Pay awards '1% below inflation'

Pound coinMedian pay awards so far this year have been 2.6%, around 1% below the rate of inflation, a new study has shown.

An analysis of more than 200 settlements in private firms by pay specialists XpertHR showed that increases were "holding up well" compared with a year ago.
Half of pay deals were worth between 2% and 3% with around one in 10 involving a wage freeze.

Sheila Attwood of XpertHR said: "Private sector pay awards are expected to retain their current level around 2.6% over the next couple of months. However, in the public sector there is a very different picture, with the pay freeze continuing for another year.

"The gap between pay awards and inflation is only going to close considerably if inflation falls as there is no sign of a significant rise in the level of pay awards."

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