Firms predict 2.5% pay rise in 2014

%VIRTUAL-SkimlinksPromo%walletFirms expect to give their workers a pay rise of 2.5% next year, although some are predicting a wage freeze, according to a study.

A survey of 240 private sector organisations by analysts XpertHR showed that almost two-thirds believed their 2014 pay awards would be the same as this year, suggesting a "subdued" picture.

Just over 6% of those questioned said they expected pay to be frozen.

XpertHR spokeswoman Sheila Attwood said: "Private sector employers are predicting another year of subdued pay rises, with increases forecast to be worth around 2.5%.

"There are some positive signs, with fewer employers predicting a pay freeze, but awards expected to be worth more than 3% remain rare.

"Employers are likely to be keeping a close eye on the rate of growth in the wider economy and in turn in their own business, and how this impacts the demand for labour, before making any big decisions on pay."

TUC general secretary Frances O'Grady said: "While politicians are likely to claim today's GDP figures as evidence that Britain is booming again, the feelgood factor is still not being felt in people's pockets.

"While this forecast suggests some small improvements in wage settlements may be on the way, at this rate it will take years for the living standards crisis to end.

"If the rewards of growth are not fairly shared through better pay rises for all workers, people will become more reliant on borrowing to get by and the recovery could soon run out of steam."

© 2013 Press Association
Read Full Story