The average pay settlement returned to 6% in the three months to the end of October 2023, following a slight dip in the previous rolling quarter.
According to XpertHR, the median basic pay award in August-October 2023 was half a percentage point higher than the 5.5% seen in the previous three-month period. It attributed the increase to higher than usual pay awards in the public sector.
The median basic increase in the 12 months to the end of October 2023 was 6.5%, up from 4% over the 12 months to the end of October 2022. This is the highest public sector median since 1991, and higher than the median pay award in the private sector, 6%.
Although XpertHR’s sample was fairly small, 26 pay settlements, the awards covered half a million employees.
The lower quartile was high, at 5%, while the upper quartile was at 7% on average.
Half of settlements (54%) are higher than last year. Thirty-one per cent were lower, and 8% were worth the same.
Pay settlements
Sheila Attwood, XpertHR senior content manager, data and HR insights, said: “As we approach the end of the year, many employers now have their sights set on 2024. Most organisations with January settlement dates will have already completed the bulk of their preparatory work for their next pay review, while employers with settlements due later in the year may already be thinking about this, gathering information in advance of finalising their pay budgets.
“For employers and employees, the significant drop in CPI from 6.7% to 4.6%, the largest in over thirty years, is a welcome relief. This reduction enables more balanced and long-term decision-making, with employers now exploring ways to retain existing staff through enhanced benefits packages and opportunities for upskilling.”
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