Pay policy statement

Pay policy statement 2025-2026

The purpose of the statement is to provide transparency in respect of the council’s approach to setting the pay of its employees (excluding teaching staff 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 staff and the agreed decision-making arrangements for ensuring the provisions set out in this statement are applied consistently throughout the Council.

1.0. Introduction and purpose

1.1. In accordance with section 112 of the Local Government Act 1972, the Council has the “power to appoint officers on such reasonable terms and conditions as the authority thinks fit”. This Pay Policy Statement sets out the Council’s approach to pay in accordance with the requirements of Section 38 of the Localism Act 2011.

1.2. The purpose of the statement is to provide transparency with regard to the Council’s approach to setting the pay of its employees (excluding teaching staff 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 staff i.e. ‘Chief Officers’, as defined by the relevant legislation;
• The constitutional arrangements in place for ensuring the provisions set out in this statement are applied consistently throughout the Council and recommending any amendments to the full Council.

1.3. This policy statement will be subject to review on an annual basis.

1.4. The previous Pay Policy Statement (2024-25) was agreed at full Council on the 20 March 2024.

2.0. Context: Legislation relevant to pay and remuneration

2.1.In determining the pay and remuneration of all of its employees, the Council will comply with all relevant employment legislation. This includes legislation such as the Equality Act 2010, Part Time Employment (Prevention of Less Favourable Treatment) Regulations 2000, Statutory Guidance on the Making and Disclosure of Special Severance Payments by Local Authorities in England and, where relevant, the Transfer of Undertakings (Protection of Earnings) Regulations.

2.2. The Council will ensure there is no pay discrimination within its pay structures and that all pay differentials can be objectively justified through the use of job evaluation mechanisms, which directly establish the relative levels of posts in grades according to the requirements, demands and responsibilities of the role.  

2.3 As referenced below in paragraphs 3.2, 3.7 and 3.9 there are a small number of limited circumstances in which the basic pay of staff may vary from that set out within the nationally agreed pay scales: 

1. Through the application of non-consolidated supplements to increase the lowest point of pay to meet the Council’s commitment to the Real Living Wage and maintain appropriate pay differentials above that point. Such payments are made consistently to all staff at a particular Spinal Column Point and do not affect the ranking order of posts as determined through job evaluation.
2. Through the application of the Council’s Market Supplement Policy. Such payments are not made consistently to all staff at a particular Grade or Spinal Column Point and may legitimately affect the remuneration of staff in relation to the ranking order of posts as determined through job evaluation as set out within the Market Supplement Policy.
3. Through the application of the Council’s Pay protection Policy. Such payments are made to staff for a time-limited period to mitigate reduction in salary following redeployment into a lower graded post or organizational change. These payments may legitimately affect the remuneration of staff in relation to the ranking order of posts as determined through job evaluation for a defined period.

The above circumstances are consistent with the assurance in relation to pay discrimination as set out in paragraph 2.2 above.

3.0. Pay structure

3.1. The Council uses the nationally negotiated pay spine(s) (i.e. a defined list of salary points) as the basis for its main local pay structure. These pay spines are used to determine the salaries of the large majority of the Council’s non-teaching workforce. Rates of pay are subject to an annual pay award applied from the 1^st April. The pay award due to be applied from 1^st April 2025 is not yet agreed. Subject to approval of this Statement, the pay structure for 2025/26 is attached at Appendix 1. This will be updated to reflect the relevant national pay award for 2025/26 as and when it is agreed. Staff who transferred to the Council through a TUPE process (including those formerly employed by Six Town Housing) are paid in line with their existing pay structures in accordance with legal TUPE protections. 

