On 1 April 2019, a number of changes occurred to pay and pensions which will have an impact on your take-home pay. This note summarises these changes and who they affect, providing links if you are looking for more information.

Income tax

The allowances for income tax, for basic and higher rate taxpayers are both increasing. The personal allowance ie. the amount of earnings on which you pay no tax will increase from £11,850 to £12,500. The higher rate threshold ie. above which you will pay 40% tax will increase from £46,350 to £50,000. For most people this means that you will pay less tax and your take-home pay will be higher.

Living Wage

The national living wage, as defined by the Government, will increase from £7.83 to £8.21 per hour. However, because we are an accredited living wage employer, the minimum we will pay anybody at the University will be £9.00 per hour (equivalent to £17,079 on a full-time basis). If your basic salary is less than this, you will receive a pay supplement to bring you up to £9.00 per hour.

Pay increments

For Grades 2-9, the University operates a pay scale which you will progress up based your length of service. If you have had 6 months in your grade, your performance is satisfactory and you are below the top Normal Progression Point for your grade, you will receive a pay increment. These are shown on the University pay scale and are worth approximately 3% of salary.

USS Pension

If you are in the USS pension scheme (mainly Grades 6 and above) the amount you pay, and the amount the University pays, are both increasing. Your contribution will rise from 8% of salary to 8.8% of salary; the University contribution will rise from 18% of salary to 19.5% of salary. USS are also now carrying out a new valuation (as at 31 March 2018) to determine the future costs of the scheme.

How this actually affects you pay in April will depend upon your individual circumstances. If you have any questions about your own pay these should be sent to payroll@bath.ac.uk. Any questions on pay policy should go to reward@bath.ac.uk.

National negotiations for the next annual pay award started on 26 March. The Trades Unions have submitted a joint claim and the employers’ side have outlined the financial challenges facing the whole sector. More detail of these can be found here. If the negotiations are successful, any agreed pay changes will be effective from 1 August 2019.

Richard Brooks, Director of Human Resources

Martin Williams, Director of Finance