Employment Law Cases

Average basic pay expectations rise

Median basic pay award expectations for the next 12 months remain unchanged at 2%, but average basic pay expectations have risen from 1.8% to 2.1% over the last quarter.

This emerages from the Spring 2018 Labour Market Outlook (LMO) Survey from the CIPD and is, says the CIPD, consistent with other survey indicators which also point to an increase in pay growth, albeit at a more subdued level (e.g. that from XpertHR). A similar gap can be found between the LMO pay indicator and the official average weekly earnings measure, which has increased by 2.8% over the past year.

Median basic pay increase expectations are unchanged in the private sector (2%) and public sector (1%) compared with the LMO previous report. However, basic pay expectations in the voluntary sector have increased to 2% from 1.5%. Median basic pay award expectations in the manufacturing and services sectors are also 2%.