Pay rises by 0.8% in September

Average weekly earnings, excluding bonuses, rose by 0.8% when comparing July to September 2013, according to the latest figures by the Office for National Statistics (ONS).

Its report, Labour market statistics, November 2013, also found that the average weekly wage, including bonuses, rose by 0.7% during the same three months.

In payment terms, weekly pay, excluding bonuses, was up from £443 to £447. Including bonuses, pay in September increased from £471 to £475.

Average weekly earnings in the private and public sector remained the same as in ONS’ October report, with weekly earnings in the private sector up by 1.1% and down by 0.4% in the public sector.

Nigel Meager, director of the Institute of Employment Studies, said: “The figures tell us that earnings are still failing to keep up with the cost of living; indeed, if anything the gap is getting wider.

“As the economic recovery continues, there is a big question about how long employers can keep the lid on pay levels.

“Any future wages surge may have a further dampening effect on employment growth.”