3.2. The Council has been formally accredited by the Real Living Wage Foundation as a Real Living Wage employer. The Real Living Wage rate at 1 April 2024 was £12.00 and the Council’s pay structure included a number of non-consolidated supplements paid at Spinal Column Points 2 to 5 to both apply the Real Living Wage rate of pay and maintain appropriate differentials to other pay points. Following agreement of the 2024/25 Pay Award, the lowest spinal column point rose to £12.26 well above the £12.00 and the non-consolidated supplements were removed. The Real Living Wage rose to £12.60 on 23 October 2024 and the Council has until 1 May 2025 to implement this. To maintain its commitment to the Real Living Wage, non-consolidated supplements will be reintroduced with effect from 1 April 2025 and paid on spinal column points 2 to 4. Once the 2025/26 Pay Award is agreed and implemented the level of non-consolidated supplements will reduce so that, as a minimum, the overall level of hourly pay is retained. 

3.3. The pay and terms and conditions of employment of the Council’s workforce are largely determined by the following negotiating bodies in accordance with the agreed collective bargaining machinery:

• National Joint Council (NJC) for Local Government Services;
• The Soulbury Committee, (educational advisers/inspectors, other school improvement professionals, educational psychologists)
• Joint Negotiating Committee (JNC) for Local Authority Craft and Associated Employees;
• Joint Negotiating Committee for Youth and Community Workers;
• Joint Negotiating Committee (JNC) for Chief Officers
• Joint Negotiating Committee (JNC) for Chief Executives

3.4. The Council adopts the national pay bargaining arrangements in respect of the establishment and revision of the national pay spines.

3.5. The pay of those employees whose terms and conditions fall within the purview of the Joint Negotiating Committee for Chief Executive’s and the Joint Negotiating Committee for Chief Officers are also determined by reference to Joint Secretarial advice issued by the JNC for Chief Officers of Local Authorities in 2002. The Joint Secretarial advice recommended the establishment of local salary structures as a result of a move from benchmark to median salaries, identified through the annual salary and numbers survey conducted by the Local Government Employers’ Organisation.

3.6. All other pay related allowances are the subject of either nationally or locally negotiated rates.

3.7. The Council is committed to the principles of equal pay for all its employees, and to ensuring that there is consistency and fairness in the approach to starting salaries and has guidance for managers in this area. All new appointments (whether new recruits to the Council or an internal candidate) will ordinarily commence at the minimum spinal column point (SCP) of the relevant grade. Appointments will not be made higher up the grade in order to preserve salary, although pay protection arrangements are available in relevant situations.

3.8. In exceptional circumstances and following the completion and documentation by the senior recruiting manager of an equal pay risk assessment, an appointment may be made with a starting salary higher than the minimum point. In these exceptional circumstances where the appointment salary is above the minimum point of the pay scale and is not affected by other council policies, for example redeployment or flexible retirement, this is approved by the Head of Human Resources.  

3.9. From time to time it may be necessary to take account of the external pay levels in the labour 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 data sources available from within the local government sector and outside, as appropriate. Any temporary supplement to the salary scale for the grade is approved in accordance with the Council’s Market Supplement Policy.

3.10. The Council has a number of salary sacrifice schemes in place. These include the cycle to work scheme, the AVC scheme and the car lease scheme. These schemes and their operation are regulated by Her Majesty’s Customs and Excise and there are strict rules around the management of the schemes. The schemes permit employees to “sacrifice” part of their salary in exchange for a benefit; this means that some Tax, National Insurance and / or Pension contributions are not paid on the amount sacrificed effectively reducing the cost of the benefit to the employee. These schemes are open to all employees at the Council with the proviso that their salary exceeds the National Minimum Wage after the deduction. In addition to these schemes the Council has a number of other employee benefits.

4.0. Chief officer remuneration

4.1. For the purposes of this statement, chief officers are as defined within the Localism Act; i.e.

1. The head of the paid service designated under section 4(1) of the Local Government and Housing Act 1989;
2. The monitoring officer designated under section 5(1) of that Act;
3. A statutory chief officer mentioned in section 2(6) of that Act;
4. A non-statutory chief officer mentioned in section 2(7) of that Act;
5. A deputy chief officer mentioned in section 2(8) of that Act.

