Total pay for employees in Great Britain increased by 2.8% in real terms in May-July 2015 compared to the corresponding period in 2014, according to research by the Office for National Statistics (ONS).

Money - thumbnail

Its Labour market statistics, September 2015, report, also found that regular pay (excluding bonuses) grew 2.9% between May-July 2014 and May-July 2015.

In nominal terms, not adjusting for consumer price inflation, both total pay and regular pay rose by 2.9% in May-July 2015. This is the highest rate of growth recorded for regular pay since the three months to January 2009.

In July 2015, average regular pay reached £465 a week before tax and other deductions. Including bonuses, average pay for July 2015 was £496 a week. This compares to total pay of £311 a week when records began in January 2000, representing an increase of 59.2% in nominal terms.

Ben Brettell, senior economist at Hargreaves Lansdown, said: ”Today’s labour market statistics show that gains in the number of people employed are levelling off as the recovery matures, and that wage growth continues to accelerate as employers find they need to pay more to attract staff.

“Average pay growth of 2.9% in the three months to July, compared with a year ago represents the strongest growth for six years.”