All posts by Louisa Withers

Settlements in brief July 2016: Median holds steady at 2%

Our latest analysis of pay settlements, for the three months to the end of June 2016, shows the median holding steady at 2%. The interquartile range – where half of all awards sit – has narrowed slightly to between 1% and 2.6% in the latest period, driven by a greater clustering of outcomes in the not-for-profit sector.  Continue reading Settlements in brief July 2016: Median holds steady at 2%

Statutory minimum rates

The National Minimum Wage (NMW) and National Living Wage (NLW) are set annually by the Government based on recommendations from the Low Pay Commission. The table below sets out current and historical rates. The NLW, which was introduced in April 2016, applies to all staff aged 25 and over, while younger (non-apprentice) staff of at least school-leaving age are covered by the appropriate NMW rate for their age group. The apprentice rate applies to apprentices who are under 19 or in the first year of their apprenticeship. Apprentices who are 19 or over, or have completed their first year, are entitled to the appropriate minimum wage rate for their age. Continue reading this free article

In focus: Payments for making unsocial hours

Pay for working unsocial hours is in the news, as a key issue in the junior doctors’ dispute with the Government, and as one of the terms some lower-paying employers are reducing to offset the new ‘National Living Wage’ for employees aged 25 and over. These examples create the impression that the pressures on unsocial hours pay are mostly downward. However, this is not universally the case, with premiums being maintained in other important sectors like call centres and engineering. Continue reading In focus: Payments for making unsocial hours

Lawyers enjoy higher pay rises

A recent survey of pay for in-house lawyers by IDR found that median salary increases ranged from 2.35% for qualified solicitors to 2.75% for deputy general counsels. We found higher pay increases in the private sector than across the public and not-for-profit sectors. Recruitment and retention issues appear to be muted. Few employers reported difficulties recruiting lawyers, with any such problems typically occurring at more junior levels. Meanwhile just a fifth of employers are experiencing problems retaining lawyers (generally at senior legal adviser level and below). Our analysis shows significant variations in salary levels by sector, as well as variations by region, company size, company turnover and PQE. Continue reading Lawyers enjoy higher pay rises

Graduate labour market recovers

The market for graduate jobs has become more buoyant over the last two years, driven by a recovery in private sector recruitment. This is one of the key findings of our survey of graduate salaries. The survey found that the number of graduate recruits rose by 11% in 2015 and is projected to rise by a further 17% in 2016. Meanwhile applications for graduate vacancies have risen at a faster rate, ensuring that competition for each placement remains stiff. Continue reading Graduate labour market recovers

Update on the National Living Wage

Since our last special report on the National Living Wage (NLW), in February, we have been continuing to monitor the effects of the new statutory minimum rate of £7.20 an hour for employees aged 25 and over. Our main finding is that, despite the age limit, many employers have been applying the new minimum to staff aged between 21 and 24 as well, and in many cases to all staff. This is particularly the case in retail, though other companies are looking to alter the age profiles of their workforces, possibly to make future use of the age distinctions contained in the minimum wage structure. Continue reading Update on the National Living Wage

Whole economy median pay settlement of 2% masks sectoral variation

The median pay settlement across the whole economy has remained steady at 2% in the three months to April 2016, according to the latest monitoring figures from IDR’s Pay Climate. The median award has been constant for four consecutive rolling periods, since the three months to January. However, this figure is not necessarily representative of awards across the different parts of the economy where pay outcomes have varied. In this key period for pay setting, higher awards have been reached in the private services sector where the median is 2.5%. Meanwhile, lower awards have been paid in the not-for-profit sector as well as in the public sector, most of which is still formally subject to the Government’s 1% pay cap policy, though variations have begun to appear. Continue reading Whole economy median pay settlement of 2% masks sectoral variation