The first analysis of pay settlements effective in 2012 reveals a marked increase in the level of awards made, according to pay specialists XpertHR. Pay rises effective in January 2012 – exclusively in the private sector – are worth a median 2.8%. This is the highest level seen since December 2008.
Manufacturing pay awards continue to outstrip those in the services sector, something that has been seen since April 2010. Among the pay awards effective in January 2012, the median pay increase in the manufacturing sector is 3%, compared with 2.5% in private sector services.
The pattern of higher pay awards in the first few months of the year was something we saw in 2011 – the level of pay increases fell in April 2011 when the public sector pay freezes were added to the calculations and pay awards in the service sector were low.