Sophie RobinsonNHS Scotland Agenda for Change Pay Settlement 2025–2027: A Complete Guide for Workers
The NHS Scotland Agenda for Change (AfC) Pay Settlement 2025–2027 is a landmark two-year collective pay agreement covering approximately 170,000 NHS Scotland employees. Agreed on 16 May 2025 and backdated to 1 April 2025, it is the product of negotiations between the Scottish Government Health Workforce Division and seven recognised trade unions: UNISON, the Royal College of Nursing (RCN), Unite, GMB, BMA Scotland, and the Royal College of Midwives (RCM).
Backed by a £701 million commitment from the Scottish Government, the deal was put to a ballot of union members and accepted in May 2025, with pay arrears issued in June 2025. It governs pay uplifts, working hours, annual leave, redundancy provisions, notice periods, and pension contributions for the bulk of the NHS Scotland workforce through to 31 March 2027.
What Is the NHS Scotland Agenda for Change Settlement?
The Agenda for Change framework is the pay and grading system used across NHS Scotland. It places every non-medical, non-dental NHS role into one of nine pay bands based on the Knowledge and Skills Framework, with each band containing a series of spine points through which employees progress annually. The settlement covers nurses, midwives, paramedics, allied health professionals (AHPs), healthcare support workers, administrative staff, porters, and a wide range of other AfC roles across all NHS Scotland Health Boards.
Union recognition for collective bargaining purposes is established and protected under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA 1992), giving the negotiated outcome the status of a collectively agreed term incorporated into individual contracts of employment.
Pay Award 2025–2027
The settlement delivers a guaranteed two-year pay award applied uniformly to all spine points across all AfC bands:
| Year | Pay Uplift | Effective Date |
|---|---|---|
| Year 1 – 2025–26 | 4.25% | 1 April 2025 |
| Year 2 – 2026–27 | 3.75% | 1 April 2026 |
Applied in sequence, the two annual uplifts produce a cumulative increase of 8.16% over the life of the agreement.
The 'Real-Terms Plus' Inflation Guarantee
The most structurally significant feature of this settlement is its built-in inflation protection clause. Under the agreement, each annual pay increase must exceed the average Consumer Price Index (CPI) figure for the same period by at least one percentage point. If CPI in any given year were to come in higher than forecast, the pay award would be uplifted automatically to maintain a minimum real-terms gain above inflation.
This guarantee — described by Health Secretary Neil Gray as helping to "ensure Scotland's nurses, midwives and NHS staff have the best reward package in the UK" — marks a meaningful structural departure from the pattern of below-inflation settlements that drove widespread industrial action across UK health services in 2022 and 2023.
Pay Bands and Salary Context
Indicative roles by Agenda for Change band:
- Bands 2–3: Healthcare support workers, pharmacy assistants, administrative and clerical staff
- Band 4: Associate practitioners, senior administrative officers, therapy support workers
- Band 5: Newly qualified registered nurses, midwives, paramedics, physiotherapists, occupational therapists, radiographers
- Band 6: Specialist nurses, senior AHPs, senior midwives, team leaders
- Band 7: Advanced practitioners, ward managers, consultant AHPs, specialist midwives
- Bands 8a–8d: Senior managers, consultant practitioners, directorate leads
- Band 9: Executive-level NHS professionals
The 4.25% Year 1 uplift and 3.75% Year 2 uplift apply to every spine point within each band. To calculate your exact salary for 2025–26 or 2026–27, see the companion interactive tool below.
Interactive Calculator Use our NHS Scotland Agenda for Change Pay & Rights Calculator to estimate your pay for both years of the settlement, your redundancy entitlement, annual leave total, and pension contributions under this agreement.
Working Hours and Annual Leave
Full-time NHS Scotland AfC employees are contracted to work 37.5 hours per week. This is partially offset by annual leave entitlements that substantially exceed the 28-day statutory minimum (inclusive of bank holidays) set by the Working Time Regulations 1998 (WTR 1998).
Annual Leave by Length of Service
| Length of Service | Contractual Leave | UK Bank Holidays | Total |
|---|---|---|---|
| Up to 5 years | 27 days | 8 days | 35 days |
| 5 to 10 years | 29 days | 8 days | 37 days |
| 10 years or more | 33 days | 8 days | 41 days |
The statutory floor under WTR 1998 is 28 days inclusive of bank holidays. NHS Scotland AfC staff receive between 7 and 13 additional days above that minimum, with the maximum entitlement for long-serving employees reaching 41 days — almost 47% above the legal minimum.
