Latest pay awards news: August 2024

The latest Brightmine analysis of UK pay data shows a continued slowdown in pay growth overall, with the median pay award returning to the lowest level seen this year at 4.5%.

The majority of pay deals are lower than the previous settlement received by the same group of employees. Almost three-quarters (73.1%) worth less than they were last year. Just 7.7% of deals were worth more.

This downward trend is set against a backdrop of falling inflation.

The analysis is based on 48 pay settlements that came into effect between 1 May and 31 July 2024, covering 743,755 employees.

Key findings of the analysis reveal that the interquartile range (the middle 50% of pay awards) has narrowed to 1.3 percentage points, the most common basic award is worth 5% and the median of all basic plus merit deals is 5.0%.

Chart 1: Pay review pattern – whole economy, July 2023 to July 2024

Public sector gets the green light on all pay recommendations

Following a long wait, the new Labour government has accepted in full the public-sector pay review bodies’ recommendations, which includes:

• A 6% pay uplift for all service personnel at pay points OR2-02
• A 5.5% increase for all NHS staff paid under Agenda for Change
• A 6% increase to national salary scales, pay ranges, and the pay element of contracts for doctors and dentists
• A 5% increase for all Fair and Sustainable National Bands in the prison service

Chart 2: Pay review pattern – public and private sectors, July 2023 to July 2024

Information and communication sector pay deals continue to lag

With a median pay award of just 3.5%, workers in the information and communication sector are seeing the lowest pay awards, while transport and storage workers are being awarded the highest median pay awards of 6.4%, followed closely by the construction sector at 6.1%. This is based on all deals effective year to date, 1 January to 31 July 2024.