FCA staff will receive a pay rise averaging 3.6% from April.

The rise is above 12 month CPI inflation which was 3% in January, the most recent month for ONS inflation figures.

The pay rise was confirmed at the FCA board meeting in January but minutes of the meeting were only released yesterday by the FCA (13 March).

The increase was potentially set to be higher but the FCA says it has had to take into account the increased costs of the imminent rise in Employers’ National Insurance. From 6 April, employers' National Insurance contributions (NICs) will increase from 13.8% to 15%, adding thousands in costs to many employers' payrolls.

The FCA said it had engaged with staff representatives and unions to discuss the annual pay award.

The FCA’s People Committee has approved the pay award for 2025, providing a 3.6% average pay increase for employees, the board minutes said.

The FCA board minutes say the People Committee took into account, “additional statutory increases to employers’ National Insurance contributions from April 2025 which would be funded from the FCA’s wider operational budget.”

The 3.6% rise follows significant salary rises last year at the FCA which came after industrial action from union members unhappy at relatively low salaries for workers at the lower end of the staff scales.

Last year Financial Planning Today revealed that the average salary at the FCA had risen by an average of 4.8% in 2024 to £71,290, with some younger staff members receiving an 11.2% increase.

The FCA said it awarded pay rises last year of 11.2% on average to staff aged 18-20 following a pay review.

Separately, FCA CEO Nikhil Rathi received a 3.3% increase in his total remuneration in 2023/34 - in line with salary increases for many FCA staff, according to the FCA's Annual Report last year. His basic salary rose by £15,000 from £455,000 to £470,000, according to the report.

His total remuneration package for 2023/24 was £531,000 including pension and other benefits, equivalent approximately to a 3.3% salary increase year on year. The remaining £6,000 increase in his remuneration came from increased pension contributions made by the regulator.

Sarah Pritchard was the highest paid of the remaining executive directors of the FCA, with a total remuneration package, including pension and other benefits, of £370,000. This was a rise of £10,000 from the previous year when she was also the highest paid non-CEO executive director.

Therese Chambers, who joined the regulator's executive committee in April 2023, was close behind with a total remuneration package including pension and other benefits of £366,000.

Jessica Rusu, Stephen Roman and Emily Shepperd each took home a total remuneration package including pension and other benefits of £365,000. Sheldon Mills and Sheree Howard received total remuneration packages including pension and other benefits of £362,000.

The fee for the chair of the FCA, Ashley Alder, remained at £170,000 a year, with non-executive director fees also held at £35,000 (with an additional fee of £10,000 to non-executive directors chairing a board committee).