MNI: UK April Pay Awards Steady At 4-Year High: XpertHR

--UK Feb-Apr Pay Median Pay Deals 2.5% 

By Jamie Satchi

     LONDON (MNI) - UK median pay deals in the three months through April, the

busiest bargaining month of the calendar year, came in at 2.5%, unchanged from

the joint four-year highs seen so far this year, a survey by XpertHR found. 

     The median pay award across the whole economy was 2.5% between February and

April, reported XpertHR, with the middle half of pay awards (the interquartile

range) worth between 2% and 3%.

     Of the 168 basic pay awards sampled, the majority were from the private

sector with pay bargaining in the public sector, which typically kicks off in

April, "slow to start this year"

     Public sector pay review bodies are yet to be published and the civil

service pay guidance, typically out in March or April, has not been issued,

according to XpertHR.

     April is most commonly when pay settlements take place. Around 40% of pay

settlements in any one year take effect in the month, with this share jumping up

to more than 60% for deals in the public sector.

     Over the past five years public sector pay growth has centred around the

1.0%-mark. However, recent relaxation of the imposed pay cap could result in pay

increases surpassing this threshold -- already, the lowest paid local government

employees have received a 9.2% increase, effective from last month.

     On a sector basis, Pay awards in the manufacturing-and-production sector

have risen to 2.9% in the latest rolling quarter, their highest level since

April 2012. The services sector median pay award of 2.5% is unchanged on last

month's figure. 

     "Our figures this month confirm the upturn in pay settlement levels in

2018. Recruitment and retention pressures, and therefore salaries in competitor

organisations, are helping to drive up settlement levels," Sheila Attwood,

XpertHR pay and benefits editor, said

     The Bank of England Monetary Policy Committee's central forecast is for a

pick-up in earnings growth this year. The BOE's May Inflation projections were

based on headline average weekly earnings growth rising to 2.75% in 2018 and on

up to 3.25% and 3.5% in 2019 and 2020 respectively. 

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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