Average pay deals double to 2 per cent - Money - Business - Evening Standard
       

Average pay deals double to 2 per cent

Average pay deals have doubled to 2% in recent months, mainly due to rises in private firms in parts of the housing, care and food retailing sectors, according to a new report today.

A study of 66 settlements by Incomes Data Services (IDS) showed that a third involved a wage freeze, while one in five gave rises of at least 3%.

Ken Mulkearn of IDS, said: "Outside of those sectors that have been hardest hit by the recession, and where pay has been frozen, 2% is pretty much the floor for pay increases.

"This is the case in areas such as food retailing, where the major firms pay above the minimum wage and have not been affected as badly as other sectors by the recession, with profitability generally being maintained.

"The Government's recently announced policy on public sector pay means there will be three strands to pay review outcomes for public sector workers in 2010.

"The overall effect of the policy will be to hold back public sector pay, with the possibility of private sector pay growth pulling ahead once more, especially if the economy recovers and RPI inflation rises as predicted, back towards 3%."

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