Remuneration 

The remuneration of senior civil servants is set in accordance with the rules set out in chapter 7.1, Annex A of the Civil Service Management Code and in conjunction with independent advice from the Senior Salaries Review Body (SSRB). In reaching its recommendations, the SSRB is to have regard to the following considerations:

• the need to recruit, retain and motivate and, where relevant, promote suitably able and qualified people to exercise their different responsibilities
• regional/local variations in labour markets and their effects on the recruitment and retention of staff
• government policies for improving the public services including the requirement on departments to meet the output targets for the delivery of departmental services
• the funds available to departments as set out in the Government’s departmental expenditure limits
• the Government’s inflation target
• evidence they receive about wider economic considerations and the affordability of their recommendations.

The remuneration of non-senior civil servants within Revenue Scotland is set in accordance with Scottish Government Public Sector Pay Policy 2025–26 as part of the Scottish Government Main Bargaining Unit. Revenue Scotland’s Board members are non-executive and receive fees for duties on behalf of Revenue Scotland, including attendance at Revenue Scotland Board and committee meetings. Fees are paid at the daily rate set out in their letters of appointment and increased annually in line with the Scottish Government Public Sector Pay Policy. Expenses incurred in carrying out these duties are also reimbursed.

Fees of non-executive members and salaries of the Senior Leadership Team are shown below. This information subject to audit.

Non-executive members are not employees of Revenue Scotland and do not benefit from pension arrangements. Non-executive members have a maximum number of days per annum that can be claimed under the letters of appointment are which are costed as the following: Chair £15,000-20,000 and Board members and Co-opted members £10,000-15,000. 

Pension benefits to the nearest £1000 – 2024–25 has been revised following the latest estimates from Capita. This has taken place after the transfer of responsibilities from MyCSP to Capita in 2025-26.

Accrued pension benefits included in this table for any individual affected by the Public Service Pensions Remedy have been calculated based on their inclusion in the legacy scheme for the period between 1 April 2015 and 31 March 2022, following the McCloud judgment. The Public Service Pensions Remedy applies to individuals that were members, or eligible to be members, of a public service pension scheme on 31 March 2012 and were members of a public service pension scheme between 1 April 2015 and 31 March 2022. The basis for the calculation reflects the legal position that impacted members have been rolled back into the relevant legacy scheme for the remedy period and that this will apply unless the member actively exercises their entitlement on retirement to decide instead to receive benefits calculated under the terms of the Alpha scheme for the period from 1 April 2015 to 31 March 2022.

None of the above received any benefits in kind or bonus payments in the years 2025–26 or 2024–25. Salary covers both pensionable and non-pensionable amounts and includes gross salaries; overtime; recruitment and retention allowances; or other allowances to the extent that they are subject to UK taxation and any ex-gratia payments. It does not include amounts which are a reimbursement of expenses directly incurred in the performance of an individual’s duties. This information is subject to audit.

Fair pay disclosure

Reporting bodies are required to disclose the percentage increase in pay from the previous financial year for the highest-paid director in their organisation and the average percentage increase for all employees of the organisation. In 2025-26 the mid-point of the band of the highest-paid member of the Senior Leadership Team decreased by 4.26% from 2024-25. The average increase for all other employees was 3%. Actual grade pay increases varied from -2% to 8%.

Reporting bodies are also required to disclose pay-ratio information for the highest paid director and median and quartile employee pay.

No employee received remuneration in excess of the highest-paid member of the Senior Leadership Team. Remuneration ranged from £26,245 to £111,916 (2024–25: £25,235 to £117,329). This information is subject to audit.

Pension benefits

Pension benefits are calculated on normal retirement age (NRA) where the pension entitlement is due at that age or at current age if over NRA. Pension data is supplied to Revenue Scotland by Capita, pension administrators. 2024-25 CETV has been revised following the latest estimates from Capita. This has taken place after the transfer of responsibilities from MyCSP to Capita in 2025-26. This information is subject to audit.

Civil Service pensions

Pension benefits are provided through the Civil Service pension arrangements. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or Alpha, which provides benefits on a career average basis with a normal pension age equal to the member’s State Pension Age (or 65 if higher). From that date, all newly appointed civil servants and the majority of those already in service joined Alpha. Prior to that date, civil servants participated in the Principal Civil Service Pension Scheme (PCSPS). The PCSPS has four sections: three providing benefits on a final salary basis (Classic, Premium or Classic Plus) with a normal pension age of 60; and one providing benefits on a whole career basis (Nuvos) with a normal pension age of 65.

These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under Classic, Premium, Classic Plus, Nuvos and Alpha are increased annually in line with Pensions Increase legislation. 

Existing members of the PCSPS who were within 10 years of their normal pension age on 1 April 2012 remained in the PCSPS after 1 April 2015. Those who were between 10 years and 13 years and 5 months from their normal pension age on 1 April 2012 switched onto Alpha sometime between 1 June 2015 and 1 February 2022. The Government removed discrimination identified by the courts in the way that the 2015 pension reforms were introduced for some members. As a result, eligible members with relevant service between 1 April 2015 and 31 March 2022 may have been entitled to different pension benefits in relation to that period.

