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+

Latest NewsPay & benefitsPay settlements

Pay awards edge up to 2%

by Ashleigh Webber 24 Jun 2021
by Ashleigh Webber 24 Jun 2021 Shutterstock
Shutterstock

Pay awards have reached their highest level for six months, at 2%, but still lag behind inflation.

According to the latest analysis of pay settlement data by XpertHR, the average pay award effective in the three months to the end of May 2021 increased by 0.1 percentage points on figure for the previous rolling quarter (1.9%). Pay awards have not reached this level since November 2020.

However, employers still exercised significant pay restraint and the value of pay awards fell behind the cost of living. The retail prices index (RPI) and consumer prices index (CPI) measures of inflation rose to 3.3% and 2.1% respectively in May 2021.

The average pay award has been below RPI for six rolling quarters and has now fallen behind CPI for the first time since the three months to the end of July last year.

Sheila Attwood, XpertHR pay and benefits editor, said: “Whilst pay awards have edged up over the past few months, it feels as though a 2% median award might be the ceiling for now.

Pay

Hospitality wages up 14% to lure temps

Below-inflation pay awards but optimism ahead

28% of employees would reduce salary for flexible working

“While some employers are addressing labour shortages through higher starting salaries, when it comes to annual pay reviews many organisations remain unable to offer much or any increase.”

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’s analysis of 228 pay settlements effective between 1 March and 31 May 2021, covering 940,000 employees, found that:

  •  Some 17.8% of pay reviews resulted in a pay freeze. This was most evident in the services sector – 20.6% of service sector firms within XpertHR’s sample recorded a pay freeze, compared with 10.7% in manufacturing and production
  • One in six pay awards was worth 2%
  • Of a matched sample of 188 deals, 55.3% were lower than the same group of employees received a year before and 25% were the same
  • The lower quartile stood at 1%, unchanged on the figure for the previous three-month period, which has been revised up from 0.8%. The upper quartile shifted from 2.2% to 2.3%, meaning that the middle half of pay settlements were worth between 1% and 2.3%
  • Pay awards in the public sector, at a median of 2.5%, were more than double the value of those in the private sector (1.2%) for the year to the end of May.

Reward, compensation and benefits opportunities


Browse all comp and benefits jobs

Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

previous post
Buckingham Palace admits it needs to do more on diversity
next post
One in 12 key workers missed out on statutory sick pay

You may also like

Living wage pushes up spring pay settlements

2 Jul 2025

Why bosses must set pay independently

2 Jul 2025

Pay awards remain ‘cautious’ in uncertain economy

25 Jun 2025

NHS pay disputes: Who could strike again?

20 Jun 2025

Nurses vote on whether 3.6% pay rise is...

9 Jun 2025

Streeting appeals to resident doctors to vote against...

29 May 2025

Unions ponder strike action after public sector pay...

23 May 2025

Public sector workers gain pay rises of up...

22 May 2025

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

  • 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+