Under WTR 1998, employees must be permitted to take their statutory leave in the leave year in which it accrues; any contractual leave beyond this may be subject to different carry-over rules agreed locally with your Health Board.
Working Hours Reduction
NHS Scotland is also progressing a phased reduction of 1.5 hours in the standard working week for AfC staff, a commitment made in the 2023–24 pay deal. The RCN has called for full implementation by 1 April 2026 as part of ongoing discussions on AfC terms and conditions reform.
Redundancy Pay
Should an NHS Scotland AfC employee face redundancy, the Agenda for Change framework and NHS Scotland's Workforce Policies operate alongside — and above — the statutory protections in the Employment Rights Act 1996 (ERA 1996).
Statutory Formula (ERA 1996)
Under ERA 1996, the statutory redundancy calculation is:
- 0.5 week's pay for each full year of service while aged under 22
- 1 week's pay for each full year of service while aged 22 to 40
- 1.5 weeks' pay for each full year of service while aged 41 or over
The weekly pay used in this calculation is capped at £700 (the 2026 statutory cap). Maximum reckonable service is 20 years, giving a maximum statutory redundancy payment of £21,000 (20 × 1.5 × £700). To qualify, an employee must have a minimum of two years' continuous employment.
NHS Scotland Enhanced Provisions
NHS Scotland operates an enhanced redundancy scheme under its Workforce Policies. For qualifying employees, the enhanced element uses actual pensionable pay rather than the £700 weekly statutory cap as the basis for calculation, resulting in higher payments for staff earning above this threshold. Employees meeting the service and eligibility criteria may also qualify for premature retirement provisions or extended notice-period pay that go beyond the ERA 1996 statutory minimum.
ERA 1996 always sets the absolute floor; the AfC-enhanced provisions are paid in addition to — not instead of — statutory rights.
Notice Periods
Under ERA 1996, section 86, employees are entitled to a minimum statutory notice period of one week for each complete year of continuous employment, up to a maximum of twelve weeks. An employer must give at least one week's notice to any employee who has been employed for one month or more.
NHS Scotland AfC terms and conditions set contractual notice periods that exceed these statutory minimums:
- Bands 1–7: typically four weeks' minimum contractual notice after completing the probationary period
- Bands 8a and above: often twelve weeks' contractual notice
Where a contract specifies a notice period shorter than the ERA 1996 statutory entitlement, the statutory minimum prevails and the contractual term is unenforceable. Employees who receive a pay-in-lieu-of-notice settlement should ensure it reflects the full contractual — not merely statutory — notice period to which they are entitled.
Pension Rights
The majority of NHS Scotland AfC staff are members of the NHS Pension Scheme (Scotland), administered under the NHS Pension Scheme (Scotland) Regulations 2015 and governed by the Public Service Pensions Act 2013. Since 1 April 2015, all new entrants and transitional members have been enrolled in the 2015 scheme — a Career Average Revalued Earnings (CARE) arrangement that is among the most valuable defined-benefit pensions available in the United Kingdom.
Key Features of the NHS Pension Scheme (Scotland) 2015
- Accrual rate: 1/54th of pensionable earnings per year of pensionable service
- Revaluation: Accrued pension is revalued annually in line with CPI, preserving real-terms value
- Normal Pension Age: Linked to State Pension age (currently 67 for most workers)
- Ill-health retirement: Tiered benefits for qualifying members unable to continue working
Employee Contribution Tiers (2025–26)
Employee contributions are tiered against pensionable pay, ensuring lower-paid staff contribute less as a proportion of earnings:
| Pensionable Pay Band | Employee Contribution |
|---|---|
| Up to ~£13,246 | 5.2% |
| ~£13,247 – ~£26,831 | 6.5% |
| ~£26,832 – ~£32,691 | 8.3% |
| ~£32,692 – ~£49,078 | 9.8% |
| ~£49,079 – ~£62,924 | 10.7% |
| ~£62,925 and above | 12.5% |
Employer contributions are substantial — significantly in excess of 20% of pensionable pay — making the NHS pension one of the most valuable components of total compensation in the public sector.
For any AfC staff not yet enrolled, auto-enrolment obligations under the Pensions Act 2008 apply: employers must auto-enrol eligible workers and contribute a minimum of 3% of qualifying earnings alongside a minimum 5% employee contribution. The NHS scheme exceeds these minimums considerably.
