One Fifth of Pay Reviews in UK Result in Pay Freeze

UK AUG-OCT MEDIAN PAY AWARDS 2.0% VS 1.0% SEP: XPERTHR

PAY FREEZES ACCOUNT FOR 21.1% AMONG SAMPLE: XPERTHR

• The headline pay awards increased to 2.0% in the three months to Oct, following an upwardly revised figure for Sep (up from 0.0% to 1.0%).
• A fall in the proportion of pay freezes shifted the headline rate up to positive territory, however private-sector pay awards continue to record levels below the ones seen last year.
• However, among the total sample of pay awards, 21.1% are still pay freezes.
• The report noted that in a matched sample, 51.4% of pay settlements were lower than in the same group of employees a year ago.
• Annual private sector pay awards eased to 2.0% in Oct, down from 2.5% recorded in Oct 2019, while public sector pay awards were unchanged at a median 2.5%.
• XpertHR noted that many firms are struggling with funds to reward their employees as the current crisis weighs on business activity.