Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Pay & benefitsPay settlements

Employers cut real-terms pay despite signs of recovery

by Rob Moss 27 Sep 2013
by Rob Moss 27 Sep 2013

Typical pay awards continue to be significantly lower than inflation despite the brighter economic outlook, according to annual XpertHR research published today.

The survey, covering pay awards over the year to the end of August 2013, found that the average pay deal – based on deals covering 7.3 million workers, or almost one in four of the UK workforce – was 2%, well below the 3.3% inflation measured by the Retail Prices Index (RPI) in August 2013.

The median pay increase over the period was just 2%, compared with 2.3% during the previous 12 months.

XpertHR pay and benefits editor Sarah Welfare said: “Our research provides further evidence that pay packets have taken a huge hit during this recession and the value of pay increases in real terms has been eroded. In fact, pay awards appear to have been slightly lower in value this year than the last. The current evidence points to more of the same, with no signs yet of any upward pressures on pay.”

Other key findings, based on a total sample of more than 1,200 pay deals, included the following:

  • Private-sector pay awards were worth a median of 2%, compared with 1% in the public sector. In the previous year, private-sector deals were worth 2.5% while the public sector imposed a pay freeze (0%).
  • Wage freezes are now less common. So far in 2013, they have made up 11% of all pay awards, compared with 18% in 2012 and 38% back in 2009.
  • Manufacturing pay deals (at 2.3%) have been consistently higher than those in the services sector (2%) over the year.


Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

XpertHR has also published its monthly report on pay awards over the most recent quarter, covering the three months to the end of August 2013, which also found the median basic pay award over this period was 2%, unchanged since the three months to the end of April 2013.

The full report, Annual review of pay trends 2013, includes a detailed comparison with the previous year. It looks at pay awards alongside earnings growth and inflation and how awards are being weighted towards lower paid workers. There is also a full analysis of pay freezes throughout the recession.

Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

previous post
One-third of GPs lack access to occupational health services
next post
Surrogacy: Europe paves way for both mothers to get maternity rights

You may also like

Engineers prioritising benefits over pay

14 Jul 2025

Workers with second jobs at an all-time high

11 Jul 2025

Firms’ salary secrecy means ‘they lose out on...

10 Jul 2025

NHS 10-year Health Plan sets out vision for...

3 Jul 2025

Living wage pushes up spring pay settlements

2 Jul 2025

Why bosses must set pay independently

2 Jul 2025

Reforming paternity leave could benefit UK by £13bn...

30 Jun 2025

Bank of England says NIC rise is dampening...

27 Jun 2025

Graduate pay versus the living wage: an HR...

25 Jun 2025

Pay awards remain ‘cautious’ in uncertain economy

25 Jun 2025

  • Empower and engage for the future: A revolution in talent development (webinar) WEBINAR | As organisations strive...Read more
  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+