- This statement applies to all AXA UK employees other than AXA Health or AXA Global Healthcare
- The 2022 pay budget has been negotiated by AXA and Unite
- A 4.5% pay review budget increase has been offered for the bargaining group, Associates to Professionals
- 3% will be provided to Senior Professionals to Senior Leaders
- Individual pay increases will vary based on performance and position in pay range, and will be effective 1 April 2022
- Unite members will go to ballot (i.e. vote on the offer) between 8-17 February
Each year we review the pay budget (how much AXA has to spend on pay increases) and how it is distributed out to employees. These elements are negotiated between AXA and Unite for all AXA UK employees at Associate to Professional grades, except for those in AXA Health and AXA Global Health.
AXA Health and AXA Global Healthcare have also released their own pay statements today and other AXA entities based in the UK will have their own pay arrangements.
This year, the negotiation has concluded with an offer of a 4.5% overall pay budget increase for employees across the Associate to Professional grades. Separately, a budget increase of 3% will apply to the Senior Professional to Senior Leader grades.
Why is AXA proposing a higher budget for our Associate to Professional grades compared to Senior Professional and Senior Leader grades?
This is because the main purpose of pay review for AXA is to keep pay rates competitive in the market, and careful external research and benchmarking has shown that in the Associate to Professional grades AXA needs to invest more to be competitive. We’re also aware that cost of living has been rising significantly over recent months and often this disproportionately affects people at these levels.
Whilst the overall budgets will be shared across all eligible employees, individual increases will vary based on the factors set out below.
How AXA distributes pay awards – matrix vs. discretionary approaches
AXA distributes pay awards based on either a matrix or discretionary approach according to employee grade. Both approaches are described further below but first this table shows which approach and proposed pay budget value applies to each employee grade
Matrix pay distribution approach (Associate and Senior Associate)
The total 2022 pay budget increase (the amount available to spend) for this group is 4.5%, however the actual pay award for each individual will be influenced by their performance rating and the position of their salary in the pay range. Following the matrix below, this means that larger awards will be provided to those with a higher performance rating and those positioned at the low end of the pay range.
Further information about how pay is distributed using the matrix (including how to calculate your position in range) can be found on the My Pay page on ONE.
Discretionary pay approach – Professional, Senior Professional, Leader & Senior Leader
Managers who are responsible for making pay decisions during the pay review process (also known as Pool Heads) will use their discretion to provide pay awards for employees in Professional to Senior Leader grades, keeping within the overall budgets.
A range of factors are considered when making a decision on an individual’s pay including their performance, the external market and comparison to peers. Outcomes are reviewed centrally to ensure fairness. The process for these checks and the guidance provided to Pool Heads ahead of pay review are reconsidered each year to ensure that they continue to be fit for purpose and lead to appropriate pay outcomes for employees.
Adjustments to pay ranges
Minimum salaries in the UK pay ranges will be increased in line with the new Real Living Wage for National and London (£18,018 and £20,111, respectively, for a 35-hour FTE contract). Where necessary, these adjustments are being made in addition to the pay budgets described above.
Separately, the pay ranges will be assessed to determine whether further upward adjustments are required, keeping the external market in mind.
The revised 2022 pay ranges will be available in the Manager area on ONE towards the end of February and will be effective 1 April 2022.
Unite members will go to ballot on this offer between the 8 and 17 February. The final pay budget won’t be confirmed until the results of the ballot are known.
Individual pay outcomes will be formally communicated to employees in March and any pay increases will take effect from 1 April 2022.
There is more information on the pay review process on the My Pay page on ONE. Please speak to your line manager or Unite representative if you have any questions.
Claudio Gienal Dominic Hook
Group Chief Executive National Officer
AXA UK & Ireland Unite the Union