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Employee Benefits News

Latest News
29 Feb 2016

Total pay for GB employees increases by 1.9%

The Office for National Statistics (ONS) has recently released a report showing that average total pay, including bonuses, for employees in Great Britain went up by 1.9% between October and December last year. If bonuses are excluded, total pay went up by an average of 2%.

As detailed on the Employee Benefits website, the Labour Market Statistics: February 2016 report also included details regarding average weekly pay. It was found that in December 2015, average regular pay excluding bonuses was £465 a week before tax and other deductions. This marks a happy increase compared to the £456 recorded in December 2014. When bonuses are taken into account, average total pay was £496 a week in December 2015 – another increase from the £489 measured a year previously.

Gerwyn Davies, the labour market advisor at the Chartered Institute of Personnel and Development (CIPD), noted however that the statistics show how GB is still “a long way off from the 3% increases that were expected”; she said that employers are citing “inflation and increases in employment costs as reasons why they are limiting pay rises.”

Ben Brettell, a senior economist for Hargreaves Lansdown, added further comment, claiming: “The trend for decelerating wage growth continues; 1.9% is the slowest for a year, and emphasises that there is very little inflationary pressure coming from the labour market.”

He went on to note that actually, continued low price inflation “could be depressing wage inflation as it leads workers to accept lower pay settlements, leading to a vicious cycle where both price and wage increases remain depressed.”

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