Total pay, including bonuses, increased by 2.3% for employees in Great Britain between July-September 2015 and July-September 2016, according to the Office for National Statistics (ONS).
Its UK labour market: November 2016 report also found that average regular pay, excluding bonuses and before tax and other deductions, was £475 a week in September 2016. This compares to £463 a week in September 2015.
Average total pay, including bonuses and before tax and other deductions, was £505 a week in September 2016. This is an increase from £493 in September 2015.
In nominal terms, where pay has not been adjusted for consumer price inflation, regular pay excluding bonuses increased by 2.4% between July-September 2015 and July-September 2016.
Average total pay in nominal terms increased from £311 a week in January 2000 to £505 a week in September 2016, representing a rise of 62.2%.
In real terms, adjusted for consumer price inflation, both regular and total pay increased by 1.7% between July-September 2015 and July-September 2016.
Ben Brettell, senior economist at Hargreaves Lansdown, said: “The UK’s labour market continues to surprise with its resilience to the Brexit shock. The unemployment rate fell unexpectedly to a new 11-year low of 4.8% in the three months to September. This is yet more evidence that the labour market and the wider economy have fared better than expected since June’s referendum.
“Wage growth held steady at 2.3%, but it’s probable pay will fall in real terms over the coming year or so.”
Gerwyn Davies, labour market adviser at the Chartered Institute of Personnel and Development (CIPD), added: “While wage growth remains stable at just above 2%, CIPD research suggests there is likely to be downward pressure on wages over the coming year, partly because a weaker pound will increase costs for many businesses and partly because of a rise in employment costs as a result of the introduction of the national living wage, pension auto-enrolment and the forthcoming apprenticeship levy. This could lead to a return of the ‘squeezed middle’ phenomenon, with star performers and national living wage recipients the key beneficiaries.”