18 August 2021

The NHS Terms and Conditions of Service Agenda for Change Handbook states that when AfC employees take annual leave, they should be paid as if they are at work. 

In March 2021, the NHS Staff Council (which includes representatives from employers and trade unions) agreed a framework to make corrective payments for the period between 1 April 2019 and 31 March 2021 to include regularly worked overtime or additional basic hours for part-time staff in the calculation of pay during annual leave, as they have not previously been included.

To be eligible to receive the payment for 2019/20 and 2020/21, employees:

  1. must be employed by an NHS employer on 31 March 2021; and
  1. must have received payments in respect of overtime in a minimum of four months out of any of the 12 months in the financial year 1 April 2019 to 31 March 2020 and/or 1 April 2020 to 31 March 2021.

For this agreement only, eligible staff will receive a payment of 16 per cent of the total amount of overtime pay received by the staff member in either of the financial years 2019/20 and 2020/21.

Full details are available on the NHS Employers website.

For payments from 1 April 2021, we are awaiting confirmation from NHS Employers and will update you as soon as we have been advised of the process.

The corrective payment is a non-consolidated and non-pensionable compensatory payment and will be subject to deductions for income tax and national insurance contributions (NICs). State benefits which depend on NICs may be affected by a corrective payment. Benefits which do not depend on NICs will not be affected. Individuals in receipt of state benefits which depend on NICs should contact their benefit provider if they have any queries.

Payments will be made to eligible individuals in their September 2021 salary. If you do not receive payment in your September 2021 salary, then you have not met the eligibility criteria for the payment.

These payments have been calculated by NHS England/Improvement and payroll, in line with the criteria set by the framework.

Those staff who were absent due to maternity leave in either year or shielding in the year 2020/21 will have their overtime review adjusted to consider April 2018 to March 2019 for one year of absence and April 2018 to March 2019 and April 2017 to March 2018 if absence for these reasons in both years.

If you have any queries after receiving your corrective payment in September 2021, please email: correctivepayments@merseycare.nhs.uk

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