Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • 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
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • 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
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

InflationLatest NewsPay & benefitsPay settlements

Pay settlements hit 6%, highest since 1991

by Ashleigh Webber 22 Feb 2023
by Ashleigh Webber 22 Feb 2023 The average pay settlement hit 6% in November 2022 to January 2023
Image: Shutterstock
The average pay settlement hit 6% in November 2022 to January 2023
Image: Shutterstock

The average pay settlement reached 6% in the three months to January 2023 – a 32-year high, according to XpertHR.

This was a one percentage point increase as the median seen in the previous rolling quarter, as well as the highest average award recorded by XpertHR since 1991.

The gap between pay deals and inflation narrowed slightly, but employees are still seeing a pay cut in real teams. Inflation at the consumer prices index (CPI) measure was 10.1% in the 12 months to January 2023.

However, XpertHR said inflation would start to fall and predicted that it would ease back to 4.3% in the fourth quarter of this year.

Its analysis of 110 basic pay awards effective between 1 November 2022 and 31 January 2023, covering more than 240,000 employees, showed that:

  • Four-fifths (81.1%) of pay settlements were higher than what the same group of employees received a year earlier
  • Pay settlements ranged between 2% and 10.9%
  • No settlements resulted in a pay freeze
  • The middle 50% of basic pay reviews ranged between 4.5% and 7%, compared with a 4.8 percentage point spread last month.

Pay settlements

Government suggests 3.5% public sector pay increase for 2023-24

Tesco store pay to increase 7% to £11.02 per hour

HR salaries struggle to keep up with inflation

Sheila Attwood, XpertHR senior content manager, data and HR insights, said: “This latest dataset is significant because it includes the first wage reviews of the calendar year, giving those responsible for determining pay awards later in the current bargaining round – including April, the most important month in the annual settlement calendar – an indication of where deals are heading.

“For many employers the most important determinant of wage setting outcomes is simply their ability to pay. Of course, businesses will want to keep pace with inflation and give staff all the financial support they can, but a lot simply cannot afford an increase of that magnitude.

“There is no denying tensions between employers and their employees are high at the moment, with industrial action across various sectors dominating the headlines – and dispute over pay is a key factor. Where employers cannot afford higher salary increases, to support staff through the cost-of-living crisis they may consider other arrangements, for example a no-interest loan or a one-off lump-sum payment.”

Reward, compensation and benefits opportunities


Browse all comp and benefits jobs

bespoke email
Ashleigh Webber
Ashleigh Webber

Ashleigh is editor of OHW+ and 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. Prior to joining Personnel Today in 2018, she covered the road transport sector for Commercial Motor and Motor Transport magazines, touching on some of the employment and wellbeing issues experienced by those in road haulage.

previous post
Mental health first aid bill ‘could create negative consequences’
next post
HR teams seek long-term impact from talent strategies

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

Union says Amazon pay rise is ‘insulting’

23 Mar 2023

Pay awards expected to drop back to 5%

22 Mar 2023

Nurses and midwives in Scotland accept new NHS...

21 Mar 2023

Campaign group urges health workers to reject NHS...

20 Mar 2023

Teachers strikes paused as unions begin talks with...

17 Mar 2023

Aldi gives store assistants another pay rise

17 Mar 2023

NHS pay deal confirmed: Strikes suspended as unions...

16 Mar 2023

University staff consider new offer but strikes continue

15 Mar 2023

UK workers would share salary to improve pay...

13 Mar 2023

Teachers in Scotland accept pay deal, ending strike...

10 Mar 2023

  • Sodexo Engage – Mountain of lost benefits ebook PROMOTED | Help your people feel the impact of your benefits...Read more
  • Neurodiversity: How to make the workplace more inclusive (webinar) WEBINAR | Can your organisation truly be inclusive...Read more
  • How HR can facilitate internal talent mobility PROMOTED | Should internal talent mobility be a priority...Read more
  • Bereavement in the workplace: How training can help HR get it right PROMOTED | HR professionals play an essential role...Read more
  • UK workforce mental wellbeing needs PROMOTED | The mental wellbeing support employers are providing misses the mark...Read more
  • The Workplace Today Guide: Why it pays to support your staff’s financial health PROMOTED | The cost of living crisis has hit...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 2023

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2023 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • 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
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+