UK pay settlements hold at 4%, highest since 1992 - XpertHR
Reuters
Published Aug 17, 2022 00:08
Updated Aug 17, 2022 00:30
LONDON (Reuters) - British employers agreed average pay rises of 4% with staff in the three months to the end of July, the joint-biggest increase since 1992 but falling further behind inflation, industry data showed on Wednesday.
Human resources data company XpertHR said the median pay settlement remained unchanged for a fourth month in a row even as inflation hit a 40-year high of 9.4% in June and is set to exceed 13% in October, according to the Bank of England.
Separate figures on Tuesday showed the biggest real-terms fall in pay excluding bonuses since official records began in 2001.
"Pay awards continue to remain stagnant, unchanged from the previous three rolling quarters at 4%, in spite of soaring inflation," XpertHR pay and benefits editor Sheila Attwood said.
The BoE wants to stop high inflation - which has been largely driven by a jump in energy prices - from becoming entrenched for years to come.
Earlier this month, the central bank raised interest rates by the most since 1995, citing inflation pressures in the labour market as a factor for its decision, notwithstanding its forecast of a five-quarter recession starting in late 2020.
XpertHR said it monitored 68 pay deals in the May-July period, covering almost 550,000 employees.
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Written By: Reuters
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