All members who switch to Alpha have their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave Alpha. (The pension figures quoted for officials show pension earned in PCSPS or Alpha, as appropriate. Where the official has benefits in both the PCSPS and alpha, the figure quoted is the combined value of their benefits in the two schemes). Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a defined contribution (money purchase) pension with an employer contribution (partnership pension account).

Employee contributions are salary-related and range between 4.6% and 8.05% for members of Classic, Premium, Classic Plus, Nuvos and Alpha. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years initial pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike Classic, there is no automatic lump sum. Classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium. In Nuvos a member builds up a pension based on their pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member’s earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation. Benefits in Alpha build up in a similar way to Nuvos, except that the accrual rate is 2.32%.

In all cases members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004. The partnership pension account is an occupational defined contribution pension arrangement which is part of the Legal & General Mastertrust. The employer makes a basic contribution of between 8.0% and 14.75% (depending on the age of the member). The employee does not have to contribute, but where they do make contributions, the employer will match these up to a limit of 3.0% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally provided risk benefit cover (death in service and ill health retirement). The accrued pension is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age.

The pension figures for officials show pension earned in PCSPS or Alpha, as appropriate. Where the official has benefits in both the PCSPS and Alpha the figure is the combined value of their benefits in the two schemes but note that part of that pension may be payable from different ages. Further details about the Civil Service pension arrangements can be found at the Civil Service Pension Scheme website. 

Cash equivalent transfer values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme.

A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement, which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with the Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax, which may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Staff Report 

Staff at Revenue Scotland are civil servants who form part of the Scottish Administration, rather than the Scottish Government, and must adhere to the Civil Service Code applicable to personnel in Non-Ministerial Offices in Scotland. The code sets out the framework within which all civil servants work, and the core values and standards of behaviour which they are expected to uphold. Staff are appointed by Revenue Scotland and act under the direction of the Board of Revenue Scotland. Revenue Scotland is responsible for ensuring that staff recruitment arrangements are fair, open and transparent in line with the Civil Service Commissioners’ Recruitment Principles. All recruitment, including for Senior Civil Service posts, adhere to the Scottish Government’s recruitment policies and procedures.

Average number of employees

The average number of whole-time equivalent people employed during the year was as follows. This information is subject to audit.

Staff composition

The average number of people employed of each sex by Revenue Scotland by category is set out in the following table. The numbers include permanent staff.

Gender pay gap

The gender pay gap is calculated as the difference between average hourly earnings of men and women as a proportion of average hourly earnings (excluding overtime) of men’s earnings. A positive pay gap means that men earn more than women on average. The gender pay gap is a means of highlighting a disparity in the pay received by men and women. It is influenced by both the pay levels for equivalent jobs and the distribution of men and women across the grades within the permanent workforce. 

Provisional Data for 2025 published by the ONS reports the gender pay gap for Scotland as 3.5% and 12.8% for the UK. This is the mean figure which is the standard figure used by the Office of National Statistics (ONS) to calculate the pay gap. 

The median gender pay gap for all staff at Revenue Scotland at the end of March 2025 was 12.8% compared to 4.1% in 2024–25, and the mean gender pay gap is 12.9% compared to 5.9% in 2025–26. The movement arises from changes in the gender mix of staff at March in each financial year as represented in the table above, as well as changes in grades of those staff. 

Within Revenue Scotland, where men and women are undertaking work of an equal value (i.e. within the same pay range) they are paid a similar rate. A pay gap can arise if a higher percentage of a gendered staff are at lower grades than the other gendered staff, and the size of the organisation means that figures can be disproportionately affected by a small change in composition. It should be noted that the pay gap is calculated at a point in time and can move significantly from month to month.

Due to a change in gender pay gap reporting requirements, this will in future be based on biological sex in line with EHRC guidance which may introduce fluctuations in the reporting.

Sickness and absence

We recognise the success of any organisation depends largely on the effective performance and full attendance of all its employees. People are a valued resource, and as an employer, Revenue Scotland’s attendance management procedures are designed to maintain a stable, well-motivated and healthy workforce. The procedures aim to: 

• be supportive and positive
• promote fair and consistent treatment for everyone
• encourage, assist and support people to stay in work
• explain employees’ entitlements and roles and responsibilities

In 2025-26 an average of 8.6 working days per employee were lost (2024-25: 10.7 days). This decrease was attributed to reduction in long term absences 5.2% (2024-5 was 6.7%), short term absence levels also reduced slightly 3.2% (2024-5 was 4%).

Staff

The definition of turnover for this reporting period is defined as the number of people leaving an organisation divided by the average headcount of that business area, for a given period. Leavers includes terminations of employment, moves out to the Core Scottish Government (SG) and other SG agencies/NDPBs, and temporary absences on career break, secondment etc. In 2025–26 the average turnover is 6.76% (2024–25: 16%).

