Pay awards by British employers remained the highest in more than 30 years in the three months to May, keeping pressure on the Bank of England to raise interest rates again on Thursday.
Human resources data firm XpertHR said the median basic pay settlement in the March-May quarter remained at 6%.
That matches the record increases seen in the five rolling quarters before but well below inflation which stood at 8.7% in April (we’ll find out May’s inflation rate in just a moment…..)
Wednesday’s data includes pay awards agreed in April, a key month for pay deals between employers and workers.
Sheila Attwood, senior content manager at XpertHR, explains:
“Although inflation is beginning to fall as we enter the second half of this year, it still lies far ahead of pay rises, meaning employees will remain grappling with the effects of a real-terms pay cut.”