Pay settlements awarded by British employers held steady in the three months to April despite an increase in the country’s minimum wage, according to a survey that was published the week before the Bank of England’s (BoE) interest rate decision.
Incomes Data Research (IDR) said on Monday that the median pay rise awarded by major employers was 3.5% in the February to April period, the same as in the three months to March.
The BoE, which is expected to leave interest rates unchanged at 3.75% next week, is monitoring pay growth as it gauges inflation pressures in the economy, which investors view as very exposed to higher energy prices caused by the war in Iran.
IDR survey also showed:
- The proportion of firms offering pay rises of 4% or more rose to 33% in April from 21% in March, reflecting bigger pay rises in engineering, energy and water companies.
- IDR said April was a month with higher pay awards as the minimum wage rose by 4.1% to £12.71 ($17.11) an hour for those aged 21 and over.
- Pay awards in private services sector fell to 3.3% from 3.5% in March, though there were bigger increases in retail and hospitality jobs paid close to the minimum wage.
- The survey was based on 166 awards between February 1 and April 30 which covered more than 3.3 million workers.
($1 = 0.7428 pounds)
(Reporting by Suban Abdulla; editing by David Milliken)
