The level of pay settlements fell in April 2013, according to the latest provisional data from pay specialists XpertHR.
The median across-the-board pay rise in the three months to the end of April stands at just 2%, down from the 2.5% recorded for the three months to the end of March 2013, the latest survey data reveals.
In the largest sample of April 2013 pay awards available so far this year, XpertHR has analysed the details of 132 pay deals settled in the three months to April (89 in the month of April alone).
XpertHR's sample of pay awards effective in April 2013 includes a host of public-sector pay review body settlements that reflect the Government's policy of an average 1% pay award, which is effective for pay awards through to 2015. For most public sector employees, the 1% average award will deliver a higher pay increase than they received during the previous two-year pay freeze.
Private-sector pay awards in the key month of April, however, are no better than employees received last year. The median pay increase for private-sector employees is just 2%, down from 2.5% in the three months to the end of March 2013, but the same level as recorded in the three months to the end of April 2012. Pay awards at not-for-profit organisations are amongst the lowest, while at the top end are inflation-linked deals in the utilities sector.
The April findings are set against muted data for the first quarter of 2013, where we noted the following:
- The median across-the-board pay increase was 2.5%.
- Only one in five (20.3%) pay awards were higher than the previous pay award for the same employee group.
- The most common pay increase was 2%.
- Just over one pay award in 10 (11.9%) resulted in a pay freeze.
XpertHR Pay and Benefits editor Sheila Attwood said:
"The latest pay settlement data shows that April pay awards are lower than those concluded at the beginning of the year. The lack of a boost to pay settlements will be disappointing for employees, especially as retail prices index (RPI) inflation increased in March and is expected to continue rising into the summer. All the evidence now points to 2013 being another year of weak pay awards."
