Settlements in brief: median at 2% for May

Our latest analysis of pay settlements shows the median falling back to 2% in May. However the interquartile range, where half of awards are set, remains at between 1% and 2.8%. This partly reflects a wide range of pay outcomes, with increases monitored in the latest period ranging from a pay freeze to 10.5%. The analysis is based on 130 pay settlements monitored by IDR in the three months to the end of May.

Pay settlement data - three months to end of May 2017
Whole economyPrivate sector
Median2.0%2.4%
Average2.2%2.5%
Interquartile range1.0 to 2.8%1.9 to 2.9%
Based on 130 settlements covering 3.3M employees in total.

The median had risen to 2.4% in the three months to the end of April, under the influence of more awards worth 3% and above. Many of these were aimed at bringing lowest pay rates in line with the new National Minimum and National Living Wages. Indeed a closer look at private sector awards in the latest period shows that the median here is still at 2.4%.

Our next full quarterly analysis will be in Pay Climate, release date Thursday 7 September.

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