Total pay increases by 2.3%, according to ONS

money, pound coins

Total pay, including bonuses, increased by 2.3% for employees in Great Britain between July-September 2015 and July-September 2016, according to the Office for National Statistics (ONS).

Its UK labour market: November 2016 report also found that average regular pay, excluding bonuses and before tax and other deductions, was £475 a week in September 2016. This compares to £463 a week in September 2015.

Average total pay, including bonuses and before tax and other deductions, was £505 a week in September 2016. This is an increase from £493 in September 2015.

In nominal terms, where pay has not been adjusted for consumer price inflation, regular pay excluding bonuses increased by 2.4% between July-September 2015 and July-September 2016.

Average total pay in nominal terms increased from £311 a week in January 2000 to £505 a week in September 2016, representing a rise of 62.2%.

In real terms, adjusted for consumer price inflation, both regular and total pay increased by 1.7% between July-September 2015 and July-September 2016.

Ben Brettell, senior economist at Hargreaves Lansdown, said: “The UK’s labour market continues to surprise with its resilience to the Brexit shock. The unemployment rate fell unexpectedly to a new 11-year low of 4.8% in the three months to September. This is yet more evidence that the labour market and the wider economy have fared better than expected since June’s referendum.

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Wage growth held steady at 2.3%, but it’s probable pay will fall in real terms over the coming year or so.”

Gerwyn Davies, labour market adviser at the Chartered Institute of Personnel and Development (CIPD)added: “While wage growth remains stable at just above 2%, CIPD research suggests there is likely to be downward pressure on wages over the coming year, partly because a weaker pound will increase costs for many businesses and partly because of a rise in employment costs as a result of the introduction of the national living wage, pension auto-enrolment and the forthcoming apprenticeship levy. This could lead to a return of the ‘squeezed middle’ phenomenon, with star performers and national living wage recipients the key beneficiaries.”