Annual pay reviews remain subdued, according to the latest data released today by analysts at XpertHR. In the June 2015 quarter, the median pay award was worth 2%. This is unchanged since the three months to the end of April 2014. While pay freezes are much more of a minority pursuit than during the recession – accounting for just 7% of all wage deals in the current quarter – businesses are sticking firmly to only the most modest of increases for employees. Employers are also not straying far from the norm, with pay awards closely bunched around the 2% level. In fact, half of all pay awards are worth between 1.5% and 2.5%. Just one pay award in six (16%) is pitched at 3% or more.
By sector:
XpertHR editor Sheila Attwood said:
‘The going rate for pay awards across the economy is firmly stuck at 2%. However, with the Chancellor announcing that pay awards in the public sector will be restricted to 1% for a further four years from 2016-17, the divide between the value of increases in the public and private sectors is likely to prevail for many years to come.’