What鈥檚 Changing in Agricultural Wages
On 1听April听2026,听the most recent update to听the听Agricultural Wages听(Scotland) Order came into force.听This article will summarise听the key changes to be aware of听as well as offering a reminder of the key features of The Agricultural Wages (Scotland) Order (No.73). It is vital that farming businesses ensure the pay rates and other policies they have in place are in line with the order.听
The main changes include:听
- An increase to听the听minimum听hourly听rate and the dog allowance.听听
- The daily rate for accommodation other than a house provided by the employer has also increased.听听
- An increase to the听additional听sum payable to workers with听appropriate听qualifications听
The听minimum听hourly rates of pay from听1 April听2026听are听shown below. The increase to the听minimum听hourly rate equates to a听4.1% increase on the previous year.听
The minimum rate of pay for overtime is 1.5 times the minimum hourly rate that that employee is entitled to. Therefore, for a worker without qualifications, the minimum hourly rate for overtime would be 拢19.07/hour. 听
Workers who hold a qualification in agriculture or production horticulture at听Level 3 (SCQF 6/7)听or above,听and听where it听is relevant to the work being carried out,听are entitled to a 拢1.91/hour top听up听to the听minimum听hourly rate.听SCQF 6听qualifications include Modern Apprenticeship Certificates听and听National Certificates (NC)听while a听Higher National Certificate (HNC) classes as a SCQF 7. Therefore,听these听qualifications听and听others above听such as diplomas or degrees all听entitle employees听to听the higher rate of pay.听听
The dog allowance听has increased to听拢11.18/week/dog for up to听four听dogs.听It is mandatory to make this payment听if a worker needs to keep and feed a dog (or dogs) to effectively do their job.听This amount is non-taxable.听听
From 1听April 2026, any deduction an employer makes from a wage in respect of accommodation other than a house shall not exceed 拢10.66/day. Accommodation听that would qualify would be caravans or static homes,听but听the deduction听must听only be made for each day in the week that living accommodation is provided.听听
Businesses听have the voluntary听option听to pay employees in equal instalments for each pay period regardless of the number of hours worked. This is known听as a听Stable Income Arrangement (SIA).听听
For employees who work varying number of hours across听the seasons, the SIA will mean they听benefit听from a regular amount of pay each period while it will offer regular outgoings for employers making budgeting easier.听听
Overtime in these arrangements is not paid as you go along throughout the year as it may be in hourly paid situations. However, come the end of the听financial year, you would need to collate all the employee鈥檚 timesheets for the year and calculate what they would have been due for those hours if they had been paid hourly as per the order.听听
If the salary听received听matches or is greater than the amount听calculated,听then you are doing everything you need to. However, if the payments made via the SIA equate to less than what the employee would have received had they been paid by the hour then you would听be required听to pay them a lump sum at the end of the听financial year听for the shortfall. 鈥�听
Holiday entitlement is calculated based on the number of days the employee works and the table summarising this can be found in the employers and workers guide linked at the bottom of this article. In addition to the number of days听stated听in the table, all workers are entitled to two special days of leave per听year:听Christmas Day and New Years Day.听听听
Timesheets are听required听within agricultural businesses. A monthly or weekly template is available online from the Wages Board. Once complete, the employee should return these to the employer who then has a duty to听retain听them for at least听three听years.听听
The responsibilities of the employer do include ensuring that workers are provided with the weather protective clothing that they need to be able to do their job听and also听that this clothing is repaired or replaced when no longer fit for use.听听
For anybody who is employing somebody new, a reminder that听they should be provided with a written statement of terms and conditions on or before their first day of work. There are exceptions for terms relating to pensions, training entitlement and disciplinary and grievance procedures which must be given no later than听two听months after their employment started.听听
5 top听tips听
- Check that the pay of all employees is meeting the听new听minimum听hourly rate as of 1听April听2026.听
- Check the level of qualifications workers have and if necessary, ensure you pay the top-up rate. If you are unsure what SCQF level a qualification is,听type the听qualification听followed by 鈥楽QA鈥� into a search engine and听this information should be accessible.听听
- Consider whether听moving employees onto a Stable Income Arrangement听would be of benefit to your business.听听
- Consult the for more info on Stable Income Arrangements听and holiday entitlement听or听contact your local听SAC Consulting听office听to discuss.听听
- Ensure timesheets are being completed and听retained.听听
Mhairi Dalgliesh,听Agricultural Consultant,听Mhairi.Dalgliesh@sac.co.uk
Posted by SAC Consulting on 16/04/2026
