The number of employers freezing pay has crept up in the three months to the end of October 2011, with almost three pay packets in 10 (28%) frozen, compared with 25% in the last rolling quarter.
This is according to the latest pay analysis from XpertHR, which found that, while many public sector workers will continue to go without a pay rise in coming year due to the Government’s two-year pay freeze, one-tenth of private sector employers also expect to freeze pay in 2012.
Overall, the median pay settlement remained at 2% for the seventh consecutive rolling quarter and continued to lag behind the level of retail prices index inflation, which stood at 5.4% in October.
Pay rises varied across sectors, with manufacturing companies reporting a median pay award of 2.5% over the last three months compared with 1.5% in the services sector.
XpertHR pay and benefits editor Shelia Attwood commented: “We expect the median pay award to remain around 2% through to the end of the year. However, we are hopeful that pay awards will pick up in the new year, with a median 2.5% pay rise within private sector companies during 2012.”
The research also found that private sector employers thought that the 2.5% increase in the national minimum wage in October would put an upward pressure on the level of their next pay award.