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<p>In order to safeguard operational effectiveness, the Armed Forces are exempt from
the provisions of the 1998 National Minimum Wage (NMW) Act. Nevertheless, we aim to
ensure that the Armed Forces are remunerated in line with NMW provisions.</p><p>The
daily pay offered to Part-Time Volunteer Reserve (PTVR) personnel is derived from
the equivalent annual salary paid to their Regular counterparts. The annual salary
is made up of base pay plus X-Factor, the latter reflecting the different conditions
in Service life experienced by members of the Armed Forces compared to conditions
in civilian life, averaged over a whole career and across all three Services. All
pay rates, including X-Factor percentages, are recommended by the independent Armed
Forces' Pay Review Body (AFPRB). At present, full-time Regular personnel are paid
X-Factor at 14½% and PTVR personnel get 5% X-Factor. In giving their recommendations,
the AFPRB give due consideration to the needs of the Services to recruit and retain
suitably able, motivated and qualified people.</p><p>Following the Government's acceptance
of the AFPRB's most recent recommendations (HCWS1770), the current annual starting
salary for a Regular private or equivalent (pay increment OR2-1) has risen to £20,000
p.a., whilst the equivalent PTVR annual salary, derived using the lower level of X-Factor,
has risen to £18,341 p.a. PTVR daily rates of pay are calculated by dividing the annual
salary by 365¼, and a day's pay is earned through voluntary attendance of eight hours
or more. For an eight-hour day, this is the equivalent of £6.28 per hour. In addition,
PTVR personnel are provided with additional payments in lieu of untaken leave, equivalent
to just over 10% of their pay; they may also claim an annual tax-free training bounty
of up £470 in their first year of service where they meet their unit's minimum training
requirements (approximately 30 days' relevant attendance). When PTVR personnel are
called-up, for example for operational deployment, they are paid the same annual salary
as their Regular counterparts, i.e. the rate inclusive of the higher level of X-Factor,
and they also gain access to the same range of allowances payable for Regular service.</p><p>This
Government will continue to work with the independent AFPRB to ensure that all members
of the Armed Forces are fairly remunerated for the work that they do.</p>
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