Pay settlements continue to stay at 3 per cent

Pay settlements for the year ahead look set to remain at 3 per cent, according to new figures.

The annual pay prospects survey of 297 organisations by Personnel Today’s sister publication IRS shows that more than 40 per cent of respondents expect to award a 3 per cent pay rise at their next review.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today and OHW+ - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Name

This field is for validation purposes and should be left unchanged.

Δ

Pay settlements have remained at the same level for the past 18 months, and the widespread prediction is that this will continue. However, the survey also shows that upward influences are beginning to mount, and employers are under pressure to increase settlements above this level.

Company performance or ability to pay is the most common determinant, cited by 91 per cent of employers surveyed. This was followed by the level of inflation (74 per cent) and an inability to increase the price of products or services (26 per cent).