Employers in the private sector are expecting to increase rates of pay by 2.5%, according the new research.

The survey by XpertHR asked 127 private sector employers about their wage intentions over the next year, finding a predicted median rise of 2.5% across basic and performance-related pay.

The figure fell to two per cent when the increase was considered in terms of basic pay alone.

Three-quarters of respondents are expecting to offer a pay rise over the next year, while 11% are considering introducing a pay freeze over the same period.

Fifty-six per cent of those planning a pay rise cited inflation as their rationale, but the expected rise is likely to fall behind the rate of inflation.

Sheila Atwood, pay and benefits editor at XpertHR, describes these predicted pay rises as ‘anaemic’.

‘With two per cent to 2.5 per cent likely to be the going rate for the foreseeable future, inflation continues to outpace wage increases, with most employees seeing their pay fall behind in real terms,’ she said.

If you want to know what you can expect to earn over the next year, read about graduate salaries in 2013.

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