The latest data from XpertHR shows that pay settlements remain at their highest level for 30 years and are worth a median 4 percent in the three months to the end of October 2022.
Over the same period last year, the median pay award was worth just 2 percent.
However, the gap between wages and inflation remains stark, with retail price index (RPI) inflation at 12.6 percent in September 2022 and consumer price index (CPI) inflation at 10.1 percent.
Inflation: the latest pay award findings
Based on the outcome of 38 pay awards effective between 1 August 2022 and 31 October 2022, covering more than 555,000 employees, XpertHR finds that the whole-economy median pay award in the three months to the end of October 2022 is 4 percent, unchanged on the level seen in the previous six rolling quarters.
The research also reveals that the upper quartile, at or above which the top quarter of pay awards lie, is at 7.6 percent, from 5 percent in the previous rolling quarter; while the lower quartile is at 3.2 percent, from 3 percent in the previous rolling quarter.
Also, almost a quarter (22.2%) of basic pay awards are set at 4 percent, making this the most common award.
It was also found that among a matched sample of pay awards, 89.3 percent of employee groups have received a higher pay award than in the previous year.
Public sector continues to lag behind private sector
The private-sector median figure sits at 4 percrent in the year to the end of October 2022, up from 1.9 percent in the year to the end of October 2021.
In both the private sector and the whole economy, the interquartile range is between 3 percent and 5 percent.
In the public sector, the median pay award on an annual measure is worth 3.3 percent compared with 1.4 percent in the 12 months to the end of October 2021, with the middle half of pay awards worth between 2.3 percent and 4.7 percent.
Sheila Attwood, XpertHR senior content manager, data and HR insights, said:
“The gap between median pay awards and inflation is a continuing challenge for organisations. However not only is there the challenge of high inflation, but tight labour markets and continuing industrial action are pressuring organisations further to find the right balance between employees’ pay expectations and affordability. It is likely that affordability will continue to be the driving factor in final pay decisions as economic uncertainty looms at the forefront of many businesses’ concerns.”