4.2. The Council’s pay structure in relation to these posts is appended below and details of the Council’s current Chief Officer Structure and pay rates are published on the Council’s website. Rates of pay are subject to an annual pay award applied from the 1st April (The pay scales appended take into account the pay award for 2024-25 but not the award for 2025-26 which has not yet been agreed).

4.3. When establishing or reviewing the senior management salary structure the Council uses an analytical job evaluation scheme to determine grades. The broad advice issued by the Joint Negotiating Committees for Chief Executives and Chief Officers, on the establishment of a local salary structure based on median salary levels as identified through the annual salary survey is taken into account. This advice states that when deciding at what level these posts should be remunerated the following factors are to be considered:

1. The Authority’s policy in respect of the pay of its JNC officers and any relationship to the median salary levels for similar Authorities;
2. The chief executive’s salary;
3. The relationship of current salary to the appropriate illustrative national median salary (salaries may be above, around, or below the median);
4. Any special market considerations;
5. Any substantial local factors not common to authorities of similar type and size, e.g. London weighting;
6. Comparative information to be supplied on request by the Joint Secretaries on salaries in other similar authorities;
7. Top management structures and the size of the management team compared to those of other authorities of similar type and size, and;
8. The relative job size of each post, as objectively assessed through job evaluation or otherwise.

4.4. Changes to the establishment are approved by the Cabinet Member for HR and Corporate Affairs. The establishment of Chief Officer and Deputy Chief Officer posts are subject to approval by the Employment Panel (or Cabinet when linked to an organisational structure change).

4.5. The establishment of posts with salary levels at £100K or greater are ultimately subject to approval by full Council in accordance with the Localism Act (2011). This requirement only applies to new positions established and not to the filling of existing roles on the Council’s establishment. 

4.6. Where the Council is unable to recruit chief officers, or there is a need for interim support to provide cover for a substantive chief officer post, the Council will, where necessary, consider engaging individuals under a ‘contract for service’. These will be sourced through a relevant procurement process ensuring the council is able to demonstrate the maximum value for money. In assessing such, it should be noted that in respect of such engagements the Council is not required to make either pension or national insurance contributions for such individuals who fall outside of the IR35 Regulations and might be considered as self employed by the HMRC.

5.0. Recruitment of chief officers

5.1. The Council’s policy and procedures with regard to recruitment of Chief Officers are set out as Guidance for the Recruitment of Chief Officers, which is within the overall framework of the existing recruitment and selection policy.

5.2. Accordingly the recruitment of Chief Officers is delegated to the Employment Panel whose functions include:

• The shortlisting and appointment of Chief Officers and Deputy Chief Officers (as defined by the Local Government and Housing Act 1989). The confirmation of appointment of all Chief Officers (with the exception of the Chief Executive/Head of Paid Service) is carried out in accordance with the Council Constitution – Officer Employment Procedure Rules and The Local Authorities (Standing Order) (England) Regulations 2001
• The shortlisting and appointment of the Chief Executive / Head of Paid Service is carried out in accordance with the Council Constitution for submission to the Council

5.3. When recruiting to all posts the Council will take full and proper account of all provisions of relevant employment law and its own Equality, Recruitment and Selection and Redeployment Policies.  

5.4. The determination of the remuneration to be offered to any newly appointed chief officer will be in accordance with the pay structure and relevant policies in place at the time of recruitment.

6.0. Additions to the salary of chief officers

6.1. The level of chief officer remuneration is not variable dependent upon the achievement of defined targets.

6.2. To meet specific operational requirements it may be necessary for an individual to temporarily take on additional duties to their identified role. The Council’s arrangements for authorising any additional remuneration [e.g. honoraria, ex gratia, ‘acting up’ payments] relating to temporary additional duties are set out in the Council’s Constitution and supplementary conditions of service.

6.3. The Chief Executive (Head of Paid Service), also carries out the duties of the Returning Officer in accordance with the Representation of The People Act 1983. The duties of the Returning Officer are separate from the duties undertaken as a local government officer; the office of Returning Officer is totally distinct from the office of Chief Executive and Head of Paid Service.

