The median basic pay increase for utilities workers is 4.3% over the 12 months to the end of August 2008. This is up from 4.1% the previous year. It is also a full percentage point above the whole economy median for the year to 31 August 2008 (3.3%).

Joint second place in the pay league table (subscription required) is shared by employees in three sectors - transport and communications, construction and finance - each with a median pay award worth 4% in 2008.

IRS analysed around 1,400 private sector pay awards over the year to 31 August 2008, covering more than 3.3 million employees.

A recent IRS survey of 268 private sector employers found that they are predicting a median 3.5% pay increase (subscription required) for pay awards in the coming year.

My colleague, IRS Pay and Benefits editor, Sheila Attwood comments that:

High headline inflation continues to exert a strong influence on private sector pay awards. Utilities workers in particular have benefited from the widespread use of inflation-linked long-term pay awards in their sector, which have pushed them to the top of our pay league table.

But workers across all sectors of the economy continue to receive pay awards well below the rate of inflation. Looking ahead, private sector employers are optimistic that pay awards will remain around 3.5% next year. It remains to be seen how this optimism will hold up in light of the expected collapse in inflation and the full onset of the economic downturn.

• Has your organisation recently carried out an annual pay review? If so, and if it has now been settled, please get in touch so that we can add your organisation's pay award to the IRS database.