Reserve Forces: Pay

(asked on 4th September 2019) - View Source

Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what steps his Department is taking to ensure that the lowest paid armed forces Reserve personnel are paid rates equivalent to the National Living Wage.


Answered by
Johnny Mercer Portrait
Johnny Mercer
Minister of State (Cabinet Office) (Minister for Veterans' Affairs)
This question was answered on 9th September 2019

In order to safeguard operational effectiveness, the Armed Forces are exempt from the provisions of the 1998 National Minimum Wage (NMW) Act. Nevertheless, we aim to ensure that the Armed Forces are remunerated in line with NMW provisions.

The daily pay offered to Part-Time Volunteer Reserve (PTVR) personnel is derived from the equivalent annual salary paid to their Regular counterparts. The annual salary is made up of base pay plus X-Factor, the latter reflecting the different conditions in Service life experienced by members of the Armed Forces compared to conditions in civilian life, averaged over a whole career and across all three Services. All pay rates, including X-Factor percentages, are recommended by the independent Armed Forces' Pay Review Body (AFPRB). At present, full-time Regular personnel are paid X-Factor at 14½% and PTVR personnel get 5% X-Factor. In giving their recommendations, the AFPRB give due consideration to the needs of the Services to recruit and retain suitably able, motivated and qualified people.

Following the Government's acceptance of the AFPRB's most recent recommendations (HCWS1770), the current annual starting salary for a Regular private or equivalent (pay increment OR2-1) has risen to £20,000 p.a., whilst the equivalent PTVR annual salary, derived using the lower level of X-Factor, has risen to £18,341 p.a. PTVR daily rates of pay are calculated by dividing the annual salary by 365¼, and a day's pay is earned through voluntary attendance of eight hours or more. For an eight-hour day, this is the equivalent of £6.28 per hour. In addition, PTVR personnel are provided with additional payments in lieu of untaken leave, equivalent to just over 10% of their pay; they may also claim an annual tax-free training bounty of up £470 in their first year of service where they meet their unit's minimum training requirements (approximately 30 days' relevant attendance). When PTVR personnel are called-up, for example for operational deployment, they are paid the same annual salary as their Regular counterparts, i.e. the rate inclusive of the higher level of X-Factor, and they also gain access to the same range of allowances payable for Regular service.

This Government will continue to work with the independent AFPRB to ensure that all members of the Armed Forces are fairly remunerated for the work that they do.

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