Total pay grows by 2.4%

Pay, excluding bonuses, increased by 2.8% in April to June 2015, according to figures published by the Office for National Statistics (ONS). 

minimum wage

The ONS UK labour market, August 2015 report found that total pay, inclusive of bonuses, grew by 2.4% in April to June 2015. This represents a lower rate of growth than in March to May 2015, when total pay increased by 3.2%.

Average regular pay for Great Britain’s employees, excluding bonuses, was £463 a week before tax and other deductions in June 2015.

Average total pay before tax and other deductions reached £488 a week in June.

Iain Duncan Smith, work and pensions secretary, said: “I was particularly pleased to see that wages are continuing to rise, meaning that hardworking people will see a real difference in their pay packets.”

Ben Brettell, senior economist at Hargreaves Lansdown, added: “The UK jobs market could be ‘levelling off’, according to the ONS. UK unemployment rose 25,000 in the second quarter, the first time it has increased in two consecutive months for two years. Meanwhile wage growth slowed to 2.4%, compared with 3.2% the previous month.

“While disappointing, these figures should not prove cause for concern. The magnitude of the rise in unemployment was small enough to leave the overall rate unchanged at 5.6%, and the pace of job creation has been expected to slow for some time as the recovery matures.

“Growth in pay, although slower, remains robust, and combined with zero inflation this is good news for the UK consumer. This, in turn, should be positive for economic growth, which I expect to pick up during the second half of the year.”