UK Employer Pay Awards Rise to 3.1% as Wage Trends Hold Steady
Overview of Recent UK Pay Settlements and Wage Trends
LONDON, Oct 21 (Reuters) - Pay settlements by British employers edged up in the three months to the end of September but there was little sign of a shift in wage trends, human resources data firm Brightmine said on Wednesday.
The median pay award by employers rose to 3.1%, up from 3.0% in the previous three-month periods to August and July but lower than the pace of increases seen earlier this year.
Official Data and Economic Implications
On Tuesday, official data showed private sector wage growth rose for the first time since the end of 2024, adding to the case for a Bank of England interest rate hike in November.
Key Findings from the Brightmine Survey
Summary of Survey Results
Below are details from the survey:
- Most pay deals did not exceed those given a year earlier
- Pay awards were expected to stay at 3% in 2027
- Higher employer social security contributions are constraining employers
- An increase in the minimum wage could also stretch budgets
- Brightmine analysed 42 pay settlements between July 1 and September 30 covering more than 650,000 employees.
Constraints and Future Outlook
Higher employer social security contributions and potential increases in the minimum wage are cited as factors that could further constrain employer budgets in the coming years.
Report Credits
(Writing by William Schomberg; editing by Suban Abdulla)
