The Welsh government has confirmed a 5.5% pay increase for NHS Wales staff on Agenda for Change on the 10/10/2024, fully accepting the recommendations from the independent pay review body.
This announcement comes after weeks of anticipation, as the UK government has confirmed pay rise for NHS England staff in September 2024. Andrew RT Davies, Leader of the Welsh Conservatives in the Senedd, said: “It is clearly in the UK’s national interest to bring these strikes to an end, yet Labour ministers in the Senedd allowed them to drag on. Unlike Labour, Welsh Conservatives will never prioritise vanity projects that take attention away from vital public services.”
The 5.5% increase is a pay award, not an offer, meaning that staff across all bands in NHS Wales will see this increase in their pay packets later this year. The award will be backdated to April 1, 2024, and applies to all pay points. For more details, you can read pay rise break down for different bands.
Backpay is subject to income tax and National Insurance contributions, just like regular salary payments. It is added to their earnings for the relevant pay period, which could push them into a higher tax band depending on the amount. The backpay is taxed at the individual’s usual income tax rate, which is based on their total earnings for the tax year. If the backpay is significant, it may be taxed at a higher rate in the period it is received, although any overpaid tax can be reclaimed through adjustments in future pay periods via a tax code change.
Along with the pay rise, the Welsh government has confirmed the introduction of additional intermediate pay points for Agenda for Change Bands 8a and above after two years.
The current pay structure for these bands only includes two pay points, with a five-year period to reach the second point. By adding an additional point after two years, this change will align these bands with others of similar length.
This adjustment has been a key demand from the CSP and other unions, aiming to address a long-standing issue and promote clearer career progression. This is particularly important between bands 7 and 8a, where the increase in responsibility is often substantial, but the pay rise is minimal, followed by a lengthy five-year wait before reaching the next and final point. This change is a positive step toward addressing this disparity.
Junior doctors will receive an extra £1,000, while other public sector employees, including those at Natural Resources Wales and the Development Bank of Wales, will see an average pay increase of 5%.
The Welsh government primarily relies on funding from Westminster, and officials are confident that additional financial support for pay increases in England will prevent cuts to funding in other areas.
NHS workers also has very generous pension contributions and other benefits, such as NHS Staff discounted bus fare scheme.
