Private sector pay freezes continue to fall

2010-08-26

Pay freezes in the private sector have continued to fall, according to figures from Incomes Data Services (IDS).

In its latest pay report, IDS found pay freezes account for just under 15% of deals between May and July.

The report found the median pay settlement across the whole economy for this period remains at 2%, unchanged from the previous three-month period.

More employers are also warding higher-end pay increases, with more than 30% of deals worth 3% or above, while 70% are at or above the median of 2%.

Ken Mulkearn, editor of IDS Pay Report, said: “As we might expect in the aftermath of a serious recession, basic pay increases remain modest.

"But the recovery in the business outlook and higher inflation are combining to place a certain amount of upward pressure on private sector awards.

"These are the main factors behind the growth in the proportion of higher-end settlements, and the continued drop in the proportion of freezes.”