Category Archives: Pay Trends

Explaining the variation in gender pay gap figures

Around 10,000 firms have published their gender pay gap figures in line with the government’s deadline and there have been numerous headlines about those with the highest gaps. But what does the data really tell us? Here, we look at how and why the figures vary, with an emphasis on sectoral variations, as well as the impact that collective bargaining appears to have on the size of gender pay gaps.

Employers’ publication of their gender pay gaps has sparked a national conversation about the relationship between gender and pay. To date 10,249 firms have published their figures. IDR analysis of these shows an average gap of 14.4% between the average pay for men and that for women. There are, however, significant differences by sector.

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Pay reviews – More deals at 3% or above

The proportion of pay awards at or above 3% has increased, according to the latest analysis from IDR, with these awards accounting for over a third of all settlements monitored in the three months to the end of April 2018. This compares to just under a quarter of awards recorded at this level in the three months to the end of January. The median pay increase across the economy remains at 2.5%. This is the same increase recorded in the last five three-month rolling periods. The interquartile range, where half of awards are set, has widened slightly to between 2% and 3%. The latest figures are based on 96 pay awards, covering over 1.5 million employees.

Continue reading Pay reviews – More deals at 3% or above

Viewpoint: pensions court rules RPI not ‘inappropriate’

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.

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Viewpoint: ‘There are bad times just around the corner…’

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…’

Settlements in brief: private sector median unchanged at 2.5%

Our latest pay settlement analysis shows the private sector median is unchanged at 2.5% in the three months to the end of August. Meanwhile the whole economy median has fallen from 2.4% in July to 2% in August, owing to the inclusion of some lower-level awards in the not-for-profit and public sectors. Continue reading Settlements in brief: private sector median unchanged at 2.5%

Settlements rise to 2.4%, highest level so far in 2017

According to the latest monitoring figures from IDR, the median pay settlement across the economy rose to 2.4% in the three months to July. This is the highest we have recorded so far in 2017, up from 2% in the previous three rolling periods. The latest figures are based on 75 pay settlements, mostly at organisations in the private sector.

For the full article see http://www.incomesdataresearch.co.uk/subscribers-2/idr-pay-settlement-levels/