The latest data from Incomes Data Research (IDR) has shown that in the three months to April 2022, the median pay award rose from 3.0% to 3.5%. IDRs’ analysis of 70 pay deals in the preceding three months revealed that over two-fifths of reviews have awarded employees with an increase of 4% or more.
31% of all pay awards occurred in the 5%-plus brackets which is far more than the one-in-twenty pay increases at this level during the same period last year. However, it is important to note that the annual up-life in the National Living Wage is a key influence that may have skewed the data, especially for lower-paying employers.
The National Living Wage rose by 6.6% on 1 April this year to £9.50 which is likely to be a significant factor in the level of 5%-plus pay awards. On the other end of the spectrum, fewer employers implemented awards below 2% this year
In the private sector, pay increases of 4% or more were most common in financial services and retail with a number of banks establishing their annual pay budgets at above 4% whilst major retailers have increased their pay by even more.
Paul Arkwright
Publisher
