Low Pay Awards Here To Stay, Says XpertHR

Pay rises in the remainder of 2013 are likely to be no more than 2% on average, according to the latest analysis from pay specialists XpertHR.

The latest findings from XpertHR reveal that the median pay rise remains at 2% for the fourth consecutive rolling quarter. The analysis covers pay awards effective in the three months to the end of July 2013.

We have now entered the quiet period of the year for pay bargaining, as April deals no longer form part of the analysis (around 70% of pay awards settle in the first four months of the year).

The research also reveals a divergence of pay deals across different sectors of the economy. In the public sector, deals are focussed on the Government's policy of a 1% average pay award. But in the private sector there is a wider spread of deals - between a 10% pay cut and 3.5% pay rise, demonstrating that while some employers are able to pay higher awards, others are still awarding very low or no increases. Pay awards in the manufacturing sector - at 2.6% - are higher than in the services sector (2%).

XpertHR Pay and Benefits editor Sheila Attwood said:

"The number of employers awarding pay rises that match or exceed inflation remains low, with the majority of pay awards falling short of the increase in prices. For employees there is little prospect of higher pay rises as our research suggests that 2% will remain the benchmark pay award for the remainder of the year."

- Ends -

Note to Editors:

Sheila Attwood is available for interview.

For more information please contact:

Sheila Attwood
E: sheila.attwood@xperthr.co.uk
T: 020 8652 2251 (or 07919 157865 after 4.30pm Thursday)

- The monthly pay award statistics are based on the largest sample of pay deals collected in the UK - every year XpertHR collects details of in excess of 1,600 pay settlements. In our latest quarterly analysis we have recorded details of 53 pay awards effective in the three months to the end of July 2013.

- XpertHR is the UK's most comprehensive online source of legal compliance, good practice and benchmarking information made available to HR professionals as a single subscription service.

- All XpertHR press releases can now be viewed here. The next press release on pay settlement trends will be released on 27 September 2013.

The median increase by number of pay reviews is the midpoint in the total spread of basic pay awards - i.e. the percentage at which half the pay reviews are at the same or higher value and half are at the same or lower value.

The basic pay award measured is the annualised percentage increase received by the lowest adult grade. It excludes any additional payments over and above the basic rise such as bonuses, consolidation, increments and performance-related pay.

XpertHR offers detailed statistics and analysis of pay settlements across the UK. XpertHR collects details of pay settlements for around 1,600 employee groups each year. Its database contains more than 34,000 settlements.