British Employers’ Pay Increases Remain Stable
LONDON (Reuters) – Pay increases granted by British employers remained at 3% in the three months to March, according to figures from human resources data firm Brightmine. This stability is likely to be welcomed by the Bank of England (BoE).
This marks the fourth consecutive rolling quarter of pay awards at that level, as well as the joint lowest pace of increase since December 2021.
BoE officials are closely monitoring how employers will respond to the increase in social security contributions—known in Britain as national insurance—and a higher national minimum wage, both of which took effect in April.
“Currently, the data isn’t showing any signs of a knee-jerk reaction to recent national insurance changes,” said Sheila Attwood, Brightmine’s senior content manager. “However, we do know that employers are taking a watch and wait approach, so we expect to see that reflected in the second half of this year.”
Britain’s minimum wage increased this month by almost 7%. Attwood noted that Brightmine has seen more pay deals awarded at the lower end of its range, but the overall picture remains one of stability.
The BoE is looking for indications that inflation pressure in Britain’s job market is lessening enough to support further cuts to interest rates, widely anticipated to occur on May 8.
Brightmine analyzed 125 pay settlements effective in the three months to March 31, covering around 192,000 employees.
Comments (5)
Maxwell Demkor
07:39 - 23/04/2025
Great one
Reuben Kehinde
07:00 - 23/04/2025
Pay rise is a good step in the right direction.
Ogochukwu Martha Ani
06:37 - 23/04/2025
Savi
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06:18 - 23/04/2025
Ok
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06:08 - 23/04/2025
Saivcoin