Total pay increases by 2.4%

Pay increase-pay gao-2015Total pay, including bonuses, for employees in Great Britain increased by 2.4% between August and October 2015, according to the latest figures from the Office for National Statistics (ONS).

Its Labour market statistics, December 2015 also found that pay excluding bonuses increased by 2% between August and October.

In real terms, for October 2015, average regular pay (excluding bonuses) for employees in Great Britain stood at £463 per week before tax and other deductions from pay, up from £455 per week for a year earlier.

In addition, average total pay (including bonuses) for employees in Great Britain was £493 per week before tax and other deductions from pay, up from £484 per week for a year earlier

Mark Beatson, chief economist at the Chartered Institute of Personnel and Development (CIPD), said: “Today’s statistics suggest that job growth in the UK has well and truly recovered, following what seemed to be a pause earlier in the year. But wage growth remains subdued, and this makes it less likely that we will see interest rates increase during 2016.

“With very low inflation, the average pay packet is still increasing in real terms, but this will only be sustainable if productivity increases. This will require organisations to invest in technology, new systems and their workforce.”

Mariano Mamertino, economic research analyst at Indeed, added: “Even though the labour market continues to show signs of tightening, wage growth is falling back after gains in 2015. Near zero inflation and steady inflows of EU migrants may have contributed to the lacklustre wage rises for workers.

“Productivity and inflation are the determinants of real wage growth that we should watch for in 2016. A surge in productivity will be needed to boost the pay packet of the average worker.”