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Stuart Gentle Publisher at Onrec

Pay awards remain low

Pay settlements across the economy remain low, pitched at just 2% in the three months to the end of June 2014, according to pay specialists XpertHR. Pay awards have been at this level since the three months to the end of April; in the first quarter of the year pay awards stood at 2.5% at the midpoint

Pay settlements across the economy remain low, pitched at just 2% in the three months to the end of June 2014, according to pay specialists XpertHR. Pay awards have been at this level since the three months to the end of April; in the first quarter of the year pay awards stood at 2.5% at the midpoint.

The figures for the latest rolling quarter include the important month of April - around 40% of pay awards during the year take effect in this month alone. April is particularly popular for pay awards in the public sector, as well as not-for-profit organisations. Pay awards in these two sectors remain stubbornly low - the public sector as a result of Government pay policy to limit awards to an average of 1%, and the not-for-profit sector from the squeeze on funding.

Across the private sector, findings on pay awards in the three months to the end of June 2014 include the following:

  • Pay freezes were in place in 13% of organisations.
  • The most common pay award was 2% (made at 27.1% of organisations).
  • More than a quarter (26.7%) of pay awards were worth the same or more than the 2.6% June 2014 RPI inflation figure.
  • Manufacturing-and-production firms recorded a median 2.5% increase, compared with 2% in private-sector services companies.


XpertHR Pay and Benefits editor Sheila Attwood said:

"Pay settlement levels remain subdued, with little sign from employers that there will be an upturn over the remainder of the year. Although some employees will receive a 3% increase as a result of the national minimum wage increase in October, for the majority of employees pay awards around the 2% to 2.5% mark will remain the norm."