The median pay award across the economy rose slightly from 4.5% to 4.6% for the three months to June 2024, according to Incomes Data Research (IDR).
Its latest analysis, based on a sample of 227 pay awards between 1 April and 30 June covering more than 1.9 million employees, also found that 30% of all pay increases were worth 6% or more and 19% were worth between 5 and 5.99%. More than one-quarter (28%) were worth between 4 and 4.99%, up from 27% in May, 19% were worth between 3 and 3.99% and just 4% were worth between 0.01 and 2.99%.
Nearly one-quarter (23%) of pay rises in the manufacturing sector were worth 6% or more in June, up from 15% in the three months to May. This increased the median from 4.5% to 4.6%. Awards at this level were most commonly seen among food and drink manufacturers.
The median pay award in private services fell from 4.7% to 4.5% in June, while the proportion of increases in the 6% and above bracket fell slightly from 37% in May to 36% in June. The interquartile range of awards stands between 4% and 8% due to the variety of increases across the sector.
The proportion of pay increases worth 6% or more rose in the not-for-profit sector, with a quarter of increases at this level in June, up from 22% in May. This increased the upper quartile from 5.1% to 5.4%.
Zoe Woolacott, senior pay researcher at IDR, said: “Our latest analysis indicates that the current trends for pay rises are pointing in different directions in different sectors. Higher-end awards worth 6% or more continue to occur in the private sector but there are differences between manufacturing, where the proportion of awards at this level has grown, and private services, where such instances have declined.”
