Although a small increase on the median award recorded in the previous rolling quarter (1.5% in the three months to the end of October 2016), this latest figure is below the 2% norm we have seen over the past few years.
By sector, pay awards in the private sector are higher than the whole-economy level, at 2%. Public sector awards continue to cluster at 1%.
Latest pay award findings
Based on a sample of 85 basic pay awards effective between 1 September and 30 November 2016, we find the following:
- One pay review in eight (12.5%) continues to deliver no increase for employees.
- Further evidence of the subdued nature of pay bargaining is provided by an analysis of how the latest pay reviews compare with what was awarded to the same employees a year ago. This reveals that just 22.4% of the latest pay reviews were worth more than the same employees received at their previous review. More than four in 10 (43.1%) were lower than last year, while one-third (34.5%) were at the same level.
- The median pay award across the whole economy is 1.6%, with the middle half of pay awards (the interquartile range) worth between 1% and 2%.
- Within the private sector, a 1.6% award is recorded for pay deals in private-sector services, but this rises to 2% among manufacturing and production employers.
Over the 12 months to the end of November 2016, the median pay award in the private sector is 2%, compared with 1% in the public sector.
XpertHR pay and benefits editor Sheila Attwood said:
"Employers have acted with caution over the past year when it comes to rewarding employees, and we expect this to continue when pay bargaining gets into full swing again in the New Year.”
