Salaries are up 1.5% year-on-year

Salaries are up 1.5% year-on-year in the UK, according to research by recruitment consultancy Robert Walters.

The Robert Walters 2012 salary survey found that overall permanent salary levels increased 1.8% in London, 2.4% in Thames Valley and the south east, 0.4% in the Midlands, and 0.8% in the north of England.

Contractor pay grew markedly quicker than permanent salaries, with an average increase of 3.7% across the UK and 4.3% in London.

In terms of sectors, permanent salaries increased 9.6% for compliance professionals, 2.6% for HR professionals, and 2.4% for lawyers.

Contract rates rose by 13.8% for risk professionals, 10.7% for compliance specialists, 7.8% for accountants, 4.1% for investment banking operations professionals, and 3.4% for both marketers and information technology (IT) specialists.

Chris Hickey, managing director of UK recruitment at Robert Walters, said: “Against a backdrop of challenging market conditions, it is unsurprising that growth in permanent salaries has been relatively modest over the past year.

“However, it is encouraging that pay across the country is continuing to rise.

“The fact that contract rates have grown almost two-and-a-half times as fast as permanent salaries over the past year highlights where organisations’ priorities lie at the moment.

“Employers are focusing on projects that maximise efficiencies or work they consider business critical and are prepared to pay in order to secure the best contractors to complete these tasks.”