, 2 or 3) within the Daily Fee Framework to which a public body is allocated for the purposes of assessing daily fees. There is not necessarily any relationship between the pay band of a Chief Executive and the banding of the body to which they have been appointed.

Base pay

The annual salary excluding the cost of any bonus, pensions and other non-salary rewards. Also known as 'basic pay'.

Basic award

The increase available to Chief Executives on spot rates and one element (the other being 'progression') of the award to Chief Executives on pay ranges. It is also the amount by which the daily fee of a Chair or Member can increase.

Bonus

The non-consolidated, non-pensionable element of a remuneration package for Chief Executives. The current limit for new packages is a maximum potential bonus of 10% of gross salary payable in the year to which the performance relates. Bonuses can only be awarded in the year following the performance year and so are subject to the following year's Public Sector Pay Policy for Senior Appointments.

Business case

The document which contains evidence and information in support of the proposals you are making.

Ceiling

The absolute limit for salary / pay range maxima in the Scottish Chief Executive Pay Framework or for a daily fee in the Daily Fee Framework.

Consolidated

Pay which is taken into account for pension purposes.

Daily fee

The amount a Chair or Member is remunerated per day. This can be expressed as an annual sum, but changes to the number of days worked should not result in a change to the daily fee. The fee may be paid in a half-day or hourly amount.

Daily Fee Framework

The framework within which the daily fee of a Chair or Member of a Scottish public body is expected to sit. It contains minima, maxima and ceilings for four Bands of public bodies.

Fixed Salary Element ( FSE)

Historically, a fixed annual sum which was paid annually on top of certain Chairs' or Members' daily fees and was usually only made available to those public appointments with a commitment of more than 12 days per annum. This is no longer pay policy.

Gross daily fee

The daily fee inclusive of any employer pension contributions made by the public body.

Higher Market Reference ( HMR) Point

The point between the maximum and ceiling in a Pay Band in the Scottish Chief Executive Pay Framework. It allows for pay above the expected maximum where market evidence supports a higher level of pay.

Journey time

The time (in years) taken by a Chief Executive on a pay range to move (subject to satisfactory performance) from the minimum to the maximum of that pay range.

Market median

The middle point of the range of salaries in the relevant market for similarly weighted posts.

Market rate

The market median in the relevant market for similarly weighted posts.

Maximum / Maxima

The highest point on a pay range.

Median

The middle point in a series.

Minimum / Minima

The lowest point on a pay range.

Non-Consolidated Payments

Payments that are not consolidated into base pay, they are not pensionable and are often used to reward exceptional performance in the form of bonuses.

Non-salary Rewards

Remuneration other than pay, for example, car, health insurance, etc.

Outturn

The remuneration implemented and paid out in the previous year.

Pay Band

The category (1, 1A, 2 or 3) within the Scottish Chief Executive Pay Framework to which a Chief Executives is allocated following a job evaluation exercise. It is based on equivalent Senior Civil Service posts.

Pay Range

The pay scale for a Chief Executive with a minimum and a maximum and through which the Chief Executive progresses as they develop in knowledge, skills and experience in line with performance.

Pay steps

The anticipated pay levels over the course of a pay range. Movement to each step is not guaranteed unless as part of a multi-year agreement.

Progression

The movement that a Chief Executive makes from the minimum of a pay range to the maximum, subject to satisfactory performance.

Progression steps

The anticipated annual performance-based increase, subject to satisfactory performance

Quartile

Twenty-five percent of a pay range, for example, the lowest quartile will be the pay range from the minimum to a point 25% up that pay range.

Relevant labour market

The labour market that reflects the comparators for the particular post. It consists of the market from which the Chief Executive, Chair or Member might be recruited.

Scottish Chief Executive Pay Framework

The framework of minima, maxima and ceilings within which the pay of a Chief Executive of a Scottish public body falls.

Scottish public sector labour market

Chief Executives, Chairs and Members of Scottish public bodies subject to Scottish Government policy on public sector pay.

Settlement date

The date on which a pay rise becomes due.

Spot rate

A single salary figure which reflects the market rate for that post.

Submission

The paper to the Remuneration Group that seeks approval for proposed increases and changes in remuneration.

Total Award Limit / Total Limit

The limit, for Chief Executives on pay ranges, representing the combination of basic award and progression.

Total Cash / Total Reward

All rewards for Chief Executives, including base pay, performance related pay, bonuses and employee benefits, such as flexible working, training and development opportunities.

Tribunals

A particular type of Scottish NDPB whose Chair, Members and panel members may be subject to the Tribunal pay band within the Daily Fee Framework.

Commonly used abbreviations in dialogue between public bodies / sponsor teams and the Finance Pay Policy team