Report on latest UK pay increases

Pay negotiations are often a key concern for HR managers – so what does the national picture look like? Despite the recession, the latest report from Income Data Services (IDS) shows the median pay rise in the U.K. holding at 2.5%. The figures look at pay settlements over the last three months until the end of August and cover 5 million employees. The results show a very mixed picture, described as a ‘two-speed’ economy. The analysis, on the People Management website, shows on one hand that one in ten settlements resulted in a pay freeze, notably in the public, not-for profit and construction sector. More buoyant sectors with pay increases up to 4% include the engineering, energy, pharmaceutical and rail transport sectors. Additionally, such changes as "falling inflation meant the gap between pay awards and the rising cost of living was narrowing.” For more analysis read the full article at http://www.peoplemanagement.co.uk/pm/articles/2012/09/median-pay-rise-remains-at-2-5-per-cent-in-uk.htm