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The New Pay System

How the new pay system will work from 1st June 2005

Please note that the following information assumes an on-call rota and does not apply to full-shift working.

Base pay under new arrangements is determined by the actual hours of work undertaken by the flexible trainee. As with full-time trainees, a supplement is payable to reflect the level and frequency of out-of-hours work, and this is calculated as a proportion of the basic salary determined by the hours worked.
This is best illustrated by example. Those following assume that basic salary is funded on the basis of the contracted proportion of full-time – a 0.6 flexible attracts 0.6 full-time funding contribution from the London Deanery’s flexible training budget, a 0.5 flexible attracting 0.5 and so on.

Example 1
A flexible trainee is contracted to work 60% of full-time, and will be taking up post in a rota where the full-time doctors are in Band 1, working 47 hours a week.
To meet the training requirements in terms of working time, the flexible trainee will be expected to work 60% of 47 hours, which is 28.2 hours a week; this puts the trainee at the lower edge of pay Band F7, setting the basic pay at 70% of full-time.
They will be working as part of a resident on-call rota of 8 doctors with prospective cover, making the rota Band 1A. The frequency of the flexible’s on-call is 1 in 13.3, putting the trainee into intensity Band A with a supplement of 50%.

Flexible Basic Pay = 70% of Full-time Basic Pay (70% of 1 = 0.7)
Flexible Supplement = 50% of Flexible Basic Pay (50% of 0.7 = 0.35)
Flexible Pay = Flexible Basic Pay + Supplement
= 0.7 + 0.35
= 1.05 Full Basic Salary

This is funded by 0.6 by the Deanery and 0.45 from the Trust.

In this scenario, with the flexible at the bottom end of pay Band F7, the flexible is paid at a higher hourly rate than the full-time trainee. Pay Band F7 extends up to 32 hours a week and if the flexible were to work a little more while the full-time trainee worked an hour or so less, total pay would not change but the rates would equalise. This is an inevitable consequence of a banded pay system.

Example 2
In the same rota the full-time trainees work 45 hours a week. Flexible working hours needed will be 27, putting the trainee into pay Band F6, attracting 60% of full basic salary. The frequency of on-call will remain at 1 in 13.3, leaving the trainee in intensity Band A.

Flexible Basic Pay = 60% of Full-time Basic Pay (60% of 1 = 0.6)
Flexible Supplement = 50% of Flexible Basic Pay (50% of 0.6 = 03)
Flexible Pay = Flexible Basic Pay + Supplement
= 0.6 + 0.3
= 0.9 Full Basic Salary
This is funded by 0.6 from the Deanery and 0.3 from the Trust. In this scenario the full-time trainee and the flexible attract the same hourly rate for work done.

Example 3
In the same rota a flexible works 50% of full-time. Working hours needed will be 23.5, putting the trainee into pay Band F5, attracting 50% of full basic salary. The frequency of on-call will be 1 in 16, putting the trainee in intensity Band B with a supplement of 40%.

Flexible Basic Pay = 50% of Full-time Basic Pay (50% of 1 = 0.5)
Flexible Supplement = 40% of Flexible Basic Pay (40% of 0.5 = 0.2)
Flexible Pay = Flexible Basic Pay + Supplement
= 0.5 + 0.2
= 0.7 Full Basic Salary

This funded by 0.5 by the Deanery and 0.2 from the Trust.
In this last scenario the flexible trainee is paid a slightly lower hourly rate than the full-timer.

In all three examples it is clear under the new system what proportion of the salary is to be funded by the Deanery and what is supplemental, to be funded by the Trust. Salaries are broadly equivalent to those full-timers, bear a direct relationship to the amount of work carried out, and employers have, as a consequence, the potential for a far greater control over their staffing costs.

Please note that, in London, where two flexible trainees slot-share a full-time post, the Deanery flexible training budget makes a funding contribution of one full basic salary (1.0), in addition to the funding already provided for the full-time post.