Wage growth | HR must 'be creative with benefits' as pay rises hit two-year low

UK pay rises have hit the lowest mark since June 2022, while the majority of new pay deals are now lower than in 2023, the latest data from HR data and insights provider Brightmine shows.

Brightmine’s analysis shows that the median basic pay award in the three months to the end of August 2024 was 4%, remaining the same as in the previous quarter (revised down from 4.5%). Almost three-quarters (72.7%) of matched sample pay awards in the latest quarter were worth less than the same group of employees received a year ago, with only one-in-10 (11.4%) being higher than last year.

Public sector pay rises outperforming private sector

Following the change in government, one of the first actions of the new Labour chancellor in July was to accept the recommendations of the pay review bodies, resulting in above-inflation pay rises for millions of public-sector workers.

Over the 12 months to the end of August 2024, the median pay award in the public sector sits at 6%, reflecting increases for several of the groups covered by the pay review bodies.