Date: 07 Jan 16 / Released by: M&C
NEW EMPLOYMENT MODEL (NEM) – ARMED FORCES PAY REFORM
ISSUE
Armed Forces Pay Reform.
TARGET AUDIENCE
All Regular and Reserve personnel up to 1*, except those serving on bespoke pay spines[1].
KEY POINTS
· MOD has announced the introduction of a new pay model for the Armed Forces with effect from 1 April 2016.
· Pay Reform rebalances current pay resources to provide a simpler and more efficient core pay model which provides greater differentiation for Other Ranks (ORs). It is not a savings exercise.
· The new pay structure has been developed with the Services and is advocated by the CAS.
· The new model will apply to all Regular and Reserve personnel up to 1*, except those serving on bespoke pay spines1.
· Incremental Progression has been retained but the new model will rationalise the incremental pay structure for all ranks.
· For ORs, the new pay model will:
o Continue to use rank as the main factor in determining the rate of core pay;
o Remove the current High/Low pay band structure; and
o Move to a single core pay spine, with 4 supplements.
o The allocation of Trades to a supplement is informed by Job Evaluation (JE) evidence and applied on a through career basis.
· No one will take a pay cut on the introduction of the new pay model. Pay protection will be in place for at least 3 years, with a review after the first year to consider whether it should be extended beyond the 3 year period.
· Rates of pay will continue to be recommended by the Armed Forces Pay Review Body.
· A Defence Internal Brief (DIB), pay booklet, NEM Snapshot and video explain the new pay model and the transition process.
· OC BSWs and NEM Champions will be briefed in detail on 13 Jan 16 and will provide local briefings to their personnel.
BACKGROUND
1. The NEM Pay Model is designed to address dissatisfaction with the Pay 2000 model, making it simpler to understand and providing personnel with the ability to predict more accurately their future earnings. The changes focus on basic pay[2] only, are detailed in the DIB, Pay Booklet and are highlighted in the latest NEM Snapshot and video.
2. The new model has not been designed to reduce the overall pay bill; resources have been rebalanced to provide a more differentiated and effective model. In rationalising the incremental pay structure and designing the 4 supplements for ORs, the resource allocated to each rank range in Pay 2000 has been maintained; in other words all personnel can be reassured that under NEM, no pay value has been transferred between one rank range and another.
3. Rank continues to be the sole factor in determining how much officers are paid and the main factor in determining how much ORs are paid. The pay model will have a single core pay spine (with 4 pay supplements for ORs only). The allocation of trades to supplements was agreed collectively by the single Services. The new pay rates will depend upon an individual’s current pay, rank and their trade placement into one of the 4 pay supplements, known as Trade Supplement Placement. Each trade is allocated to a supplement on a through career basis; the decision was based on JE evidence, as assessed by the Joint Service JE Team. The through career approach means that personnel will no longer be affected by flip-flopping between pay bands on promotion, overtaking of colleagues of the same rank and pay overlap whereby personnel of a higher rank are paid less than their juniors.
4. Incremental Progression remains a key feature of the pay model. The number of increments will be rationalised for all ranks up to 1*, with those newly promoted remaining on the first increment level for 2 years.
5. Transition to the new pay model will affect people in different ways. No one will take a pay cut on the introduction of the new model. Those personnel who benefit from a pay increase will receive the gains immediately, while Pay Protection will apply to those who would otherwise receive a reduction. Under Pay Protection, an individual will either maintain their current rate of pay or transition to the nearest rate above their current pay level, where they will remain (retaining eligibility for any Annual Pay Awards) until they are promoted or accrue seniority to move to a higher increment level. Pay Protection will remain in place for at least 3 years; it will be reviewed after the first year to consider whether it should be extended beyond the 3 year period.
6. Detailed information on the new pay model can be found in the Armed Forces Pay Reform booklet . The booklet explains the principles of pay reform and includes example pay scales based on the current (15/16) pay rates to provide personnel with an indication as to how their pay will be affected. The actual rates of pay for 1 Apr 16 will not be available until the Government has announced its decision on the AFPRB pay recommendations for April 2016. Updated pay rates will be published prior to the introduction of the new pay model. The RAF NEM Intranet Site contains full details of Pay Reform.
7. OC BSWs and NEM Champions will be briefed in detail on 13 Jan 16 and will then provide local briefings to their personnel.
ADDITIONAL INFORMATION
8. Local NEM Champions should be the first point of contact for personnel with queries about the new pay model; if they are unable to address the query, they will consult SO2 RAF Pay Policy on 9621 89361.
[1] It will not apply to personnel paid from the Professional Aviators’, Medical and Dental Officers’, Chaplains’ and Veterinary Officers’ bespoke pay spines. Nurses, RN Clearance Divers, Special Forces and Military Provost Guard Service will continue to have bespoke pay spines but their incremental pay structures have been adjusted to mirror those of the main pay tables.
[2] Recruitment and Retention Payments and other payments such as Financial Incentives and Commitment Bonuses are not part of NEM pay reform. X-Factor will continue to be paid at the same percentage rate.