Banking organisation NatWest has implemented a one-off cash payment for all employees in junior and junior manager positions, benefitting approximately 59,000 global members of staff during the cost-of-living crisis.
For the 39,000 UK-based employees, the payment was agreed at £1,000, with equivalent amounts in all other locations. The payment will be made in January 2023.
In addition to the cost-of-living payment, NatWest has outlined its annual pay offer for 2023, which comprises an increase of at least £2,000 per year for UK members of staff, depending on individual performance, to take effect from 1 April. It has also proposed an uplift of the minimum salary from £20,500 to £22,000. This would be the second change to the minimum salary since April 2022, when it stood at £19,000.
The annual pay deal offer met with preliminary agreement from trade unionsUnite and the Financial Services Union, subject to a ballot of members.
According to the bank, when taken together with the cost-of-living payment, this could amount to an 8% or more increase to fixed pay for 95% of lower-paid employees, around 22,500 people altogether, with 80% of lower-paid members of staff receiving the equivalent of 10% more.
In September, NatWest introduced a permanent increase to base pay, giving those earning less than £32,000 a 4% raise.
Alison Rose, chief executive of NatWest, said: “We are committed to paying our colleagues fairly and providing further support during a difficult time. I’m pleased that we have proposed a package which builds on the measures announced earlier in the year, and that is supported by our employee representatives.
“We are also acutely aware of the challenges being faced by the customers and communities we serve and continue to put in place measures that will help those who need it most.”