Your Rights Under the Agreement
The NHS Scotland AfC settlement operates within a layered framework of statutory employment rights. Key protections for AfC workers include:
- Right to collective bargaining: The seven signatory unions are formally recognised by NHS Scotland Health Boards under TULRCA 1992, meaning your pay and terms are determined through a legally binding negotiated process, not set unilaterally by the employer.
- Right to written particulars: Under ERA 1996, all NHS Scotland employees are entitled from day one of employment to a written statement of their main terms and conditions, including their pay band, contractual hours, and leave entitlement.
- Equal pay protections: Agenda for Change bands are underpinned by a systematic job evaluation scheme designed to comply with the equal pay provisions of the Equality Act 2010, reducing the risk of pay discrimination on grounds of sex or other protected characteristics.
- Inflation protection: The CPI +1pp guarantee is a contractual commitment incorporated into the collective agreement, not merely a policy aspiration. Where uplifts in either year fail to meet this threshold, members have grounds to raise a collective dispute through their union under TULRCA 1992.
- Redundancy rights: ERA 1996 guarantees minimum statutory redundancy pay for qualifying employees; NHS Scotland's enhanced provisions provide additional protection above this floor.
Frequently Asked Questions
When did the pay increases take effect? The 4.25% Year 1 uplift was effective from 1 April 2025 and backdated to that date, with arrear payments issued from June 2025. The 3.75% Year 2 uplift applies from 1 April 2026.
Which unions negotiated the deal, and am I covered? The deal was negotiated by UNISON, the RCN, Unite, GMB, BMA Scotland, and the RCM. If you are an NHS Scotland employee on an Agenda for Change contract, the settlement applies to you regardless of whether you are a union member — though membership gives access to representation and dispute support.
What is the inflation guarantee, and what happens if CPI rises sharply? The agreement guarantees each year's pay uplift will exceed average CPI for that year by at least one percentage point. If CPI unexpectedly rises — say, to 5% in 2026–27 — the Year 2 award would need to increase to at least 6%, not remain at 3.75%. The mechanism is a contractual floor, enforceable through collective negotiation under TULRCA 1992.
I am a Band 5 registered nurse — are there any specific Band 5 commitments? The 4.25% and 3.75% uplifts apply equally to Band 5 as to all other bands. In addition, the RCN secured a commitment for an accelerated review of Band 5 nursing roles, with increased staff participation, to be progressed as part of the wider structural review of AfC terms and conditions begun under the 2023–24 agreement. The aim is to ensure Band 5 pay and structure reflects the complexity and responsibility of modern nursing practice.
What redundancy pay am I entitled to if my role is at risk? Statutory redundancy pay under ERA 1996 is based on your age, weekly pay (capped at £700 in 2026), and years of service (maximum 20). NHS Scotland's enhanced policy may use your actual pensionable pay rather than the capped figure. You need at least two years' continuous NHS service to qualify.
Are bank holidays counted within my annual leave? No. Under NHS Scotland AfC terms, annual leave (27, 29 or 33 days depending on service) is granted in addition to eight UK bank holidays, giving a total of 35 to 41 days. This is more generous than the WTR 1998 statutory minimum of 28 days, which is inclusive of bank holidays.
Conclusion
The NHS Scotland Agenda for Change Pay Settlement 2025–2027 represents one of the most significant pay commitments for NHS Scotland staff in recent years. The combination of a 4.25% uplift in Year 1, 3.75% in Year 2, and an unprecedented CPI-linked 'real-terms plus' inflation guarantee — backed by £701m of Scottish Government investment — gives approximately 170,000 nurses, midwives, paramedics, allied health professionals and support workers the clearest assurance of real pay growth in a generation. Layered on top of enhanced annual leave entitlements, robust redundancy provisions under ERA 1996 and NHS Scotland's own enhanced policy, long-service notice protections, and one of the UK's most valuable defined-benefit pension schemes, the settlement makes NHS Scotland employment a compelling proposition.
To see exactly how the 2025–26 and 2026–27 uplifts affect your specific band and spine point, and to calculate your redundancy entitlement and pension contributions, use the companion interactive tool:
Interactive Calculator NHS Scotland Agenda for Change Pay & Rights Calculator
This guide is for general information only and does not constitute legal advice. For advice specific to your situation, consult your union representative or a qualified employment solicitor.
