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UK employers raise pay by least in 10 months, Brightmine says - Finance news and analysis from Global Banking & Finance Review
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UK employers raise pay by least in 10 months, Brightmine says

Published by Global Banking & Finance Review

Posted on August 18, 2026

2 min read

· Last updated: August 18, 2026

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UK Employers Raise Pay by Least in 10 Months as Labour Market Softens

Pay Settlements and Labour Market Trends in the UK

Overview of Recent Pay Settlements

Aug 19 (Reuters) - Pay settlements by British employers inched down in the three months to June to a 10-month low, adding to signs of a softening labour market, a survey showed on Wednesday.

The median pay award by employers fell to 3.2% in the three months to the end of July, down from 3.3% in the previous three rolling quarters, figures from human resources data firm Brightmine showed.

Employer Caution and Commentary

"The fact that more than a third of matched pay awards are now lower than last year does suggest some employers are becoming more cautious," said Sheila Attwood, Brightmine's HR insights and data lead.

Survey Details and Context

Key Findings from the Brightmine Survey

  • 71% of settlements awarded were between 2% and 3.99%, while 3% was the single most common award value
  • 35% of settlements delivered a lower award than the previous year, for the same employee group, while another 35% remained unchanged and 30% were higher
  • Data based on 36 pay awards implemented between May 1 and July 31, representing pay settlements for approximately 762,000 UK employees
  • Official data on Tuesday showed the jobs market again weakened slightly in the second quarter
Reporting and Editorial Information

(Reporting by Andy Bruce; editing by David Milliken)

Key Takeaways

  • Median pay settlements dropped from 3.3% to 3.2% in the three months to end‑July—the lowest since late 2025, per Brightmine survey.
  • Over a third of matched settlements were lower year‑on‑year for the same employee groups, indicating employer caution.
  • Independent data show underlying wage growth remains higher—ONS reports average regular pay rising ~3.4% year‑on‑year, though real gains remain modest.

Frequently Asked Questions

What was the median pay award for UK employees in July?
The median pay award fell to 3.2% in the three months to the end of July.
How did pay settlements in the UK change compared to previous periods?
Pay settlements dropped to a 10-month low, down from 3.3% in previous rolling quarters.
What percentage of pay settlements were between 2% and 3.99%?
71% of settlements were between 2% and 3.99%, with 3% being the most common value.
How many UK employees were represented in Brightmine's data?
The data covered pay settlements for approximately 762,000 UK employees.
What trend was observed in terms of pay awards compared to last year?
35% of settlements delivered a lower award than the previous year, indicating increased employer caution.

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