6.3.1 Payments due to the post holder in respect of the conduct of local municipal elections are consolidated within the salary.

6.3.2  Payments in respect of the conduct of National Government Elections, any National Referenda and Greater Manchester Mayoral elections are paid in addition to salary. These payments are pensionable and subject to deductions for tax and National Insurance. 

6.4. Set out in the table below are details of other elements of ‘additional pay’ currently payable to Chief Officers (as defined by the Local Government and Housing Act 1989) which are chargeable to UK Income Tax and do not solely constitute reimbursement of expenses incurred in the fulfillment of their duties:

7.0. Pension contributions

7.1. Where employees have exercised their statutory right to become members of the Local Government Pension Scheme, the Council is required to make a contribution to the scheme representing a percentage of the pensionable remuneration due under the contract of employment of that employee.

7.2. The Employer’s rate of contribution is set by Actuaries advising the Greater Manchester Pension Fund and reviewed on a triennial basis in order to ensure the scheme is appropriately funded.  The triennial valuation covers the period 1 April 2023 to 31 March 2026 following which the rate will be set for a further 3 years. The employer’s contribution rate from 1^st April 2024 is 19.5%. 

7.3. Pension contributions are based on actual pensionable pay and there are 9 different contribution banding rates between 2.75% and 6.25%. The bandings as at 1^st April 2024 are: 

The Council will be advised of any changes to contribution pay bands for 2025/26 in March 2025.

8.0. Payments on termination

8.1. The Council’s approach to statutory and discretionary payments on termination of employment of chief officers, prior to reaching normal retirement age, is in accordance with The Local Government Pension Scheme Regulations 2013,  Regulations 5 and 6 of the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations 2006 and the Statutory Guidance on the making and disclosure of Special Severance Payments (SSP’s) by Local Authorities in England, published on 12^th May 2022.

8.2. Any payments made will be in accordance with relevant employment legislation and the criteria set by the appropriate pension scheme (normally the Local Government Pension Scheme). Decisions will be made in line with the arrangements set out in the Council constitution.

8.3. Following the introduction of the Statutory Guidance on the making and disclosure of Special Severance Payments (SSP’s) by Local Authorities in England, a section around Special Severance Payments (SSP’s) has been added to the Officer Employment Procedure Rules outlining the revised arrangements for the approval of SSP’s: 

8.3.1. Any payments made in relation to the termination of employment which are in excess of £100k continue to require approval by full Council.

8.3.2. All payments of £20k and over in value, up to £100k, require approval from the Monitoring Officer, Section 151 Officer, Chief Executive and Leader, in Consultation with the Chair of Overview and Scrutiny.

8.3.3. Any payments under £20k can be approved by the Monitoring Officer.

8.3.4. Where the proposed payment is to the Head of Paid Service, to avoid a conflict of interest, the Employment Panel will oversee this and will appoint an independent panel comprising of 3 independent people (or at least 2) to approve the payment to the Chief Executive. The Independent Panel will make recommendations to the Employment Panel and the decision will then go to Council for approval.

8.4.  All payments will only be agreed in accordance with the Statutory Guidance on the making and disclosure of Special Severance Payments (SSP’s) by Local Authorities in England.

9.0. Lowest paid employees

9.1. The lowest paid persons employed under a contract of employment with the Council are employed on full time [37 hours per week] equivalent salaries in accordance with the minimum spinal column point currently in use within the Council’s grading structure.

9.2. The National Living Wage for people 23 and over is currently £11.44 per hour and will rise to £12.21 per hour for people aged 21 and over with effect from 1^st April 2025. The Real Living Wage rose to £12.60 per hour in October 2024 and the Council’s Real Living Wage supplements will be reintroduced to reflect this from 1^st April 2025 making our lowest pay rate with effect from 1^st April 2025, including this supplement for the Real Living Wage £12.60 (£24,309).

