43% planning pay rises in line with Retail Prices Index

Almost half (43%) of respondents are planning to increase pay in line with the Retail Prices Index (RPI), according to the Confederation of British Industry (CBI). 


The CBI/Accenture Employment trends survey 2014, which questioned 323 businesses employing a combined total of more than 1.25 million workers, also found that 12% of respondents are planning to give pay increases above the RPI, while 15% are planning to give a general increase below this level. 

In addition, 12% are planning to give targeted increases for some staff only and 8% will freeze pay. 

The research also found:

Katja Hall (pictured), deputy director-general at CBI, said: “We want to see everyone enjoy the rewards of the economic recovery.

“Growth should work for everyone, and skills are the key route to ensuring that this happens through improved productivity and pay.

“Organisations and the government need to work together to find ways to develop skills within the workforce and help employees move into higher skilled and better-paid jobs.

”It is also clear that the minimum wage must be a clear and enforced legal base of pay, with the decision on its level made by the independent Low Pay Commission (LPC), to ensure it is free from political meddling.

”This way, the LPC can ensure wage rises as fast as possible without a negative impact on jobs.”