MNI: UK Pay Awards Steady At 4 Year High In Feb: XpertHR

-UK Dec-Feb Pay Median Pay Deals 2.5%; Matches Jan high 

By Jai Lakhani

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

came in at 2.5%, unchanged from the January's four-year high, a survey by

XpertHR found. 

     The pickup in pay settlements was reported across the private sector,  with

employers across the manufacturing, production and services industries

pencilling in a 2.5% benchmark pay award this year -- the highest since March

2014. 

     The early signs are that a combination of what other organisations are

paying, recruitment and retention issues and inflation is driving the higher

average pay increases.

     Just over half (57.3%) of pay awards were higher for the same employees

this year compared to last, with 26% of awards still at the 2% level. 

     The pickup in pay deals was limited only private sector deals, however,

with public sector pay agreements only set to come into force in April when the

new fiscal year starts.

     "It is several years since employers have been so optimistic about

prospects for pay rises. If private-sector pay awards stick at 2.5% over the

course of the year, this will mark the first time since 2012 that increases have

been consistently above 2%," 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 February Inflation projections

were based on headline average weekly earnings growth rising to 3% in 2018 from

2.5% in 2017 and on up to 3.25% in 2019. 

     Official data, released Wednesday, reported the first non-negative real

wage growth for the first time after nine consecutive months of erosion. Total

real AWE were flat in the three months to January. February's data is likely to

build on this as CPI fell by more than expected to 2.7%, down from 3.0% in

January.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

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

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