Pay trends down in engineering in 2024

The median pay award across the engineering sector fell from 5.7% in 2023 to 4.3% in 2024, according to the latest research from IDR. The largest cluster of awards occurred in the 4% to 4.99% bracket, with around two-fifths (41%) of engineering pay increases occurring at this level. Our analysis, which was based on a sample of 59 pay awards across the engineering sector, also found that the proportion of high-end awards worth 5% or more was much lower last year when compared to 2023. Around a third (32%) of all engineering pay increases in 2024 were worth 5% or more and this is a much smaller proportion than in 2023 when over four-fifths (81%) of increases were at this level. The highest increases for engineering workers occurred in the chemicals, pharmaceuticals and oil; energy and water; and other manufacturing sub-sectors where the median was 5.0% in each case.

Over half (54%) of pay awards in our sample were collectively bargained. Employees covered by collective agreements were more likely to receive higher increases than those working for organisations with no trade-union bargaining. Pay awards for employees represented by unions were 0.3 percentage points higher at the median than those without union representation (4.5% and 4.2% respectively).

Elsewhere, our study of pay and conditions in engineering gathered insights from employers on the most prominent factors behind their pay decisions for 2024. Over four-fifths (85%) of respondents highlighted affordability as a ‘major’ or ‘substantial’ influence on their pay decision. Cost of living and inflation pressures also featured highly – as agreed by 81% and 78% of respondents respectively.

Recruitment and retention

Participants of our engineering survey were also asked to describe any labour market challenges. Almost half (46%) of the sample cited recruitment issues, and a quarter of respondents advised that they are struggling to retain staff. These proportions have fallen since our last study in 2023, however many employers reported that professional engineers remain one of the most difficult occupational areas for recruitment and retention. Applicants not having the right skills and/or experience for the role was cited as the most common reason for difficulties with recruitment, as agreed by 41% of survey respondents.

About the research

The survey was conducted between September and October 2024 and gained 29 responses from mostly large and medium-sized private sector firms employing 214,370 employees in total. 

Find out more

A full report of findings from the survey provides details of salary levels for various jobs across manual and white-collar engineering functions, from operator roles to team leaders and senior managers. It also covers pay increases, recruitment and retention issues, working hours, holiday entitlement, shift patterns and allowances, bonuses and pension provision.