The latest data from XpertHR shows that pay awards are at their highest level for 31 years and are worth a median 5 percent in the three months to the end of November 2022.
However, inflation continues to outstrip pay increases by a wide margin, meaning real wages are in decline and are predicted to continue falling for some time.
The latest pay award findings
Based on the outcome of 25 wage reviews with effective between 1 September and 30 November 2022, XpertHR finds that the median pay awards move to 5 percent.
The midpoint whole economy basic pay settlement over the rolling quarter to the end of November 2022 has reached 5 percent, up one percentage point on last month’s figure.
The research also found that the majority of awards have been higher. Among matched sample of pay awards, almost nine in 10 (88%) of employee group received a higher pay award than at the time of their previous pay review
Also, it was shown that pay settlements vary markedly in value, with the lowest end of the spectrum witnessing a 2 percent rise and the largest increase being 10.1 percent.
The private sector still lies ahead
The median basic increase in the private sector over the year to the end of November 2022 is 4 percent, compared to 2 percent for the 12 months to the end of November 2021.
However, the 2022 median figure for the public sector lags behind at 3.8 percent and in 2021, public sector employees received a median basic pay award of a meagre 1.4 percent.
Sheila Attwood, XpertHR senior content manager, data and HR insights, said:
“The cost-of-living crisis continues to be high on the agenda of many pay setters as a tumultuous year draws to a close. A sharp spike in inflation coupled with a tight labour market has inevitably placed an upward pressure on wages.
“December will be a crucial month given the current wave of industrial action taking place in the UK, in what is being described as another ‘Winter of Discontent’. It is more important than ever that employers seek to strike the right balance between employees’ pay expectations and affordability.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
