NHS Pay Glossary

Plain-English definitions of the abbreviations and concepts used across the site.

AfC (Agenda for Change): The national pay and conditions system for most non-medical NHS staff. Defines bands, spine points, working hours, and core terms.
AVC (Additional Voluntary Contribution): Extra pension contributions you can make on top of your standard NHS pension to boost retirement income.
Basic pay: See basic salary.
Basic salary: Your contracted annual pay from the AfC spine point, before any additions like HCAS, unsocial hours, or overtime.
BSO (Business Services Organisation): The body that administers the HSC Pension Scheme in Northern Ireland, equivalent to the NHSBSA in England and Wales.
DB (Defined Benefit): A pension type where your retirement income is based on salary and years of service, not investment returns. The NHS Pension Scheme is a DB scheme.
DC (Defined Contribution): A pension type where you build a pot from contributions and investment returns. Your retirement income depends on the pot size. AVCs are typically DC.
FTE (Full-Time Equivalent): A way of expressing working hours as a proportion of a full-time contract. 1.0 FTE is 37.5 hours per week under AfC (36 in Scotland).
Gateway point: The highest spine point within a band that can be reached through normal annual progression. Moving beyond it may require meeting additional criteria.
HCAS (High Cost Area Supplement): A percentage-based addition to basic salary for NHS staff working in London and surrounding areas. Based on former PCT boundaries. Three tiers: inner London, outer London, and fringe.
HMRC (HM Revenue and Customs): The UK government department that collects taxes and administers tax codes, National Insurance, and student loan repayments.
HSC (Health and Social Care): The integrated health and social care system in Northern Ireland. HSC trusts employ staff under AfC terms, equivalent to NHS trusts elsewhere.
Incremental date: The annual date when you move to the next spine point within your band, subject to meeting any progression requirements.
NHS (National Health Service): The publicly funded healthcare system in the UK. Each nation runs its own NHS with separate pay negotiations. Northern Ireland uses HSC instead.
NHSBSA (NHS Business Services Authority): The body that administers the NHS Pension Scheme in England and Wales. Handles contributions, statements, and retirement claims.
NHSPRB (NHS Pay Review Body): An independent body that makes pay recommendations to the government for AfC staff in England, Wales, and Northern Ireland. Scotland negotiates separately through STAC.
NI (National Insurance): A payroll deduction that funds state benefits including the State Pension. Calculated as a percentage of earnings above the primary threshold.
NLW (National Living Wage): The UK government’s statutory minimum hourly rate for workers aged 21 and over. Different from the real living wage set by the Living Wage Foundation.
OMP (Occupational Maternity Pay): Enhanced maternity pay provided by the NHS above the statutory minimum. Typically full pay for 8 weeks then half pay for 18 weeks, subject to conditions.
Pay progression: The annual move up the spine within your band, typically on your incremental date. Requires meeting performance and development standards.
PCS (Pay Circular Scotland): Official pay circulars issued by the Scottish Government setting out AfC pay rates and conditions for NHS Scotland staff.
PCT (Primary Care Trust): Former NHS administrative areas in England, abolished in 2013. Their boundaries are still used to determine HCAS eligibility.
Pensionable pay: The portion of your salary that pension contributions are based on. Includes basic salary and HCAS but typically excludes overtime and some allowances.
Primary threshold: The weekly earnings level above which employees start paying National Insurance. Set by HMRC each tax year.
Real living wage: An independently calculated hourly rate set by the Living Wage Foundation based on actual living costs. Higher than the statutory National Living Wage. Wales uses it as a floor for NHS pay.
RRP (Recruitment and Retention Premia): Additional payments that employers can offer to attract or keep staff in hard-to-fill roles. Up to 30% of basic pay in Scotland; managed locally elsewhere.
Salary sacrifice (NET pay arrangement): A pension arrangement where contributions are deducted from gross salary before tax is calculated. The NHS Pension Scheme uses this method, reducing your taxable income automatically.
Spine point: A fixed salary step within an AfC band. Each band has multiple spine points that you progress through annually.
SPPA (Scottish Public Pensions Agency): The body that administers the NHS Pension Scheme for Scottish NHS staff, equivalent to the NHSBSA in England and Wales.
STAC (Scottish Terms and Conditions Committee): The body that negotiates AfC pay directly with unions in Scotland, bypassing the NHSPRB used by England, Wales, and Northern Ireland.
Tax code (1257L): An HMRC code that tells your employer how much tax-free income to give you. 1257L is the standard code, giving a £12,570 personal allowance.
Unsocial hours: Enhanced pay for working evenings, nights, weekends, and public holidays. Calculated as a percentage of basic salary at rates set in the AfC handbook.

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