The median pay award in the private sector has increased from 3% to 3.4%, according to research by Incomes Data Research (IDR).
Its figures are based on a sample of 26 pay awards between 1 August and 31 October 2025, covering more than 800,000 employees.
The proportion of increases worth between 4% or more in the sector grew from 23% to 31%, mainly influenced by outcomes in private services.
The median pay award in private services rose from 3% to 3.2%, with 63% of awards in the 3% to 3.99% bracket, compared to 44% in September. A quarter (25%) of pay rises were worth 4% or more, compared to just 8% of awards in September.
The median in the public sector rose slightly from 4% to 4.1%, due to higher-level rises worth 4% or above for many public sector workers this year. The public sector median has been equal to, or higher than, the private sector median throughout 2024 and 2025.
In manufacturing, the median remains higher than that of private services at 3.7%, a slight fall from 3.8% in September. This is mostly due to fewer awards at 4% or above in the current period. The number of high-end awards worth 4% or more fell from 44% to 40%.
Its analysis of the whole economy reveals a higher median of 3.7%, 0.3 percentage points higher than the private sector. From August to October 2025, the proportion of increases worth 4% or more grew from 35% to 46%, mainly driven by outcomes in the public sector.
This elevated median of 3.7% for October is higher than the median for 2025 as a whole, which stands at 3.3%.
Zoe Woolacott, senior pay researcher at IDR, said: “The uptick in the median is an indication that cost-of-living pressures continue to persist, even as the rate of inflation comes down. The path of both will be important determinants of pay outcomes in 2026.”
