The median pay increase across the economy remained at 4% in the three months to August 2024 after falling from 4.8% in June, according to the latest figures from Incomes Data Research (IDR).
Its latest pay settlement figures were based on a sample of 39 pay awards effective between 1 June and 31 August 2024. These were mostly within large organisations and covered more than 740,000 employees.
More than half (51%) of pay increases were worth between 4% and 4.99%, while 24% were worth 5% or more, up from one-fifth last month. Additionally, 23% were worth between 3% and 3.99%, 2% had pay freezes and no one offered a pay rise between 0.01% and 2.99%.
The median pay award in the private sector fell from 4.4% in July to 4.1%, due to a lower proportion of pay awards worth 5% or more. A total of 21% of pay increases were at this level in the three months to August, down from a quarter in July. This is due to changes in pay outcomes distribution in the private services, where the upper quartile fell from 5% to 4.5%.
Around 22% of awards in private services were worth 5% or more, down from July when 31% were at this level. In the manufacturing sector, 19% of awards were worth 5% or more in the three months to August, unchanged from July. However, the proportion of awards worth between 3% and 3.99% has grown from 19% in July to 24%, pulling the sector’s median down from 4.3% to 4%.
Meanwhile the median award for the public sector was slightly above the private sector for this period, at 4.5%.
Zoe Woolacott, senior pay researcher at IDR, said: “The differing outcomes in the private and public sectors reflect the cycle of pay between the two, after a lengthy period in which public sector pay awards lagged behind those in the private sector. The median is trending down but remains above inflation for the moment. However, if inflation falls further, pay awards are likely to follow it, eventually.”
