The latest data from XpertHR shows that the median basic pay increase in the three months to the end of April 2022 was worth 4 per cent, the highest recorded level since September 1992. Pay awards held at 3 per cent over the previous three rolling quarters, but a combination of statutory pay increases at the start of April and continued pressure from rising inflation contributed to the one percentage point jump seen this month.
Despite this increase, however, pay awards still lag five percentage points behind the latest Consumer Price Index which stands at 9 per cent, up from 7 per cent in March.
The latest pay award findings show that based on the outcome of 255 pay settlements with effective dates between 1 February 2022 and 30 April 2022, covering more than 830,000 employees:
• Interquartile range widens: The middle half of deals are worth between 2.6 per cent and 5.5 per cent. This compares with a range of 2.5 per cent to 4.8 per cent in the previous rolling quarter.
• Most pay awards are higher than the previous year: Among a matched sample of pay awards, 80.4 per cent are higher than the same group received the previous year. Just 7.3 per cent are lower, and 12.3 per cent are the same.
• Pay freezes remain rare: Just 4.7 per cent of the total sample saw their pay frozen in the three months to the end of April 2022.
“The jump in the median pay award to 4 per cent is a welcome rise following three successive months of pay awards being held at 3 per cent, but when compared against inflation, the increase is not enough,” says Sheila Attwood, XpertHR pay and benefits editor. “The deepening gulf between pay and inflation continues to pose financial challenges to UK employees struggling to keep up with the rising cost of living.
“Where businesses cannot afford to track wage rises with inflation, employers should consider other support and incentives,” she says. “From a business perspective this will help with the recruitment and retention of top talent, but more importantly, it ensures staff will receive the support they need to get them through this challenging period.”
