Half of public sector groups get a pay freeze

As the April pay bargaining round in the public sector gets into full swing, the latest figures from pay specialists XpertHR [£] reveal that half of pay awards in the public sector have resulted in no increase for staff.

Of 29 pay reviews recorded in the public sector effective in April 2012, half (55.2%) resulted in a pay freeze. In contrast, 15.1% of pay reviews in the private sector were for a freeze in pay - dominated by those in the not-for-profit, and paper and printing sectors.

April is the busiest month of the year for pay settlements, with around four in 10 pay awards settled in this month. Across the economy as a whole, the median basic pay award in the three months to the end of April 2012 stood at 2%, down 0.6 percentage points from 2.6% in the previous quarter.


However, when broken down by sector, the median pay award in the private sector in the three months to the end of April 2012 stands at 2.5%. This is marginally higher than the 2.3% recorded in the same period a year ago.

But there is continued evidence of some higher increases being awarded. Almost three in 10 (28.4%) private sector pay awards are worth 3% or more, and the most common pay award in the private sector is 3%.

The figures highlight the continuing gap between pay awards and retail prices index (RPI) inflation. Figures released on 22 May revealed that RPI fell just 0.1 percentage point to 3.5% in April. Whole economy pay awards are now 1.5 percentage points below inflation - the biggest gap this year.
Rachel Sharp  | | Comments (0) | TrackBacks (0)

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