Pay awards expected to remain subdued into 2014, says XpertHR

PAY DATA

Pay awards expected to remain subdued into 2014, says XpertHR

Wage settlements during the remainder of 2013 are likely to average no more than 2%, according to the latest analysis from pay specialists XpertHR.

The study reveals that XpertHR’s headline measure of settlements – the median pay rise – remains at 2% for the fourth consecutive rolling quarter. The analysis covers 53 pay awards effective in the three months to the end of July 2013.

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The research also reveals a divergence of pay deals across different sectors of the economy:

• Public sector – deals are focused on the government's policy of a 1% average pay award.
• Private sector – there is a wider spread of deals, ranging between a 10% pay cut and 3.5% pay rise.
• Pay awards in manufacturing (2.6%) are higher than in the services sector (2%).

A final word

"The number of employers awarding pay rises that match or exceed inflation remains low, with the majority of pay awards falling short of the increase in prices. For employees there is little prospect of higher pay rises as our research suggests that 2% will remain the benchmark pay award for the remainder of the year." - Sheila Attwood, XpertHR Pay and Benefits editor.

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The pay award statistics are based on the “largest sample of pay deals collected in the UK – every year XpertHR collects details of in excess of 1,600 pay settlements”.

XpertHR is the “UK's most comprehensive online source of legal compliance, good practice and benchmarking information made available to HR professionals as a single subscription service.” For more information visit www.xperthr.co.uk.