The median pay increase across the economy remains at 2.5% in the three months to the end of April 2018, according to the latest monitored figures from IDR. The proportion of higher awards at or above 3% has increased with these awards accounting for almost a third of all the awards monitored in this period. This compares to just under a quarter of awards recorded at this level in our look at the figures in the three months to the end of January.
For the third consecutive month the median pay award across the whole economy remains at 2.5%, according to our latest analysis. This trend, monitored for the three months to the end of March 2018, is also evident in the private sector with the median remaining at 2.5%. A consistent median of 2.0% has also been seen within the not-for-profit sector.
Continue reading Pay settlements: March remains at 2.5%
The NHS pay offer is a significant deal that signals the end of the 1% cap on public sector pay rises and as such includes genuine improvements for existing staff. However it also involves future changes that may be less welcome for some. Under the proposed deal, headline rises for those at the tops of their bands are accompanied by changes to the pay structure which mean that staff who have not yet reached the tops of their pay bands would receive significantly higher earnings increases – via progression pay – over the course of the three-year deal. But from 2020 progression for new employees would be more limited than currently. Continue reading Proposed NHS pay deal: swings now, roundabouts later?
Bonuses remain an integral – albeit discretionary – element of the reward package on offer at many employers, particularly within the private sector: according to the ONS, the combined value of all bonuses paid in Great Britain reached a record level of £46.4 billion in 2016/17. Our recent survey of 30 mostly large employers across the manufacturing and primary sectors and private sector services looks at the design and typical payout levels of 41 bonus schemes – from comparatively simple all-employee schemes to more complex arrangements covering senior managers (eg Board members or executive team members).
The median pay award for the three months to February 2018 remained at 2.5% across the whole economy, with the private sector median also holding steady at 2.5%.
We are pleased to announce that Incomes Data Research has today accredited as a Living Wage Employer.
Our Living Wage commitment will see everyone working at IDR, regardless of whether they are direct employees or third-party contracted staff, receive a minimum hourly wage of £8.75 in the UK or £10.20 in London.
The Living Wage is estimated to be the level of hourly pay necessary for a minimum socially acceptable standard of living. It is voluntary and separate to the statutory National Living Wage, which for over 25s is currently £7.50 per hour.
Inflation is likely to only slowly abate over the coming year, according to the latest predictions from City economists. One of our panel of economic forecasters sees RPI inflation remaining at similar levels for most of the coming year, and another thinks it will rise a little before coming down later in 2018. Continue reading Forecasts indicate gradual drop in inflation levels
Premiums for shift pay continue to play an important part in reward packages for employees in many parts of the economy. Our recent survey of 83 mostly large firms across distribution, engineering, financial services, food manufacture, retail and the social care and housing sector found that over four fifths pay separate allowances, premiums or additions to staff who work shifts.
At a difficult time for parts of the retail industry, the National Living Wage (NLW) is exerting a strengthening influence over pay rates and other terms in the sector, according to the latest findings on pay and conditions in retail from IDR.
The latest instalment in the debate over which inflation indicator is the most appropriate for uprating benefits such as pensions took place in the High Court in January. The case, brought by telecoms firm BT, was that the company should be allowed to change provisions for uprating pension payments from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI), on the basis that the former had ‘become inappropriate’, according to the rules of the scheme. The case has implications for setting pay as well as pensions.