Wage increases still worth less than a year ago, study suggests

Pay rises are still worth less than a year ago despite an increase in the value of settlements in recent months, according to a new report.

Wage analysts XpertHR said median awards were worth 1.9% in the three months to the end of April, up from 1% for previous quarters.

This is the highest level it has reached since the three months ending November 2020 when it stood at 2%, research suggested.

Firms were continuing to freeze pay, with almost one in five of 162 settlements studied, resulting in no salary increase for employees.

XpertHR pay and benefits editor Sheila Attwood said: “There is a noticeable upturn in the data for April this year, and the first clear sign for a year that pay settlement levels are on the up.

“However, many organisations are continuing to exercise caution when it comes to the value of increase they are passing onto employees, and pay freezes are still being put in place.”