The level of staff pay awards is rising, according to the latest survey by Income Data Services.
The survey shows that average pay awards agreed by companies from July onwards have been in the 3 to 4 per cent range. Of those taking effect in September and October, around half are at or above 3.5 per cent.
The survey says that the higher annual inflation rate of 3.3 per cent is tending to lead to bigger increases being paid under inflation-linked formulas where organisations have long-term deals with staff.
The survey reveals that average earnings have been growing at an annual rate of 4.1 per cent in August, and that service sector workers have received pay increases of about 4.6 per cent.
Recent deals at 4 per cent or above include a rise of 4.4 per cent for staff at British Energy and a 4.3 per cent rise for staff in the Employment Service from April.