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 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%.
The median pay award across the whole economy rose to 2.5% in the three months to January 2018, according to the latest monitoring figures from IDR. This is the highest we have seen since the quarter to December 2015, when many firms pushed up pay rates in advance of the introduction of the Government’s National Living Wage the following April. In the two years since, the median pay award has only risen above 2% on three occasions.
The last three months of 2017 produced an increase in pay rises across the economy, with the median rising to 2.3%. Awards in the private sector show a median of 2.5% for this period, which is higher than the overall median of 2.2% for this sector during 2017. The elevated median this time is the product of some higher awards, for instance at EasyJet and Ford.
Incomes Data Research has monitored 667 pay reviews for 2017, covering over 6,900,000 employees. The median increase for the whole economy remained the same at 2% from the previous year. The private sector however has risen from 2% to 2.2% in 2017. This has been especially noticeable at the lower quartile which showed an increase of 0.5%, whereas the upper quartile fell slightly from 2.78% to 2.75%. Across the whole economy, the lower quartile increased by 0.5% and the upper quartile rose by 0.1%, suggesting modest upwards pressure on pay, which may be due to higher inflation rates across 2017.
According to our most recent detailed quarterly analysis, the median pay award across the whole economy was 2% in the three months to October 2017, according to the latest monitoring figures from IDR. See the full quarterly analysis here.
This year’s survey of pay and conditions in contact centres has found that median pay settlements have increased slightly this year. Meanwhile, last year’s improvements in recruitment and retention may only have been temporary. Continue reading Call centre employers start to see upward pay pressure
The Budget on 22 November sparked a debate over the prospects for wage growth over the coming period. The Bank of England is on one side, while on the other stand the government’s Office for Budgetary Responsibility (OBR) and the Institute for Fiscal Studies (IFS).
Earlier, in announcing its decision to raise interest rates marginally on 2 November, the Bank argued that while pay increases are currently subdued – mostly because employment has been growing in lower-paid occupations and industries – it expected earnings growth to strengthen during 2018. This will occur, the Bank said, ‘as the tightening labour market starts to put more widespread upward pressure on wage demands’. Continue reading Viewpoint: ‘There are bad times just around the corner…’
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