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Pay & benefits

Pay awards stuck at 2 percent

by Rob Moss 22 Nov 2013
by Rob Moss 22 Nov 2013

Pay awards continue to remain stable at 2%, according to the latest data from the pay specialists at XpertHR.

Findings for the three months to the end of October 2013 reveal that the median pay award is at 2% for the seventh consecutive rolling quarter.

With only a handful of organisations concluding pay awards in the final months of the year, all eyes will turn to the January pay round – which is particularly important for manufacturing-and-production companies – when around one-third of pay settlements in the sector take effect.

XpertHR pay and benefits editor Sheila Attwood said: “Pay awards will end another year on a low note, with 2% expected to be the benchmark award in the final months of the year.

“The prospects for the new year are not much better, with private-sector employers only predicting rises in the region of 2.5% through 2014, while retail prices index inflation is expected to sit at just about 3%. Another year of low and below inflation pay awards is a distinct prospect for UK employees.”

Over 12 months, pay awards of 2.5% in the manufacturing-and-production industry have been higher than those, at 2%, in the services industry, but over the coming year employers in both sectors are predicting pay awards in the region of 2.5%.

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Key findings for pay awards in the three months to the end of October 2013 include that:

  • the median pay award stood at 2%;
  • the middle half of deals fell between 1% and 2.3%;
  • more than one pay award in every 10 (13%) was a pay freeze;
  • the most common pay award was 1% – which reflects the relatively high number of public-sector awards at this level in the sample.

Read more on XpertHR’s latest pay research.

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.

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