This circular updates the two year pay settlement for Agenda for Change staff in NHS Scotland previously set out in PCS(AFC)2025/5. This is necessary because the inflation guarantee which was part of that deal has been triggered. 

Under the agreement, Agenda for Change staff in Scotland were due a 4.25% increase in pay in 2025-26 and a 3.75% increase in pay in 2026-27. However, the settlement also contains a guarantee that the increase in pay in each year will be at least one percentage point above the average CPI inflation for the calendar year of the uplift. 

CPI inflation in the 2025 calendar year has now been confirmed as 3.4%, meaning pay rates and all relevant payments will need to be adjusted by 0.15%. The headline settlement for 2025-26 is therefore now 4.4%. 

Staff should notice this change in their February salaries, with the majority of arrears occasioned by this change paid in March. 

This update to 2025-26 rates creates a new baseline for 2026-27 and the 3.75% settlement in 2026-27 will be adjusted accordingly.