Staff engagement

Revenue Scotland participates in the Civil Service People Survey and includes the employee engagement index as one of the key performance indicators. More information on staff engagement is given in the Performance report.

Employees with disabilities

We comply with the Scottish Government’s Civil Service Code of Practice on the employment of people with disabilities. The code aims to ensure there is no discrimination on the grounds of disability and that employment opportunities and career advancement is based solely on ability, qualifications and suitability for the work.

Equality, Diversity, and Inclusion

Equality and diversity are central to the way we conduct our business, and this is demonstrated in the Corporate Plan and People Strategy, as well as being set out in the Equality Mainstreaming Reports. More information on Equality and Diversity can be found in the Performance report.

Health and Safety

Health and safety remain a key priority for Revenue Scotland. Whilst Revenue Scotland is broadly a safe working environment, we are committed to maintaining a strong safety culture and ensuring all staff understand their responsibilities. Risks to our staff are generally low but in areas that have additional Health and Safety risks, a proactive approach is taken to Risk Assessment, mitigation and guidance for affected staff. Over the past year we continued to deliver activity that promotes awareness and supports full compliance.

A bespoke Health and Safety training package was added to our mandatory learning, complemented in late 2025–26 by specialist training for staff preparing for Scottish Aggregates Tax compliance site visits. Our Health and Safety Policy was updated to include personal security and our Accident Reporting Policy was revised. We are also nearing completion of a new Driving for Work Policy.

The Health, Safety and Wellbeing Committee met regularly throughout the year, reviewing actions and gathering organisational feedback. Its membership was strengthened with colleagues from other Scottish Government bodies, bringing valuable external insight. We also appointed three new Health and Safety Liaison Officers, all of whom completed the NEBOSH Health and Safety at Work course.

Our 2025–26 Health and Safety Annual Report outlines our strategic focus for the coming year, including preventative measures and responsive actions to maintain high safety standards. We continued to use specialist support for operational risks, including landfill visits, via SEPA under our Memorandum of Understanding, and our Competent Person service supported the development of risk assessments and the new Driving for Work Policy.

Regular Health, Safety and Wellbeing dashboard reports were considered at SEC meetings, with an annual deep dive providing further assurance. Health and safety updates also formed a standing item within the Chief Executive’s quarterly reports to the Board.

The majority of our Board members and several senior managers hold NEBOSH Health and Safety Leadership Excellence qualifications and our Risk and Assurance Manager and Health and Safety Liaison Officers also hold relevant NEBOSH certifications. Quarterly inspections of our offices ensured a safe working environment. 

Under RIDDOR, certain incidents must be reported to the Health and Safety Executive. No such incidents occurred during 2025–26.

Revenue Scotland’s Board and Senior Leadership Team (SLT) have a legal duty of care towards protecting the health and safety of our staff and others who may be affected by our activities, and that managing Health and Safety is a business critical function. These responsibilities are discharged to SLT under the oversight of the Board.

Civil Service early departure compensation schemes

Redundancy and other departure costs are paid in accordance with the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972. These are employer costs associated with early departure and are accounted for in full in the year of departure. Where Revenue Scotland has agreed early retirements, the additional costs are met by Revenue Scotland and not the Civil Service pension scheme. Ill-health retirement costs are met by the pension scheme and are not included in the undernoted.  One member of staff was awarded Efficiency Compensation under the scheme within the £25,000-£50,000 band. No staff left the under the scheme in 2024-25. 

Staff costs

Staff costs for Revenue Scotland in the period 2025–26 are set out above. Wages and salaries include gross salaries, performance pay or bonuses received in year (of which there were none), overtime and any other allowance that is subject to UK taxation. The payment of legitimate expenses is not part of salary.

The Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and Other Pension Scheme (CSOPS) – known as ‘Alpha’ – are unfunded multi-employer defined benefit schemes. However, Revenue Scotland is unable to identify its share of the underlying assets and liabilities. The scheme actuary valued the PCSPS as at 31 March 2024. The schemes are accounted for as defined contribution schemes under the multi-employer exemption permitted under IAS19 employee benefits. 

Details are available in the resource accounts of the Cabinet Office: Civil Superannuation. For 2025-26, employers’ contributions of £1,518,000 were payable to the PCSPS (2024-25: £1,322,000) at 28.97% of pensionable earnings across all salary bands. The Scheme Actuary reviews employer contributions usually every four years following a full scheme valuation. The contribution rates are set to meet the cost of the benefits accruing during 2025-26 to be paid when the member retires and not the benefits paid during this period to existing pensioners. Employees can opt to open a partnership pension account, which is a stakeholder pension with an employer contribution.

Employers’ contributions of £nil (2024– 25: £nil) were paid to one or more of the panel of three appointed stakeholder pension providers. Employer contributions are age-related and range from 8% to 14.75%. Employers also match employee contributions up to 3% of pensionable earnings. The information included within the remuneration, fair pay, pension benefits, Civil Service early departure compensation packages, average number of persons employed and staff costs sections above are covered by the audit opinion.