
HMRC pay process
ARC’s role in HMRC pay negotiations explained
HMRC – and all civil service employers – operate under delegated pay arrangements, meaning it negotiates pay within the limits of the Civil Service Pay Remit Guidance (PRG) issued annually by the Cabinet Office. Last year’s guidance is available here. This defines a headline percentage maximum average paybill increase, which provides a framework within which all departments will set pay for the year.
Each individual employer then negotiates how this pay rise is applied to their workforce in delegated grades (AA to G6). Depending on the employer and our priorities, the percentage figure received by individuals can vary depending on their grade, role, or other factors.
In recent years, the PRG has been issued later in the year, and therefore in many cases formal pay rises have not been implemented until the Autumn.
In HMRC, ARC typically begin informal discussions with the employer in the first half of the year to outline our members’ priorities for the forthcoming pay round.
Once the pay remit guidance is published, ARC’s pay team works to secure the best possible outcome available within the remit for our members, considering workforce needs and financial constraints. ARC will pragmatically engage with the department to achieve this.
ARC, and the FDA as a whole, believe the pay system for delegated grades is fundamentally broken. The current process encourages short-term thinking, with no meaningful prospect of much needed changes at both departmental and civil service level. ARC will continue to support the wider FDA in engaging with Cabinet Office to achieve meaningful and positive reform to civil service pay in way that properly rewards knowledge, skills and experience.
For details of ARC’s involvement in last year’s negotiations, please see our 2025-26 pay newsletter to see how our member-led pay strategy resulted in a fully consolidated pay award for ARC members.
Latest news
-

FDA highly commended for Funding the Nation campaign at 2025 TUC Comms Awards
The FDA is delighted to have been highly commended in the Best Campaign Communication category for ‘Funding the Nation’ at this year’s TUC Comms Awards.
-

Budget response: FDA welcomes HMRC investment but raises concerns over ongoing departmental efficiencies
Budget response: FDA welcomes HMRC investment but raises concerns over ongoing departmental efficiencies
-

HMRC announce 5,000 additional staff following FDA recommendations
In a significant win for the FDA, the government announce investment in HMRC’s compliance work, technological infrastructure and customer services to recover more tax revenues.
Join the FDA today
By joining the FDA, you’ll be standing alongside more than 26,000 other members who believe that public services – and the people who deliver them – matter.