Total pay for employees in Great Britain, including bonuses, increased by 1.1% between August to October 2017 and August to October 2018, according to research by the Office for National Statistics (ONS).
Its UK labour market: December 2018 report also found that regular pay, excluding bonus payments, increased by 1% in real terms, having been adjusted for consumer price inflation, between the periods of August to October 2017 and August to October 2018.
In nominal terms, not having been adjusted for consumer price inflation, total pay increased by 3.3% between August to October 2017 and August to October 2018; the last time the annual growth rate was higher than this was May to June 2008.
Regular pay, in nominal terms, also increased by 3.3% between August to October 2017 and August to October 2018. The last time the annual growth rate rose higher than this was in September to November 2008.
Average total pay for employees in Great Britain, including bonuses, was £528 a week in nominal terms before tax and other deductions from pay in October 2018. This compares to £509 a week in October 2017. Average regular pay, excluding bonuses, was £495 a week for British employees in October 2018, before tax and other deductions. This compares to £479 a week in October 2018.
In real terms, average total pay for employees in Great Britain was £497 a week in October 2018, before tax and other deductions from pay, compared to £488 a week in October 2017. Average regular pay, in real terms, excluding bonus payments, was £464 a week in October 2018, before tax and other deductions from pay. This compares to £459 a week in October 2017.
Ian Brinkley, acting chief economist at the Chartered Institute for Personnel and Development (CIPD), said: “Wage growth has edged up slightly, driven by the finance and business service sector. Real earnings have also strengthened. Historically, real wage growth and productivity growth have gone hand in hand, but it remains to be seen if rising real wages will also be reflected in better productivity figures in the months ahead, given the current Brexit crisis.
“It’s vital that employers look at how they can invest in skills and adopt the right people management practices to boost productivity in their organisation and the UK overall.”