Pay rises are stuck at 2% (and are even lower in the public sector)


Pay awards are averaging 2% according to the latest analysis of compensation by XpertHR.

Data for the twelve months to August 2015 reveals 28% of all pay awards were at the 2% average mark, however pay in the public sector continues to struggle.

XpertHR finds more than a quarter (26%) of public sector pay awards were at just 1%, while on average, public sector workers have been given just 1.6%.

Although the 2% rise is above the current rate of inflation (RPI at 1.1% and CPI at nil), the research finds this is the third consecutive year employers have not increased the amount by which they boost employees’ pay.

Some 39% of pay awards were lower this year than the same group of employees received in the previous year. Only 29% were higher. Moreover, just 6.5% of settlements were above 3%.

'Our data clearly shows employers are awarding the same across-the-board pay rises as a year ago, and the year before that,” said XpertHR’s Sheila Atwood.  

She added: “Although the economy is now growing, employers are not responding by awarding higher pay increases to employees.'

One good piece of news was the reduction in the number who are experiencing a pay freeze – now down to 7.6%, close to the long term average of 5%.