Fewer firms now opting for pay freezes
Fewer firms are freezing the pay of their workers, although average rises have remained at 2% in recent months, according to a new study published today.
More employers are giving rises of 3% or more in a sign that higher-end deals are on the increase, according to an analysis by IDSPay.co.uk.
Around a third of deals, mainly in private firms, between May and July were worth at least 3%, with most around 2% and one in seven involving a pay freeze.
Manufacturing workers faced more pay freezes than those in service firms in recent months, the study of almost 50 settlements found.
Ken Mulkearn, of IDS, said: "As we might expect in the aftermath of a serious recession, basic pay rises remain modest, but the recovery in the business outlook and higher inflation are combining to place a certain amount of upward pressure on private sector awards. This is behind the growth in the higher-end settlements."