Pay deals in the private sector for 2012 are coming in at higher levels than the median recorded during most of 2011, according to research by Incomes Data Services (IDS).
The IDS pay report found the increase was due to higher pay deals in the manufacturing sector, particularly in general engineering, and car and components manufacturing.
Of the 30 pay deals recorded so far in 2012, 63% are at 3% or above. Many of these are subsequent stages under multi-year deals with either guaranteed rises or increases linked to retail prices index (RPI) inflation, but new January deals are also coming in above the 2.5% median that pertained for much of 2011.
The research found that pay deals in the final quarter of 2011 were at similar levels to those recorded throughout the year, with a median increase of 2.5%, and more than half of all deals being worth between two and 2.99%.
Ken Mulkearn, editor of IDS pay report, said: “Private sector pay settlements look like they could be higher, on average, than last year, but the picture so far is only a partial one.
“If this turns out to be the case, and inflation continues to fall, private sector workers are likely to welcome the prospect of an easing-off in the squeeze on their incomes that most of them experienced over the past 12 months.”
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