Data predicts 5 per cent pay hike by next year, but this won’t be “inflation proof”
A survey has found that the majority (91 per cent) of employees will receive a pay rise next year as inflation and skills shortages continue to bite.
The poll found that the median basic pay award in the 12 months to the end of August was set to rise by 5 per cent, with a projected 29 per cent of employers planning to award this.
The data from 323 private sector organisations revealed the vast majority (89 per cent) of businesses attributed their pay increases to the cost-of-living crisis, while just over three-quarters (78 per cent) said the intention could be attributed to skills shortages.
The survey found that pay awards in the coming year were predicted to fall between 0 and 15 per cent. The middle half of deals were projected to be between the relatively wide range of 3.5 per cent and 6 per cent.
However, of those who mentioned that there could be negative factors of giving pay rises, a third (32 per cent) cited affordability as an issue.
Wage inflation is said to be at 5.4% while inflation was at 10.1 per cent. Businesses are clearly having to look at controlling costs whilst employees will be conscious of rising bills.