Breakdown by pay band (2024)

Article

See how the three-year deal changes impacted each pay band.

Agenda for change

8 June 2020

Breakdown by pay band (5)

The 2018 contract for staff under the NHS terms and conditions of service made changes that are applicable to all bands and some that are band specific. Find out more about specific changes to each pay band under the deal.

The agreement contains some changes that are universal to all bands, for example, removal of pay band overlaps, higher starting pay, fewer pay points, and a new progression system.

This page gives some more information on changes specific to certain pay bands.

Band 1 - 3

Key changes include:

  • Band 1 to be closed to new entrants from the 01 December 2018.
  • Upskilling of current band 1 roles to band 2 roles to be completed by 31 March 2021.
  • Those unable or unwilling to move into new band 2 roles to be able to remain in their current band 1 role.
  • Band 1 to become a single spot salary.
  • Band 2 and band 3 will have two step points and take a minimum of two years to progress to the top of their band.
  • The minimum pay rate for the NHS will be above the Living Wage Foundation living wage rate as of November 2017.
  • Those existing staff earning £18,160 or less to retain their unsocial hours payments whilst off sick.
  • For the next three years the unsocial hours percentage rates will be adjusted to reflect the increase in basic salary, while preserving the value of the current payment tiers.

Bands 4 – 7

Key changes include:

  • Shorter periods to progress to the top of the pay band:
    • Band 4 will have two step points and take a minimum of three years to progress to the top of the band.
    • Band 5 will have three step points, taking a minimum of two years to progress from the entry step point to the mid step point and then a further minimum of two years to progress to the top of the band.
    • Band 6 and band 7 will have three step points, taking a minimum of two years to progress from the entry step point to the mid step point and then a further minimum of three years to progress to the top of the band.
  • No specific changes to the terms and conditions for bands 4 to 7.

Bands 8a – 9

Key changes include:

  • Bands 8 and band 9 will have two step points taking a minimum of five years to progress from the entry step point to the top of the band.
  • For band 8C, 8D and band 9, the top step point will have a 5 to 10 per cent of their basic salary annually re-earnable, subject to meeting performance requirements.
  • Those staff with reserved rights from the NHS Terms and Conditions 2013 changes will continue to receive protection on a marked time basis.
  • Pay increase for those on band 8D and band 9 will be capped at the increase for those on the top step point in band 8C.
Contact
Agenda for change
Theme
Pay, pensions and reward
Keywords
Agenda for change 2018 contract refresh NHS terms and conditions Pay bands NHS staff council

Publisher
NHS Employers

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Breakdown by pay band (2024)

FAQs

How to structure pay bands? ›

How to Establish Salary Ranges
  1. Step 1: Determine the Organization's Compensation Philosophy. ...
  2. Step 2: Conduct a Job Analysis. ...
  3. Step 3: Group into Job Families. ...
  4. Step 4: Rank Positions Using a Job Evaluation Method. ...
  5. Step 5: Conduct Market Research. ...
  6. Step 6: Create Job Grades. ...
  7. Step 7: Create a Salary Range Based on Research.

How are pay bands calculated? ›

Salary bands are calculated by analyzing job evaluations, market pay rates, and the organization's compensation strategy. This involves assessing the relative value of each role within the company and its competitive market rate, considering factors like required qualifications, experience, and skills.

What are the levels of employee band? ›

Pay band first ranges from 5200 to 20,200. Second ranges from 9300 to 34,800. Pay band 3 ranges from 15,600 to 39,100 and fourth ranges from 37,400 to 67,000. Pay band 5 ranges from 67,000 to 90,000.

What is the meaning of pay band 3? ›

Band 3 salary means the salary which applies to teachers who are accredited at the level of Highly Accomplished. A Band 3 teacher has demonstrated the National Professional Teaching Standards at the Highly Accomplished level and has been accredited as such by a Teacher Accreditation Authority.

