Nearly one in ten UK employers (9%) are planning to cut their employees' pay in 2009 (external website) as the economic downturn continues to gain in severity, according to new research from the British Chambers of Commerce (BCC), reported in yesterday's Sunday Times.
The BCC poll, based on responses from 300 private sector employers, finds that the greatest proportion (43%) plan to freeze pay in the coming year.
These grim tidings are in stark contrast to our 2008 survey of private sector pay prospects, which sounded an optimistic note (subscription required), with employers expecting the median pay award to be worth 3.5% in 2008/09.
Have prospects really deteriorated this badly in the space of only a few months? As ever, our regular monthly IRS analyses of whole economy pay trends (subscription required) will be the best place to find out how things pan out once the new year arrives.
- 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.
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