UK employer pay awards edge up to 3.1%, Brightmine says
LONDON: Pay settlements by British employers edged up in the three months to the end of September but there was little sign of a shift in wage trends, human resources data firm Brightmine said on Wednesday. Bank of England’s Bailey says second-round inflation pressures look subdued so far The median pay award by employers rose to 3.1%, up from 3.0% in the previous three-month periods to August…
British employers granted modest pay increases in the three months leading up to September, according to a survey conducted by human resources data firm Brightmine. The median pay award by employers rose to 3.1%, marking a slight increase from 3.0% in the previous quarter. However, this figure is still lower than the faster pace of increases observed earlier in the year.
The report analyzed 42 pay settlements involving over 650,000 employees. Most pay deals did not exceed the 3% increases granted a year earlier. Experts anticipate that pay awards will remain at 3% throughout 2027. Rising social security contributions and the impending increase in the minimum wage are expected to put pressure on employers' budgets.
Bank of England's Bailey noted that second-round inflation pressures appear subdued so far. On Tuesday, official data revealed that private sector wage growth picked up for the first time since the end of 2024, further supporting the case for a Bank of England interest rate hike in November.
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