Private sector pay to rise by 3%
Private sector employers who have made plans intend to increase pay by just under 3% this year, according to a new survey. But only four-out-of-ten companies surveyed have so far finalised their plans for 2021 pay movements.
The research, by the Chartered Institute of Personnel Development (CIPD) and Industrial Relations News, revealed that higher increases – averaging over 3.6% - are planned in IT firms that have made decisions on pay. The planned average in retail and distribution is far lower at 2%.
The research, which surveyed 225 firms in unionised and non-union sectors, also found that 2020 pay increases were slightly lower than originally planned. On average, pay rose by 2.75% among the companies surveyed, compared to earlier plans for 2.8% increases.
Some 5% of companies reduced pay last year, though none had planned to do this when they were surveyed in early 2020. Just 1% of firms surveyed said they planned to cut pay this year.
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