UK Pay Awards Over Next 12m Likely At Median 2.0%: XpertHR

Pay Awards Between July and September Steady at 2% Median Too

By Jamie Satchithanantham

     LONDON (MNI) - UK pay deals held steady at a median 2.0% in the three

months through September and look set to remain this way for the majority of

next year, a survey by XpertHR found.

     In September, RPI inflation held firm at 3.9%, the highest level in over

five-and-a-half years, meaning that wages are currently growing at virtually

half this level.

     With a 2% median across the whole economy, the middle 50% of pay awards was

worth between 1% and 2.5%. Within the private sector, this 2% figure was also

prevalent among manufacturing and production firms as well as service sector

firms.  

     Looking forward, employers do not foresee any material change in the next

twelve months. Private sector employers are forecasting a median 2% pay award

over the next year (defined as the 12 months through to the end of August 2018),

which would extend the 2% pay award median in place since January 2013.   

     Of the 275 private sector firms surveyed, 77.5% said they were likely to

award their employees a pay rise - most likely at the same level as they paid

over the last year, despite the rise in inflation.   

     There were signs of some upward pressure on pay growth. Half of all firms

surveyed expected pay growth between 1.8% and 3.0% and 26% said they were

planning to increase pay by more than 3%.

     "The 2% pay award is all too familiar to employees, with employers ignoring

pressures from rising inflation and a tight labour market to keep a lid on pay

rises," Attwood said.

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

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