UK employer pay awards edge up to 3.1%, Brightmine says
- On Tuesday, official data showed private sector wage growth rose for the first time since the end of 2024
British employers' pay settlements saw a slight increase to 3.1% in Q3, yet overall wage trends show little significant shift, with future awards expected to remain stable.
- Median pay awards by British employers.
- Factors constraining employer budgets for pay increases.
- Implications for potential Bank of England interest rate hikes.
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 and July but lower than the pace of increases seen earlier this year.
On Tuesday, official data showed private sector wage growth rose for the first time since the end of 2024, adding to the case for a Bank of England interest rate hike in November.
Below are details from the survey:
Most pay deals did not exceed those given a year earlier.
Pay awards were expected to stay at 3% in 2027.
Higher employer social security contributions are constraining employers.
An increase in the minimum wage could also stretch budgets.
Brightmine analysed 42 pay settlements between July 1 and September 30 covering more than 650,000 employees.