Latest news with #paysettlements
Yahoo
10 hours ago
- Business
- Yahoo
UK private-sector pay settlements fall despite higher minimum wage, data shows
LONDON (Reuters) -Typical annual pay settlements offered by British companies in the three months to April fell slightly, despite a rise in the minimum wage which boosted pay significantly for some lower-paid workers, industry data showed on Monday. The news is likely to be welcomed by the Bank of England, which has forecast a sharp slowdown in pay growth this year that it says is needed for consumer price inflation to return to its 2% target. Incomes Data Research said the median private-sector wage deal edged downwards to 3.4% in the three months to April from 3.5% in the three months to March. However, the proportion of employers offering pay settlements of more than 6% jumped to 11% from March's 2%, reflecting a 6.7% increase in the minimum wage to 12.21 pounds ($16.51) an hour that took effect in April, IDR said. April also marked the start of higher national insurance contributions for employers, which have made some businesses more reluctant to hire. For the whole economy, pay settlements were unchanged at 3.2%, reflecting a 2.7% rise in pay at not-for-profit employers. Very few public-sector employers were in the sample of 129 pay deals which covered 1.3 million workers, mostly at large companies, IDR said. Britain's Office for National Statistics is due to publish wage data for the three months to April on Tuesday. Preliminary Reuters polling data on Friday showed average earnings growth, excluding bonuses, is forecast by economists to slow to 5.4% from 5.6%. The BoE sees pay growth of around 3% as consistent with on-target inflation over the medium term. Average earnings data in Britain tends to exceed pay settlements by some margin as the former also captures the boost to pay when employers offer more higher-paid roles. ($1 = 0.7396 pounds)
Reuters
11 hours ago
- Business
- Reuters
UK private-sector pay settlements fall despite higher minimum wage, data shows
LONDON, June 9 (Reuters) - Typical annual pay settlements offered by British companies in the three months to April fell slightly, despite a rise in the minimum wage which boosted pay significantly for some lower-paid workers, industry data showed on Monday. The news is likely to be welcomed by the Bank of England, which has forecast a sharp slowdown in pay growth this year that it says is needed for consumer price inflation to return to its 2% target. Incomes Data Research said the median private-sector wage deal edged downwards to 3.4% in the three months to April from 3.5% in the three months to March. However, the proportion of employers offering pay settlements of more than 6% jumped to 11% from March's 2%, reflecting a 6.7% increase in the minimum wage to 12.21 pounds ($16.51) an hour that took effect in April, IDR said. April also marked the start of higher national insurance contributions for employers, which have made some businesses more reluctant to hire. For the whole economy, pay settlements were unchanged at 3.2%, reflecting a 2.7% rise in pay at not-for-profit employers. Very few public-sector employers were in the sample of 129 pay deals which covered 1.3 million workers, mostly at large companies, IDR said. Britain's Office for National Statistics is due to publish wage data for the three months to April on Tuesday. Preliminary Reuters polling data on Friday showed average earnings growth, excluding bonuses, is forecast by economists to slow to 5.4% from 5.6%. The BoE sees pay growth of around 3% as consistent with on-target inflation over the medium term. Average earnings data in Britain tends to exceed pay settlements by some margin as the former also captures the boost to pay when employers offer more higher-paid roles. ($1 = 0.7396 pounds)
Reuters
20-05-2025
- Business
- Reuters
UK employer pay rises hold at 3% but signs of softness grow, Brightmine says
LONDON, May 21 (Reuters) - Pay settlements granted by British employers stayed at 3% in the three months to April but many firms are now offering smaller raises, according to figures from data firm Brightmine that are likely to be welcomed by the Bank of England. Wednesday's data marked the fifth consecutive rolling quarter of pay awards at 3%, the weakest pace of increase since December 2021. BoE officials are watching to see how employers react to a hike in their social security contributions - known in Britain as national insurance - and a sharp rise in the national minimum wage. Both took effect in April, a key month for pay deals. Brightmine said nearly half of employers it surveyed offered pay rises below the median 3% level. "Pay awards are stable, but beneath the surface, many businesses are opting for lower rises and our headline median could therefore fall in the months ahead," said Sheila Attwood, HR insights and data lead at Brightmine. "The subdued pattern of pay settlements indicates that many employers continue to approach wage decisions with caution in the face of ongoing cost pressures that will continue into the second half of the year." The BoE wants to see inflation pressure in Britain's jobs market abating sufficiently for it to carry on cutting interest rates. The central bank's chief economist Huw Pill said on Tuesday that the BoE's pace of rate cuts had been too fast. Official figures due at 0600 GMT are likely to show the rate of headline inflation in Britain jumped in April due in large part to higher regulated prices for water and energy. Brightmine analysed 136 pay settlements effective in the three months to April 30 covering more than 309,000 employees.
