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28 June 2012

Pay deals average 3% for 2012 so far

Settlements continue to show a rise of 3.0%, according to data from the Labour Research Department's Payline database. This has been the midpoint (median) for increases across the whole economy for the three months to May and the year so far.

The median settlements vary by sector: the private sector saw average increases of 3.0% in the three months to May, but the public sector only averaged 1.8%. Private sector increases have averaged 3.0% for 2012 so far, but public sector increases have ranged from 1.5% to 1.9% this year, 'reflecting increases for some lower-paid staff under the government's pay freeze policy'.

In manufacturing, increases averaged 3.0% for May - the same figure for the rest of 2012 but in services the median was up to 3.3%, after running at 3.0% for the first four months of the year.

With the latest figures for inflation showing the Retail Prices Index (RPI) up by 3.1% for the year to May, the gap between pay increases and inflation has narrowed sharply for most sectors apart from the public sector.

Notes for editors
  • For further information contact Lewis Emery

  • The figures in this release are as published in the latest edition of LRD's
    Workplace Report magazine.

  • Updated figures on available on LRD Payline - LRD's database of negotiated agreements reported to LRD by unions. It includes more than 2,300 agreements with information on pay, terms and conditions and other aspects of the employment contract.

  • Pay settlements are negotiated rises on basic pay, and exclude bonus, increments, overtime and other allowances.

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