PAY DATA
Early January pay deals focus on 2%
Basic pay deals across the UK economy are currently running at 2%, as measured by the median settlement level, according to the latest figures from IDSPay.co.uk.
The IDS analysis of the January 2010 wage round found a number of examples of companies returning to paying increases this year, whereas in 2009 they froze pay. In other instances, slightly higher-than-average awards have been made under a number of long-term deals. “While private sector settlement levels may recover, in line with an improvement in the economic outlook, public sector pay is under intense restraint,” IDS said.
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Pay freezes
Wage freezes continue to figure, and these currently make up around a third of awards monitored by IDS. Most freezes have been implemented in sectors hardest hit by the recession, including construction and parts of manufacturing.
Summary of key settlement data
For the three months to the end of January 2010, based on 46 settlements covering 187,497 employees in total, the key statistics are as follows:
Whole economy median: 2.0%
Whole economy average: 1.8%
Whole economy interquartile range: 0% to 2.5%
Manufacturing and production median: 2.0%
Private services sector median: 2.0%
A final word
“Most of the private sector deals in our latest analysis were reached against a backdrop of recession and low inflation. But the rise in the cost of living and the recovery in manufacturing, as well as the official end of the recession, represent some restoration of modest upward pressures on pay. If these trends strengthen, the impact will be seen more clearly as we move towards the April pay round in the private sector. Meanwhile the public sector is subject to a tighter squeeze than has been seen for years.” - Ken Mulkearn, Editor of IDS Pay Report.
Want to know more?
IDSPay.co.uk is a new online source of all the remuneration data collected by IDS, on pay settlements, pay levels and executive compensation. Visit www.IDSPay.co.uk.
IDS Pay Report, published fortnightly, is the “UK's leading source of research and analysis on pay and benefits across the economy”.
Incomes Data Services is the “leading UK information and research service on employment issues, providing a range of publications for employers, trade unions, government departments and other agencies”. For more details visit www.incomesdata.co.uk.