PAY16 - THE ARMED FORCES PAY MODEL Pay16 NEMThe Armed Quick Forces Pay Model Reference Guide For those in command Your Service, Your Career, Your Life-Style. Revised 30 March 2016 1 PAY16 - THE ARMED FORCES PAY MODEL PAY16 - THE ARMED FORCES PAY MODEL Foreword has required some difficult decisions. Defence has recognised the need to protect those whose pay might It is important that the “offer” we make to our Service otherwise decrease immediately on transition to the men and women is sufficiently attractive to recruit new model; additional investment has therefore been and retain the right people to deliver our operational allocated to provide pay protection for at least 3 years. In capability. While that offer is very broad, it is no the long term, the through-career pay for approximately surprise that pay is a key element, and an important two thirds of Other Ranks will either increase or remain consideration for Service personnel, their families, and broadly the same relative to Pay2000. for Defence as a whole. The pay rates in this booklet include the 1% pay rise Over the years, Service personnel have highlighted with effect 1 April 16, as recommended by the AFPRB concerns with the previous pay model (Pay2000) to the and accepted by the Government, applied in advance of Armed Forces Pay Review Body (AFPRB). The pay model the transition to Pay16. for Other Ranks and for Officers up to and including This booklet is concise, informative, and is designed to 1 Star (Commodore / Brigadier / Air Commodore) has be read by every Service man and woman. It is not just therefore been updated with the introduction of Pay16 for the HR specialist. I commend it to you. n on 1 Apr 16. General Sir Nicholas Houghton What will Pay16 look like? Chief of the Defence Staff Defence staff have worked with the Service Chiefs to establish a new pay model that addresses Service personnel’s concerns whilst continuing to meet the needs of the Armed Forces. The new pay model, called Pay16, was also discussed during the recent Strategic Defence and Security Review; it was agreed that the military pay model would be protected, that existing pay resources would be rebalanced and that it would not become a savings exercise. Rank continues to be the primary determinant of pay; incremental progression has been maintained. In addition Other Ranks will receive a trade-related supplement to pay, with placement in Supplements based on extensive Job Evaluation evidence. This will provide a pay model that is simpler and more transparent than Pay2000, is able better to target pay, and is more efficient. It also addresses key areas of Other Ranks’ dissatisfaction with the Pay2000, including elements known as ‘flip flop’, ‘pay overtaking’, and ‘overlap’, the details of which are described in this booklet. Retargeting resources within the pay structure 2 3 PAY16 - THE ARMED FORCES PAY MODEL PAY16 - THE ARMED FORCES PAY MODEL Contents Annexes Foreword 2 A Trade Supplement Placement Tables 18 What is this booklet for? 6 B Management Discretion 24 C The Job Evaluation Process Explained 26 Who is Affected? 6 D Incremental Progression Steps – Other Ranks 30 What is Changing? 6 E Incremental Progression Steps – Officers 38 F Other Ranks’ Pay Rates 2016/17 (incl FTRS Full Commitment) 40 Why are We Changing Your Pay? 7 G Officers Pay Rates 2016/17 (incl FTRS Full Commitment) 42 Pay16 - The New Pay Model 7/8 H Bespoke Pay Rates 2016/17 (with Incremental Progression mirroring Pay16) 44 Pay Rates 10 • Other Ranks Pay Scales Transition Arrangements 10/11 - Special Forces How Does Transition Work 10/11 - Nurses - Royal Navy Clearance Divers Calculating Your New Pay 12 - Military Provost Guard Service What happens to your pay on promotion 12 Reserve Service 13 • Officers & Nursing Officer Pay Rates What happens if I transfer to another Service 13 I FTRS Home Commitment Pay Rates 2016/17 53 or from the Regulars to the Reserves? What happens if a Reserve contract 13 • Other Ranks Pay Scales ends during the period of pay protection? - Special Forces - Nurses The Annual Pay Awards? 13 - Officers & Nursing Officer Pay Rates What will happen to your pension? 13/14 Can the pension’s calculator be used to 14 J FTRS Limited Commitment Pay Rates 2016/17 63 forecast the impact of pay on your pension? 14 • Other Ranks Pay Scales Will there be a future review of trade placements to Supplements? 14 - Special Forces - Nurses Where can I get further information? 