9.3. The relationship between the rate of pay for the lowest paid and chief officers is determined by the processes used for determining pay and grading structures as set out earlier in this policy statement. 

10.0. Pay multiple

10.1. The current pay levels (as at January 2025) within the Council define the multiple between:

• The median (the halfway point between the lowest and highest earner) full time equivalent (FTE) earnings for the whole of the workforce and the Chief Executive (top of pay spine) as 1:6.37. The difference in pay is lower than last year's reported figure of 1:76.88.
• The lowest paid earner full time equivalent (FTE) and the Chief Executive (top of pay spine) as 1:8.76. The difference in pay is lower than last year's reported figure of 1:9.09.

10.2. The pay multiple has been calculated in accordance with the LGA Local Transparency Guidance. Data relates to the 1^st January 2024 – 31^st December 2024.

10.3. 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. In addition, upon the annual review of this statement, the Council will also monitor any changes in the relevant ‘pay multiple’ and benchmark against other comparable local Authorities. 

11.0. Gender pay gap

11.1. The Council is required to take a ‘snapshot of data’ as at the 31 March 2024 and analyse this to calculate our gender pay gap. We are required to publish the data on the Council website (to remain for at least 3 years) and also on a government site, by 31^st March 2025 at the latest. The Gender Pay Gap is published annually.  

11.2. The gender pay gap reporting measures are:

Mean gender pay gap - The difference between the mean (average) hourly rate of pay of male full-pay relevant employees and that of female full-pay relevant employees

Median gender pay gap - The difference between the median (mid-point) hourly rate of pay of male full-pay relevant employees and that of female full-pay relevant employees

Mean bonus gap - The difference between the mean bonus pay paid to male relevant employees and that paid to female relevant employees

Median bonus gap - The difference between the median bonus pay paid to male relevant employees and that paid to female relevant employees

Bonus proportions - The proportions of male and female relevant employees who were paid bonus pay during the relevant period

Quartile pay bands - The proportions of male and female full-pay relevant employees in the lower, lower middle, upper middle and upper quartile pay bands

11.3. The Council’s Gender Pay Gap for 2023-2024 compared with 2022-2023 is shown below:

11.4. Bury Council does not pay any bonuses.

11.5. Quartile Pay Bands:

The following information shows the percentage of male employees and female in each quarter of the payroll for 2022/23 and 2023/24:

11.6. Comparison summary:

The gender pay gap has returned to a decreasing trend following a marginal increase last year (the only increase the council has seen since pay gap reporting began) with the mean gap decreasing by 2.74% against last year. Overall, there is a closing of the mean pay gap of 4.75% since the Council first reported on its gender pay gap in 2016/17.

As with the mean pay gap, this year also shows a reduction of the median gender pay gap to 0.00%. Overall there has been a 7.73% improvement since the Council first reported its gender pay gap in 2016/17.

National comparisons of the gender pay gap (Office of National Statistics) show Bury to be performing better than regional and national comparators:

It is important to point out that the National and Northwest figures reported in the table above are for full time employees only (staff working over 30 hours). Nationally the Gender Pay gap for all employees is 13.1%. If the Council were to use the same reporting parameters and excluded information for staff working below 30 hours from its calculations, it would have a mean pay gap of -4.06% and a median pay gap of -9.00%. (In comparison looking only at part-time employees would see a mean pay gap of 4.47% and a median pay gap of 5.46%. 

The overall pay gap for all employees is higher than it is for just full time employees because of the number of female staff compared to male staff filling part-time positions.

Deductions for salary sacrifice arrangements are excluded from an employee’s base pay for the purposes of gender pay gap reporting, creating an artificially lower rate of pay for those who opt to use salary sacrifices compared to those who do not. This is potentially a contributing factor to the widening of the pay gap this year especially with a workforce that 67.54% female.

