Annual growth in employees’ average earnings excluding bonuses from June to August 2025 was 4.7%, down from 4.8% in the previous three-month period, according to figures from the Office for National Statistics (ONS).
It also found that annual growth for total earnings including bonuses for the same period was 5%, up from 4.8% in the previous three-month period. This was because the bonuses paid this August were slightly higher than those paid in August last year.
Annual growth for regular pay in real terms, adjusted for inflation using the Consumer Prices Index (CPI), was 0.6%, down from 0.7% in the previous three-month period. Meanwhile, annual growth for total pay was 0.8%, slightly up from 0.6% in the previous three-month period.
Using CPI, but excluding owner occupiers’ housing costs to adjust for inflation, annual growth in real terms was 0.9% for regular pay and 1.2% for total pay, up from 1.1% in the previous period.
Annual average regular earnings growth was 6% for the public sector, up from 5.6% previously, and 4.4% for the private sector, down from 4.7%. The public sector annual growth rate was affected by some pay rises paid earlier in 2025 than in 2024.
Liz McKeown, director of economic statistics at ONS, said: “After a long period of weak hiring activity, there are signs that the falls we have seen in both payroll numbers and vacancies are now levelling off. Wage growth slowed in the private sector to its lowest rate in nearly four years, but public sector pay growth increased, reflecting some public sector pay rises awarded earlier than they were last year. Meanwhile, August had the fewest working days lost to strike action in a single month for nearly six years.”
Michael Stull, managing director of ManpowerGroup UK, added: “The assumption is that taxes and other costs are going to go up, so employers are continuing to tighten belts to be prepared. There is also uncertainty on the employee part, with increasing costs and inflation people are reluctant to move roles.
“The average earnings rising 4.7% remains an anomaly. Although cooling slightly this year, the reported wage growth far out strips what we are seeing in the market. We’re monitoring the broader economic impact on salaries closely moving into the end of the year.”
