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Pay deals holding up

Pay awards have maintained a strong position in the first month of the new year, but there is a softer outlook ahead, according to the latest IRS analysis.

On this page:
Median pay award at 3.5%
Key findings from the IRS pay databank
January pay deals in focus
Inflation report
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Additional resources on XpertHR
Table 1: Whole-economy pay awards, January 2007 to January 2008
Table 2: Private sector pay awards, January 2007 to January 2008
Chart 1: Pay review pattern, January 2007 to January 2008
Box 1: State of play in key negotiations

Key points

  • The median basic pay award stood at 3.5% for the three months to the end of January 2008.
  • Analysis of January deals alone reveals that pay settlements are likely to soften in the months ahead.
  • Headline inflation remains above 4%, which will put pressure on April pay-setters to award at, or above, this level.
  • Half of all pay deals continue to be worth more than in the previous year.