According to the latest Salary Trends Report by ECA International (ECA), UK employees in the private sector are expected to see a real salary increase of 0.8 percent in 2019, the equivalent of almost £20 a month (£237.35 per annum) for the average worker¹ before tax. This is following a better than expected salary increase for UK workers in 2018 (0.4 percent), originally forecasted to be among the lowest in Europe at 0.2 percent.
The real salary increase is calculated based on the difference between the forecast nominal salary increase (3 percent in the UK) and inflation² (2.2 percent).
Steven Kilfedder, Production Manager at ECA International said “The 0.8 percent salary rise that we’re expecting to see in 2019 is double what UK workers received last year. Although the UK’s nominal salary increase, at 3 percent, is expected to be among the highest in Western Europe, the real salary rise is in line with the European average because of higher inflation eating into workers buying power.”
A significant factor which could impact these figures however, is the UK’s impending withdrawal from the EU.
Kilfedder said “It is still very unclear what impact Brexit could have on inflation and salaries in the UK. Any deal that is made, or lack of it, could have far reaching implications on wage and price rises and these figures could change significantly depending on what happens between now and the official withdrawal date in March 2019.”