Purpose and Scope of the Policy

Section 38 (1) of the Localism Act 2011 requires the Council to prepare an Annual Pay Policy Statement for 2022/23 and subsequent years.

Prior to the enactment of this legislation the Council has adopted an open approach to senior officer pay - publishing salary details of Managing Director and Heads of Service on the Teignbridge website.

In dealing with staff pay it is the Council’s strategy to ensure that our reward systems (pay and benefits) facilitate the recruitment and retention of staff with the skills and capabilities the Council needs.

Arrangements for staff pay must comply with legislation in delivering Equal Pay and should avoid being unnecessarily generous or otherwise excessive.

This Pay Policy applies to Chief Officers and addresses the legal requirement to set out how pay is determined for this group. The definition of Chief Officer includes the following posts at Teignbridge:

• Managing Director
• Head of Corporate Services
• Head of Service Delivery and Improvement
• Head of Place and Commercial Services
• Head of Operational Services
• Business & Service Managers
• Chief Finance Officer (Section 151 Officer)
• Monitoring Officer

Other management posts that may be authorised in the future by the Executive; where the post reports to the Managing Director, or to a manager who reports to the Managing Director.

The term ‘Chief Officers’ is used throughout this policy and applies to all posts listed above.

Guidance from the Secretary of State makes reference to the Hutton Review of Fair Pay. This indicated that the most appropriate metric for pay dispersion is the multiple of chief executive pay to median earnings. Tracking this multiple will allow the Council to ensure that public services are accountable for the relationship between top pay and that paid to the wider workforce. The annual pay policy statement will compare basic pay levels and record this multiple each year along with the following information:

The level and elements of remuneration for each chief officer post

The remuneration of the lowest paid adult employee

Arrangements for Chief Officer Pay

The general terms and conditions of employment are governed by the following national agreements:

Chief Executive – Joint Negotiating Committee (JNC) for Chief Executives of Local Authorities,

Deputy Chief Executive and Business Leads - JNC for Chief Officers of Local Authorities,

Business Managers and the other management posts who report to the Chief Executive, or to a manager who reports to the Chief Executive – National Joint Council (NJC) for Local Government Services

In determining the salary scale for the Managing Director post the Leader will take independent advice. The Leader will make recommendations which will be subject to the approval of the Full Council.

The remuneration package payable to the Managing Director may be reviewed from time to time. Any changes in the remuneration package will be subject to Full Council approval.

The salary scale for the Senior Leadership Team (SLT) is set using the Local Government Association Senior Officer Job Evaluation Scheme. The scheme provides a points score for each post. Points scores for SLT are set out in appendix 1 of this policy.

All other salary scales are set using the Hay Job Evaluation scheme, which produces a points score for each post. The salary scale that corresponds to points scores for non SLT posts are set out in Appendix 1 of this policy.

Following significant changes in duties, posts will be re-evaluated. The evaluation will be based on a Job Evaluation Questionnaire which will be authorised by the Managing Director. This may result in a change to the salary payable.

Salary increases in relation to cost of living will be applied according to the awards made by the appropriate NJC as described in paragraph 2.1.

No additional payments are made to any Chief Officer in respect of:

• Bonus payments
• Performance payments
• Market forces supplements

Additional payments are made to Chief Officers who carry out duties at elections; these payments are calculated according to the approved scale or set by a government department - depending on the nature of the election.

In comparing Chief Officer pay with the wider workforce the Council will use the following definitions:

The lowest-paid employee: the employee or group of employees with the lowest rate of pay (full-time equivalent) employed by the Council at the date of assessment. This includes all permanent employees who meet the criteria of the Adult National Minimum Wage (age 21 and over) or the Compulsory Living Wage (age 25 or over).

The median: the mid-point salary when full-time equivalent salaries are arranged in order of size (highest to lowest). Based on salary levels of staff on the date of assessment. This includes all permanent employees who meet the criteria of the Adult National Minimum Wage (age 21 and over).

