Total pay for employees in Great Britain, which includes bonuses, increased by 1.2% in real terms between September to November 2017 and September to November 2018, according to research by the Office for National Statistics (ONS).
Its UK labour market: January 2019 report also found that regular pay, excluding bonus payments, increased by 1.1% in real terms, meaning that it has been adjusted for consumer price inflation, between the periods of September to November 2017 and September to November 2018.
In nominal terms, namely not having been adjusted for consumer price inflation, total pay increased by 3.4% between September to November 2017 and September to November 2018; the annual growth rate has not been higher than this since May to July 2008.
In nominal terms, regular pay, which excludes bonuses, increased by 3.3% between September to November 2017 and September to November 2018. The last time the annual growth rate was higher than this was in September to November 2008.
Average total pay for employees in Great Britain was £527 a week in nominal terms before tax and other deductions from pay in November 2018. This compares to £510 a week in November 2017. Average regular pay was £494 a week in nominal terms for British employees in November 2018, before tax and other deductions. This compares to £478 a week in November 2017.
Jon Boys, labour market economist at the Chartered Institute for Personnel and Development (CIPD), said: “The figures can be seen as good news for employees, as the tight labour market is feeding into real pay growth. With inflation forecast to be lower than previously expected, pay growth is likely to continue into 2019.
“In the absence of productivity growth to fund it, paying staff more is a strategy that can’t be used indefinitely. Businesses should consider retention and training of their current workforce to raise productivity and fill skills gaps.”