Managers face larger regional pay gap than manual staff

Regional
pay variation for managers is larger than that of manual staff, according to a
Office of National Statistics report.

The
report claims the difference occurs because employers base managerial salaries
on local house prices.

The
survey, published in Incomes Data Services’ Management Pay Review, shows management
salaries regionally differ by up to 50 per cent compared to 30 per cent for
manual employees.

The
average earnings of managers in large organisations in the UK is nearly
£113,000. But the average managerial pay in London is almost £139,000, compared
to Scottish managers, who earn on average less than £58,000 a year.     

The
IDS report says: "Rather than managerial pay running at similar levels
across most of the country while manual wages vary greatly, the reverse seems
to be the case."

The
report claims regional differences are linked to employers setting managerial
pay based on the local cost of living, in particular house prices. IDS compared
regional managerial salaries to house prices and claimed "a remarkably
close fit".

A
nationwide gender pay gap is also highlighted. Male corporate managers in the
UK earn on average £40,680 a year, compared to female corporate managers who
earn just £28,831 a year.

www.incomesdata.co.uk

www.statistics.gov.uk

By Paul Nelson

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