Total pay increases by 2.4%


Total pay, including bonuses, increased by 2.4% in Great Britain between April-June 2015 and April-June 2016, according to the Office for National Statistics (ONS).

Its UK labour market: August 2016 report also found that for June 2016, average regular pay, excluding bonuses, was £472 a week before tax and pay deductions. This is an increase from the June 2015 figure of £462 a week.

Average total pay, including bonuses, increased from £490 a week in June 2015 to £501 a week in June 2016.

Since 2000, average total pay in nominal terms has increased by 61%, rising from £311 a week in January 2000 to £501 a week in June 2016.

Regular pay, excluding bonuses, increased by 2.3% between April-June 2015 and April-June 2016.

In real terms, adjusted for consumer price inflation, regular pay increased by 1.9% between April-June 2015 and April-June 2016, and total pay increased by 2.1%.

Ian Brinkley, acting chief economist at the Chartered Institute for Personnel and Development (CIPD), said: “This is another set of positive figures, with employment growing, unemployment falling and stable wage growth. It is still too early to see a Brexit effect, as the statistics cover the three months to the end of June.

“They do suggest, however, that in the short term the labour market remains resilient. Employers should, therefore, continue to take a strategic approach to investment in people and new technologies, and invest to address long-term challenges like improving productivity, rather than be blown off course by short-term pressures.”

Ben Brettell, senior economist at Hargreaves Lansdown, added: “[The] unemployment and wage growth numbers from the ONS cover the three months to the end of June, and as such reflect pre-referendum conditions. Nevertheless, signs here are also encouraging, with unemployment remaining at an 11-year low of 4.9% and wage growth ticking up slightly to 2.4% year-on-year.”