UK wages to rise by 2.9% in 2016 – Willis Towers Watson

UK wages are set to rise by an average 2.9% in 2016 following an average increase of 3% last year, according to data from Willis Towers Watson. The firm says that UK workers at all professional levels continue to feel less pressure on disposable income as salary increases outstrip inflation. The report provides salary increase budget information for a large selection of economies across the globe, with the UK’s 2.9% consistent with budgeted rises in Germany but higher than other European countries including the Netherlands (2.5%), France (2%) and Switzerland (2%).

Ian Nichols, senior consultant at the firm, said:

‘It is no longer the case that inflation solely drives salary budgets. Pay growth is increasingly affected by factors such as competition for talent, economic growth expectations, affordability and performance.’

‘Salary Budget Planning Report’, Willis Towers Watson, May 2016. The survey was conducted in February and March 2016. Approximately 6,500 sets of responses were received from companies across 100 countries worldwide. The latest report is available to purchase in full, here.