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 stabilise at 2%

by Ashleigh Webber 19 Aug 2021
by Ashleigh Webber 19 Aug 2021 Ceri Breeze / Shutterstock.com
Ceri Breeze / Shutterstock.com

Pay awards have stabilised at a ‘welcome’ 2% after a year of uncertainty, according to analysis by XpertHR.

The median basic pay award between May and July 2021 was at this level, unchanged on the figure seen in each of the three previous rolling quarters.

Pay settlements

Wage rises could lead to price spikes

Pret a Manger makes staff pay cut permanent

Goldman Sachs to increase junior bankers’ pay

XpertHR said the stabilisation was welcome, particularly as the median pay award fell to nil in the same period a year ago.

“2020 marked the worst year for pay awards since 2010, so it is welcoming to have seen pay deals rising and now stabilising. It is likely that awards will remain at this level as employers are still regrouping and looking to strike the balance between recruitment and wider reward package costs,” said Sheila Attwood, XpertHR pay and benefits editor.

XpertHR’s analysis was based on 36 pay settlements effective between 1 May and 31 July 2021, which covered more than 687,000 employees.

Employees in the services sector received pay awards of 2% on average – the highest median pay award XpertHR has recorded in this sector since November 2020. Almost two-thirds of pay settlements in the sector were at this level or higher.

In the 12 months to the end of July 2021, the median pay award in the public sector was 2%, with an interquartile range of 1.2% and 3%. In the same period the median in the private sector was 1.5%, with an interquartile range between nil and 2%.

Across the whole economy, the median settlement in the 12 months to the end of July 2021 was 1.5%.

This meant that public sector pay awards ran in line with inflation, whereas private sector awards were lower. According to the Office for National Statistics, the consumer prices index measure of inflation fell from 2.5% in the year to the end of June to 2% at the end of July.

“Despite movements to end restrictions and a move towards a ‘return to normal’, best reflected in the two percentage points increase in private sector median pay awards over the past year, uncertainty still remains,” Attwood said.

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 also found that:

  • Half of pay awards were higher than what the same group of employees received the previous year. In a matched sample of 28 pay deals (both basic and performance based), 54% were higher, while 25% were lower and 21% were the same. Conversely, in the same period in 2020, 61% were lower and only 18% were higher.
  • The middle half of all pay awards was worth between 1.5% and 2.8%. The lower quartile has risen by 0.5 percentage points on the previous three rolling quarters, while the upper quartile is also up by 0.5 percentage points.
  • There were only two pay freezes within the sample. In the same period last year, pay freezes accounted for 51% of the total sample of pay settlements.

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
What can HR do if double-jabbed employees insist on self-isolating?
next post
Stimulating jobs lower risk of dementia

You may also like

Next to improve wage-setting transparency after shareholder pressure

16 May 2025

Ofgem workers ballot for strike action

2 May 2025

What will reward look like in 2035?

28 Apr 2025

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

23 Apr 2025

Post-pandemic starters seek more pay for on-site working

10 Apr 2025

Maisie Adam to host Employee Benefits Awards 2025

3 Apr 2025

Most businesses will need to adjust wages in...

28 Mar 2025

‘British people too polite to talk about salary?...

28 Mar 2025

Senior HR pay rising faster than junior roles

28 Mar 2025

Employee Benefits Awards 2025 shortlist revealed

24 Mar 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+