Across the whole economy, workers are currently enjoying pay rises in the region of 3.8%, according to our latest analysis of pay trends. This is largely driven by the October 2008 uprating of the national minimum wage, also worth 3.8%. As we enter 2009, we expect pay bargaining to slow down, specifically on the back of falling inflation.

Public sector workers, however, are faring much worse than the whole-economy picture suggests. In this issue we present our annual round-up of pay awards in the public sector. Our key finding is that the median basic pay settlement for public sector workers is 2.5% in the year to the end of November 2008, which is 1.3 percentage points below the equivalent figure for private sector employees. Our feature examines the data in depth.

Other top stories in this issue include:

• Diminishing pay prospects could prompt executive exodus in 2009
• New tribunal award limits come into force
• Directors' pension benefits are superior to those of their staff, says TUC

IRS is conducting a major survey investigating how organisations manage redundancy. Participating in our research will enable your organisation to benchmark its redundancy practices and experiences, including redundancy compensation, and will entitle you to a free copy of the report in the new year.

The Pay and Benefits Bulletin team would like to wish readers a Happy Christmas and best wishes for 2009.

Sheila Attwood
Editor,
Pay and Benefits Bulletin

Pay reports recently added to the site:

Scottish government: 4.5% headline increase

UKAEA: 2.76% paybill increase

Pay review update: 19 December 2008

The latest pay review update table contains pay settlements for Caledonian Paper, Oxfam, Schneider Electric, the Scottish government, Superdrug and many more.

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Statistics and forecasts

The datafile contains the most recent inflation, earnings and labour market statistics, pay settlement data and inflation and earnings forecasts. Our panel of City and academic forecasters is currently expecting headline inflation to fall from an average 3.9% in the final quarter of 2008, to 0.3% in the final quarter of 2009. Average earnings growth is expected to average 3.6% in 2008 and 3.3% in 2009.

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From the blog

Launched and run by the editorial team that produces XpertHR and the IRS e-journals, the Employment Intelligence blog is regularly updated with news, comment and links to the latest employment developments. Recent posts include:

• Turning point for pensions
• TUC calls for £6.10 minimum wage
• Equal pay pioneer turns 100
• UK interest rates cut to 2%

Today's tip: be a part of the UK's largest pay monitoring service

The IRS pay databank is the most comprehensive source of pay settlement data in the UK, and is used to generate the IRS monthly figures on pay rises. You can help make even more of this valuable resource by adding your latest pay settlement to the database.

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