14 Glossary of terms 15/16 • Officers & Nursing Officer Pay Rates K Pay16 Calculation Template - Other Ranks 73 4 5 PAY16 - THE ARMED FORCES PAY MODEL PAY16 - THE ARMED FORCES PAY MODEL What Is This Booklet For? incremental structures of the ranges and Conditions of Service for Service Service Personnel have been adjusted to mirror those of personnel. Pay16 provides a system of Remuneration Package This booklet is a guide to the new pay the main pay tables. pay that is simpler and more transparent, model, called Pay16, which will be making it far easier for an individual introduced on 1 Apr 16. It replaces the • It will not apply to personnel paid Allowances to understand their likely pay journey Armed Forces Pay Reform Booklet1 which from the following pay spines: the (Enduring or temporary) through their career. It is able to target provided an initial outline of the changes Professional Aviators’; Medical and (Non Pensionable) specific trades, and is therefore an aid and used indicative pay rates. This booklet Dental Officers’; Chaplains’; Veterinary to retention. It will address key areas has 3 key purposes: Officers’; and Late Entry Officers/Officer of Other Ranks’ dissatisfaction with the Targeted Additional Reward Commissioned from the Ranks. current pay model. (One off: Financial Retention • To provide information about the new Incentives (FRIs), Golden Hellos (GHs) pay structure and changes to core pay What is Changing? (Non Pensionable) Issues with Pay2000 that will be introduced as part of NEM on 1 Apr 16. Pay16 applies to basic pay. The table • Flip-Flop - where individuals move on page 7 shows how pay is the basis Targeted Additional Reward between pay bands when promoting, • To explain ‘transition’ i.e. how you of the military salary onto which other (Enduring recruitment and resulting in them often having to be will be transferred from the current ‘layers’ of non-pensionable remuneration Retention payments) placed on a Stand Still Rate of Pay pay model (Pay2000) to the Pay16 are added. (Non Pensionable) or on an incremental level that does pay structure. Pay is principally determined by rank. not match their seniority, reducing It provides the majority of salary and the number of increments available • To be used as a reference guide to is the basis for calculating pension Annual Salary to them. explain how the new pay structure entitlement. Allowances, and Core Salary (Based on Rank) + works and how you will move through Recruitment and Retention Payments Trade Supplement Rate (Other Ranks • Overtaking - whereby individuals the new pay structure. are unaffected by Pay 16. n only) + X-Factor overtake other Service personnel (Pensionable) within the same trade and rank who Who is Affected? were promoted earlier, and who have more experience within that rank. • Pay16 will apply to all Regular and Why Are We Changing Reserve personnel on the Main Pay Your Pay? • Overlap - where an individual on the Spines up to and including the rank upper Increment Level for their rank of OF6 (Commodore / Brigadier / It is important that we have an might have the same, or a greater level Air Commodore). employment model which meets the of pay, than a colleague in the same expectations of the new generation of trade in the next higher rank. • Special Forces, Nurses, Royal Navy Service personnel and allows Defence Clearance Divers, and the Military to recruit the right mix of capable Pay16 – The New Pay Model Provost Guard Service will continue people whilst meeting its operational to have bespoke pay spines 2 but the commitments. Pay16 has not been designed to reduce The NEM programme was established the overall pay bill, rather it redistributes 1 Issued in DIB2016/01 on 7 Jan 16. as a vehicle to develop this modernised the pay bill to provide a more effective 2 Some specialist groups have separate (Pensionable) pay structures, known as Bespoke Pay Spines. “offer”, by reviewing the current Terms and efficient pay model. X-Factor remains 6 7 PAY16 - THE ARMED FORCES PAY MODEL PAY16 - THE ARMED FORCES PAY MODEL unchanged at the Government approved The Supplement will apply at all The first 5 factors used to determine As part of the simplification of pay rates recommended by the AFPRB. ranks within a trade, providing greater JE scores are widely used and recognised some Services have also simplified trade Incremental Progression will be transparency of the pay structure and by industry; Factor 6 is slightly different structures; full listings of trades including retained, though the number of will enable people to better predict, and in that it is designed to reflect the legacy trade titles have been published Increment Levels is reduced for most understand, their through career pay often unique environments within by the relevant Service. ranks. ‘journey’. which Service personnel operate. More The proportion of pay allocated to From April 16, all hard copy pay information on the JE process can be Incremental Progression each rank range in Pay2000 has been statements will include, in the Payroll found at Annex C. Due to the base fed nature of the Services broadly maintained within Pay16. This Information section, information on how where individuals progress through the ensures that one rank range is not your annual pay is calculated and will How are Trades allocated ranks, Incremental Progression will remain advantaged at the expense of another: i.e.