11.7 Progress to date and future actions 

Over the past 12 months the Council has implemented several changes and initiatives that support all staff across characteristics and promote diversity and development within the workforce which, in turn, will support us in reducing our pay gaps. This work includes:

• Work to improve Council recruitment processes and remove potential barriers to employment, including a refreshed recruitment website that is more intuitive and user friendly and adopting flexible approaches to application and assessments
• On-going moderation of job grades whether new posts or regrades of existing roles to stop grade drift and ensure a consistency of approach in the application of the job evaluation scheme.
• Further promotion of the Council’s leadership development offer which reflects our commitment to supporting staff development and progression
• Becoming a White Ribbon accredited organisation and employer, confirming our commitment to advancing gender equality and women’s safety.
• The establishment of a Women’s Employee Group to provide a focus on women in the workplace, be a critical friend to the organization and support the advancement of gender equality at the Council.
• A refreshed equality strategy with a focus on representation and reducing barriers that affect our female employees in the workplace

11.8 The Council is committed to continuing to introduce measures to reduce the gender pay gap further over the next 12 months and will be continuing to build on the work noted above as well as progressing a number of further activities including:

• Developing business intelligence tools which allow more frequent exploration and monitoring employee data that affects pay gaps
• Delivering inclusive recruitment training to recruiting managers that will include a focus on advancing gender equality and removing gender bias in our recruitments
• Widening the authority’s approach to Workplace Adjustments so that these apply to all employees who need adjustments to support them to succeed in work
• Continued promotion of flexible working and the options available to employees to help them find a healthy work/life balance
• Having an intersectional approach to gender inclusion in recognition that multiple characteristics can amplify barriers and challenges for our female employees
• Developing improved career pathways for the many careers that are available at Bury Council. These will include entry level, supervisor level, management level and leadership level so that colleagues at all levels on the career pathway can easily see a clear path to support their career aspirations.
• Developing effective succession programmes which will identify and nurture talent and rising stars and target diverse employees for progression.

11.9    Whilst there is no legal obligation to do so, the Council also publishes information in relation to its Disability and Ethnicity pay gaps. This information is available on the Council website and updated annually as part of the Employment Equality Report. 

12.0. Accountability and decision making

12.1. In accordance with the Constitution of the Council, the Employment Panel is responsible for being a consultee on all terms and conditions including policies, and for the recruitment selection and appointment of Chief Officers; (see Section 5.0 above).

13.0. Re-employment or re-engagement of former chief officers

13.1. The Council’s Voluntary Exits Policy states that former employees (including Chief Officers) who leave the Council through any form of enhanced severance package, including but not exclusive to voluntary early retirement or flexible retirement will not be re-engaged in normal circumstances at any point and without the approval of the Director of People and Inclusion and Cabinet Member for HR and Corporate Affairs. This includes engagement via Agency or a contract for services. However, this provision excludes engagement to support the Local Authority’s role in relation to Elections.  

13.2. As a general principle the Council is opposed to re-employing retired employees. However, in exceptional circumstances, where it is considered necessary to re-employ or re-engage a former employee who is in receipt of a pension from the Local Government Pension Scheme:

(a) There should be clear evidence that the work cannot be undertaken by someone else, either internal, external or through agency staff.

(b) If the individual is engaged under the terms of a contract for services and claims to be self-employed or a consultant, the Executive Director of Finance must be satisfied that they meet the criteria laid down by HMRC.

(c) A former employee should not be re-engaged unless agreement has been given by the Cabinet Member for HR and Corporate Affairs.

13.3. The proposal to require high earners to repay exit payments if they return to the public sector has previously been consulted on but there has been no further indication of if and when this proposal will be implemented.  

14.0. Publication

This statement is published under Local Government Transparency Code requirements.

Appendix 1: NJC pay scale – Council employees

The salary scales below reflect the pay rates with effect from 1 April 2024 and the additional non-consolidated supplements to be applied from 1 April 2025. The pay scale will be revised to reflect the 2025/26 NJC Pay Award once agreed.

 

Appendix 2: Chief Officer pay scale

The salary scales below reflect the pay rates with effect from 1 April 2024. The pay scale will be revised to reflect the 2025/26 Pay Award once agreed