- In the three months to the end of October 2023, the whole-economy median pay award stands at 6%, up from 5.5% in the previous quarter
- Median public-sector pay awards over the year to October 2023 stand at 6.5% - the highest level since 1991
The latest data from XpertHR shows that the median basic pay award in the three months to the end of October 2023 stands at 6%, half a percentage point higher than in the previous quarter.
This rise can be attributed to a substantial increase in pay awards in the public sector. The median basic increase in the 12 months to the end of October 2023 is 6.5%, up from 4% over the 12 months to the end of October 2022. This is the highest public-sector median since 1991. By contrast, the median pay award in the private sector over the same period is 6%.
Latest rolling quarter findings:
Based on the outcome of 26 pay awards with effective dates from 1st August to 31st October 2023, representing close to half a million employees, XpertHR also found:
- Slight uptick in the median award. The median pay settlement for the three months ending in October has risen to 6%, up from 5.5% in the previous quarter and now matches the level seen in the first half of the year.
- Interquartile range unchanged. The interquartile range spans two percentage points. Similar to the previous rolling quarter, the lower quartile remains high at 5%. The upper quartile is at 7%.
- Half of settlements are higher than last year. Based on a matched sample analysis, 54% of deals were worth more than was awarded in the 2022 settlement. Three in 10 were lower (31%), and less than one in 10 (8%) were worth the same.
- Public sector leads the way. Pay awards in both the public and private sectors are higher than they were a year ago, but public sector outcomes continue to sit higher than those in the private sector.
Sheila Attwood, XpertHR senior content manager, data and HR insights, said: “As we approach the end of the year, many employers now have their sights set on 2024. Most organisations with January settlement dates will have already completed the bulk of their preparatory work for their next pay review, while employers with settlements due later in the year may already be thinking about this, gathering information in advance of finalising their pay budgets.
“For employers and employees, the significant drop in CPI from 6.7% to 4.6%, the largest in over thirty years, is a welcome relief. This reduction enables more balanced and long-term decision-making, with employers now exploring ways to retain existing staff through enhanced benefits packages and opportunities for upskilling.”