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+

National living wageLatest NewsInflationLabour marketPay settlements

National living wage hike drives median pay award

by Rob Moss 24 Jul 2024
by Rob Moss 24 Jul 2024 Alexey Fedorenko/Shutterstock
Alexey Fedorenko/Shutterstock

The impact of April’s 9.8% increase to the national living wage continues to affect the median basic pay award, with it continuing to remain almost three percentage points above inflation.

The latest data from Brightmine shows the median basic pay award in the three months to the end of June 2024 was 4.9%, unchanged from the previous rolling quarter’s revised figure.

With the Bank of England reaching its 2% inflation target in May and June, pay awards are expected to continue to adjust accordingly, with Brightmine predicting a decrease in pay settlement levels in 2025.

Median pay award July 2024

Junior doctors pay talks begin in effort to avert further strikes

Less than a third to award above-inflation pay rises in 2024

Pay awards at lowest level in 18 months

The Labour government has pledged to change the Low Pay Commission’s remit to consider the cost of living and to remove age-based minimum wage rates for adults.

This would mean 18- to 20-year-olds currently on the national minimum wage of £8.60 per hour receiving the national living wage (NLW) of £11.44 (an increase of one-third), although the LPC and the Treasury could avoid such a steep change by phasing it in over time.

The Conservatives twice reduced the age threshold for the NLW: from age 25 to 23 in 2021, and then to 21 this April. Labour may similarly choose to reduce the impact of its policy by reducing the age threshold in stages.

Sheila Attwood, senior content manager at Brightmine, formerly XpertHR, said: “Our headline measures indicate broad stability of pay awards and we can expect this pattern to persist throughout the year. Settlements are more tightly bunched compared to this time last year, with fewer exceptionally high pay awards being observed. As we continue to see inflation levels stabilise, we foresee a more consistent and predictable approach to employee compensation moving forward.

“The government typically announces uplifts to the national minimum wage rates in November each year. Organisations with employees paid these rates can start to model what the proposed changes would mean in terms of their pay budgets, particularly if the removal of the age-based adult rates is confirmed.”

Last week the Office for National Statistics announced that annual growth in average regular earnings had slowed to 5.7% in the three months to the end of May, its slowest rate since August 2022.

Based on 145 pay settlements that came into effect in the three months to the end of June, covering 370,000 employees, Brightmine found that one in six pay deals exceeded 7%, mainly those for NLW employees. Excluding these, the median pay settlement was 4.3%.

Around half (47.3%) of all settlements that came into effect in the latest rolling quarter are worth between 4% and 5%, with 4% being slightly more common.

However, many employees saw pay awards worth less than their 2023 settlement. Three-fifths (61%) of pay deals in a matched sample analysis by Brightmine were worth less than the award provided to the same employees last year.

Over the weekend, Rachel Reeves, the chancellor, hinted that the Treasury could accept recommendations from the public sector pay review bodies, which are expected to suggest a 5.5% increase in pay for NHS staff, teachers, police and prison officers.

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.

 

Reward, compensation and benefits opportunities


Browse all comp and benefits jobs

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
Unwanted contact during sick leave: What are the boundaries?
next post
DWP fleshes out welfare reform plans

You may also like

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

NHS Scotland staff accept two-year 8.2% pay deal

16 May 2025

Nurses threaten strikes if pay demands not met

12 May 2025

Private sector median pay increases remain at 3.5%

6 May 2025

Public sector staff could be in line for...

28 Apr 2025

Confidence returning to jobs market, data shows

28 Apr 2025

What will reward look like in 2035?

28 Apr 2025

NI increase has not caused ‘knee-jerk reaction’ in...

23 Apr 2025

Scottish Water workers strike in dispute over pay

22 Apr 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...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+