Total pay for employees in Great Britain, including bonuses, increased by 0.1% in real terms between December 2016 to February 2017 and December 2017 to February 2018, according to research by the Office for National Statistics (ONS).
Its UK labour market: April 2018 report also found that regular pay, excluding bonus payments, increased by 0.2% in real terms, which has been adjusted for consumer price inflation, between December 2016 to February 2017 and December 2017 to February 2018.
In nominal terms, which has not been adjusted for consumer price inflation, both total pay and regular pay increased by 2.8% between December 2016 to February 2017 and December 2017 to February 2018.
Average total pay, including bonuses, was £513 a week in nominal terms before tax and other deductions from pay for employees in Great Britain in February 2018. This compares to £501 a week in February 2017. Average regular pay, excluding bonuses, was £483 a week for British employees in February 2018, before tax and other deductions from pay. This compares to £469 a week in February 2017.
In real terms, average total pay for employees in Great Britain was £486 a week in February 2018, before tax and other deductions from pay. Average regular pay in real terms, excluding bonus payments, was £459 a week in February 2018, before tax and other deductions from pay.
Average total pay for employees in Great Britain, in nominal terms, increased by 36.2% between January 2005 and February 2018, rising from £376 a week to £513 a week. Over the same time period, the Consumer Prices Index, including occupiers’ housing costs, increased by 34%.
Ben Brettell, senior economist at Hargreaves Lansdown, said: “Wages are growing at their fastest rate in nearly three years. Pay grew 2.8% in the three months to February. The squeeze on incomes isn’t quite over, as prices rose at an annual rate of 2.9% during that period. But with inflation currently running at 2.7%, and expected to fall towards 2% this year, it looks certain we’ll see real wages start to grow again in the coming months.”