For new appointments to Chief Officer posts the starting salary will normally be the bottom point of the salary scale. In exceptional circumstances there may be grounds that warrant a higher starting salary within the salary scale for the post - in the case of the Managing Director that will be a decision approved by Full Council, for all other Chief Officer posts the decision will be made by the Managing Director in consultation with the Leader and Portfolio Holder.

Any termination payment made to Chief Officers will be in accordance with the relevant policy within the local conditions of service, i.e. redundancy policy, early retirement policy.

Recruitment and selection procedures involve selecting the best applicant by reference to the Person Specification. A Chief Officer who has left the employment of the Council through redundancy, retirement or any other circumstance which involves the payment of a severance or termination payment will not be re-employed by the Council without the approval of the Managing Director in consultation with the relevant Executive Portfolio Holder. This provision will also apply to re-engagement under a contract for service.

Publication

Once approved by Full Council, this Policy and any subsequent amendment will be published on the Council’s website.

In accordance with the Code of Practice on Local Authority Accounting the annual Statement of Accounts includes pay details of Senior Officers reporting directly to the Managing Director and statutory posts whose salary is between £50,000 and £150,000 per year.

Appendix 1 - Job Evaluation: How points relate to Salary

Chief Officers – SLT level: 1200 – 1950+ points

Points Range	Salary1
1200 – 1950+	£76,830 - £119,937

Chief Officers CMT Level: 571 - 634 points

Points Range	Salary2
571 - 634	£50,496 - £68,067

All other Chief Officers below CMT level: Below 536 points (upper range)

Points Range			Pay Scale	SCP	Salary Scale3
392	-	404	34	33 - 35	£37,568  -  £39,571
405	-	417	35	34 - 36	£38,553  -  £40,578
418	-	430	35A	35 - 37	£39,571  -  £41,591
431	-	442	35B	36 - 38	£40,578  -  £42,614
443	-	456	36	37 - 39	£41,591  -  £43,570
457	-	470	37	38 – 40	£42,614  -  £44,624
471	-	484	38	39 - 41	£43,570  -  £45,648
485	-	500	38A	40 - 42	£44,624  -  £46,662
501	-	516	39	41 - 43	£45,648  -  £47,665
517	-	519	40	42 - 44	£46,662  -  £48,617
520	-	535	41	43 - 45	£47,665  -  £49,593

Appendix 2 

Current remuneration and allowances for each Chief Officer post whose salary is between £50,000 and £150,000 per year 

Post Title	Salary Scale4	Allowances & Benefits
Managing Director	£112,635 to £119,937	E.U. Car Allowance*
Head of Corporate Services	£83,643 to £89,913
Head of Community Services and Improvement  Head of Operational Services  Head of Place and Commercial Services	£76,830 to £82,596
Monitoring Officer	£61,263 to £68,067
HR & OD Manager	£56,076 to £62,304
Business Managers   Assets  Development Management  Spatial Planning	£55,686 to £61,866
Service Manager  Waste  Leisure   Building Control  Revenues, Benefits & Customer Support  Audit  Environmental Health	£53,478 to £59,418    £52,692 to £58,544      £50,496 to £56,100	E.U. Car Allowance*

* Essential User (E.U.) Car Allowance consists of a set monthly payment at the rate of £846 p.a. or £963 p.a. depending on the vehicle cc.  Additional payments are made according to the number of miles travelled.  Officers who do not receive the essential user allowance are paid 46.9p per mile when they use their car for business mileage.

The remuneration of the lowest paid employee (full-time equivalent)

Basic Pay (fte)5	Other Allowances (fte)	Pay multiple of Managing Director to lowest paid
£18,333 p.a.	£0	6.14 – 6.54

Date of assessment: 23 February 2022

The median pay for all staff

Basic Pay (fte)	Other Allowances (fte)	Pay multiple of Managing Director to median
£23,953 p.a.	£0	4.70 – 5.01

Date of assessment: 23 February 2022