As 2012 comes to an end there is no sign of a sustained increase in the level of pay awards. Instead, 2% has emerged as the benchmark pay award over the autumn months, according to data released today from pay specialists XpertHR.
The median basic pay increase (which excludes performance-related pay, bonuses and progression payments) in the three months to the end of November 2012 stands at 2% the survey finds, unchanged on the reading for the previous three-month period.
There is no let-up in organisations freezing pay for employees either – almost a quarter (23.7%) of pay awards in the three months to the end of November 2012 resulted in a pay freeze. Over the year to the end of August 2013, 8.7% of employee groups are expected not to receive a pay rise.
The figures come just ahead of the busy January wage bargaining period, when around a quarter of all pay settlements take effect. January is key for pay awards in the manufacturing and production sectors – employers in these sectors predict a 3% median pay award during 2013.
XpertHR Pay and Benefits editor Sheila Attwood said:
"Pay awards have ended the year on a low note, with the 2% median increase well below trend, and inflation. Even with the best intentions, employers will be bound by what they can afford to pay over the next year. Private sector employers are predicting pay increases in the region of 2.5% over the coming year, and we expect a continuation of pay freezes for some and few awards worth more than 3%."