How to design a pay structure? ›

How to build pay grades and salary ranges
  1. Determine your compensation goals. ...
  2. Evaluate each position. ...
  3. Collect compensation data. ...
  4. Choose benchmark positions. ...
  5. Set up job levels. ...
  6. Calculate salary ranges. ...
  7. Implement and assess your pay grade structure.

How to set up salary band? ›

Building effective salary bands involves:
  1. Carefully delineating job roles and responsibilities.
  2. Conducting comprehensive market research to remain competitive.
  3. Conducting a thorough job evaluation to ascertain the worth of each role.
  4. Balancing internal and external factors to ensure the salary bands are fair and equitable.
Apr 26, 2024

How are bands calculated? ›

The Overall Band Score is the average of the four component scores, rounded to the nearest whole or half band. The component scores are weighted equally. If the average of the four components ends in . 25, the Overall Band Score is rounded up to the next half band, and if it ends in .

What is the difference between a salary range and a pay band? ›

While a pay range is specific to a job and its requirements, a salary band is a broader categorization used to group similar jobs or levels of job responsibilities. Pay ranges fit within salary bands, and together, they form a part of an organization's compensation strategy.

What is a band 7 salary? ›

Pay scales for 2022/23
Band 1*£20,270
Band 6£33,706£35,572
Band 7£41,659£43,806
Entry step pointTop step point
Band 8a£48,526**£54,619
13 more rows

What is the pay scale? ›

A pay scale (also known as a salary structure) is a system that determines how much an employee is to be paid as a wage or salary, based on one or more factors such as the employee's level, rank or status within the employer's organization, the length of time that the employee has been employed, and the difficulty of ...

What are the 3 levels of band? ›

For example, in many U.S. high schools, "Concert Band" refers to the introductory level band, "Symphonic Band" is the title for the intermediate level band, and "Wind Ensemble" is the title for the advanced level band.

Why do pay bands overlap? ›

Pay Bands usually overlap to enable employees to get compensation increases without necessarily getting promoted to the next level. This gives managers more flexibility to retain and reward employees.

What is an example of a pay band? ›

Also called salary ranges, pay bands include the minimum and maximum amount of money the company can afford to dedicate to compensation. For example, a technology startup may institute a pay band of $75,000 to $90,000 for a computer hardware engineer position.

What is band 2 pay? ›

Band 2 - 1st pay point

This is £1,773.58 a month before deductions. A person on this NHS pay point has to pay £72.56 a month of National Insurance, £115.28 a month NHS Pension contributions (from 1st April 2024) and £122.16 a month Income Tax.

What is band 6 pay? ›

Band 6 - 1st pay point

This is £2,949.25 a month before deductions. A person on this NHS pay point has to pay £190.13 a month of National Insurance, £289.03 a month NHS Pension contributions (from 1st April 2024) and £322.54 a month Income Tax. This makes their net (take home) pay £2,147.55 a month.

How much should pay bands overlap? ›

Salary Range Overlap

In the second example, a 50-60% overlap is moderate. This should be the goal of a typical salary structure.

How do you calculate pay band percentage? ›

To calculate the salary range percentile, subtract the lowest salary in the range from the specific salary. Then subtract the lowest salary from the highest salary in the range. Divide the first result by the second result, and multiply the quotient by 100 to get the percentile.

How do you structure pay raises? ›

  1. Best practices in salary increases.
  2. Be transparent about your budget.
  3. Offer bonuses instead of base rate increases.
  4. Take cues from competitors.
  5. Keep raises consistent.
  6. Establish clear criteria.
  7. Bargain with better benefits.
  8. Where and when to issue raises.

Can you negotiate salary bands? ›

Most job advertisem*nts, especially in the private sector, say something like “competitive salary” which gives nothing away if you don't know what the competition pays, either. Public sector jobs are more likely to have a pay scale with 'bands' for each job and level, but there's often room for negotiation here, too.

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