University College London (UCL) has introduced a new pay and reward system, announcing an investment of £110.2 million in employees’ salaries over the next four years.
UCL’s University Management Committee approved the strategy, which reflects a “need to continue to recruit, motivate and retain excellent staff”.
The key parts of the package include an overall median pay rise of 9.5% in 2023, including incremental increases and the national pay deal. The London Allowance will also be elevated to £4,500 this August, then to £5,000 for grades one to seven employees from December.
According to the university, which is a living wage accredited employer, the measure is designed to provide “a significant and immediate flat rate rise to our middle and lower paid staff while also improving the gender, ethnicity and disability pay gaps”.
The new strategy will see a rise in the maximum increase to pay scales for grades one to nine employees, as well as improved promotion processes and a wider reward package for professors. Researchers are additionally set to benefit from a better sabbatical entitlement.
Announcing the adjustments on its website, the university states they will also apply to cleaners, caterers, porters and security staff at partner businesses. It believes that increasing the salaries of the lowest-paid workers will mean its rates are significantly higher than the London living wage.
The university further explained that a priority of the new strategy was to enable larger initial increases for grades one to seven employees at lower or mid pay points this year, with longer-term rises to its pay structure at mid and higher levels where it recognises salaries may be less competitive than those offered at other institutions.