Pay for UK employees is set to increase by 3% for 2015, according to research by Aon Hewitt.
Its Global salary increase survey surveyed 560 organisations, representing 5,390 employers in 121 countries, This included 215 UK organisations.
The 3% projection is consistent with findings from the last three years, in which salary increases have been stable around the 3% mark.
The research also found:
- UK employers are continuing to offer above average salary increases compared to those in most other larger European economies.
- The number of organisations considering salary freezes has increased by 6%.
Andrew MacLeod, head of pay research at Aon Hewitt, said: “The UK economy has been growing for the past two years and that increased stability is feeding through into salaries.
“While employers are by no means letting wages off the leash, they have been able to keep salary increases more or less stable, more so than in many other economies in Western Europe.
“It’s not entirely surprising, despite the positive headlines on the economy, that some UK employers are behaving more cautiously on pay budgets. There is still a great deal of ongoing uncertainty in the Eurozone and in other major global economies.
“However, as unemployment continues to fall and as the economy continues to pick up, we can expect to see upward pressure on pay budgets as [employers] start again to compete for the best talent.”