In the three months to the end of November 2015, the median pay award was worth just 2%. Half of all pay settlements were worth between 1% and 2.5%. In the private sector the median pay award also stands at 2%, although the middle half of pay awards fall within the higher range of 1.5% to 2.9%.
Pay awards in the public sector are calculated on an annual basis (as they are bunched in just a few months of the year). In the year to the end of November 2015, pay awards in the sector were worth a median 1.5%, with half of all awards worth between 1% and 2%.
XpertHR has also calculated how the different industry sectors have fared over 2015 to date. The majority have recorded a median 2% pay award, but there are a couple of exceptions. The construction sector tops our table, recording a median 2.5% pay award this year, and the only sector higher than the whole-economy median. At the other end of the scale, the not-for-profit sector is the only one falling below the norm, with a median pay award of just 1.5%.
The significance of the 2% pay award is remarkable: 28% of all pay awards so far this year have been worth 2%. The second most common pay award is 2.5%, accounting for 10.2% of all deals. With 2% also the figure that employers have told us that they will be focusing on in 2016, we are not expecting movement from this as the median pay award any time soon.
XpertHR pay and benefits editor Sheila Attwood said:
"Pay awards have been centred around 2% for several years now, and there is no reason to believe that this will change as we move into the new year. Private-sector employers have forecast a median 2% pay award next year, and although inflation is expected to rise during the year, employers continue to focus on their ability to pay when it comes to setting the value of any increase."