The median pay award in the three months to the end of February 2009 has fallen to 2.6% (subscription required) according to the latest analysis by IRS, published to XpertHR today. This is the first time since March 2003 that the figure has sat below 3%.
The headline figure is 0.4 percentage points below the 3% recorded in the three months to January.
For the first time in the current recession IRS has recorded a pay cut, and pay freezes account for almost three in 10 (27.6%) of the pay awards recorded during the rolling quarter. A number of employers with a review date of 1 January 2009 have postponed the decision on awarding an increase until later in the year.
Analysis of a matched sample of awards shows that almost six in 10 (59%) are lower than the award the previous year, with one-third (31%) of awards higher and the remaining 10% set at the same level as a year ago.
- Has your organisation recently carried out an annual pay review? If so, and 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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