The median basic pay rise in the three months to April 2009 was worth just 1.5%, according to the latest analysis from IRS. This is the lowest level since we began collecting pay settlement data in 1971. A main pattern emerging among pay settlements is the increasing use of pay freezes, with more than three in 10 pay awards now awarding no pay rise.

A key determinant of pay settlement levels is the rate of retail prices index (RPI) inflation. This is also now at a record low, of -1.2% in April 2009. Our economic outlook takes a look at the forecasts for RPI inflation over the remainder of the year. We also examine the likely direction of other measures used by pay-setters in determining the value of pay increases, including unemployment and earnings growth.

Other top stories in this issue include:

• Minimum wage to increase by just 7p per hour from October 2009
• Women's earnings growth outstrips men's between 1997 and 2008
• UK 2009 pay rises among lowest in the world

Also in this issue we present detailed coverage of five new pay settlements: BMW, Brother Industries, Cambridge Housing Society, the plumbing industry and West End theatre staff.

IRS is conducting a major survey investigating the use of shiftworking. The aim of this research is to provide benchmarking information on shiftworking practices and rates and to assess how the arrangements covering shiftworking can most effectively be managed.

Sheila Attwood
Editor,
Pay and Benefits Bulletin

Pay reports recently added to the site:

Brother Industries: 4.2% basic increase

West End theatre staff: 12.5% increase to minimum weekly rate

Plumbing industry: 5% inflation-linked increase to minimum rates

Cambridge Housing Society: 3% cost-of-living increase

BMW Group Plant Oxford: 3.8% basic increase

Pay review update: 29 May 2009

The latest pay review update table contains pay settlements at the Alzheimer's Society, BMW Group Plant, Furniture Trade Joint Industrial Council, Scottish & Southern Electricity, Solway Foods, Telegraph Media Group and many more.

View article in full

Print article

Forward to a colleague

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 expects retail prices index (RPI) inflation to fall from its current level of -1.2% in April 2009 to -2.7% in the third quarter of 2009. Earnings growth is expected to average between 1.8% and 2.1% throughout 2009.

View article in full

Print article

Forward to a colleague

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:

• Why negative RPI inflation spells bad news for 2009 pay awards
• Inflation Report May 2009: Are the green shoots of economic recovery "withering" already?
• Why women should think like men when it comes to salary
• National minimum wage 2009/2010: 1.2% increase to £5.80 per hour announced for October 2009

Today's tip: save an article to read later

Found what you want but don’t have time to read it? At the top of every article page on the website is “save this article” text link. Click once and it goes into your Saved Articles file. All saved articles are listed in the order you added them - to sort them alphabetically, click "save by name".

Print all articles in this newsletter

This newsletter now has a "print all" button. Before pressing it, please be aware that this uses a lot of paper. For the sake of the planet and your toner cartridge, consider whether or not you need to use it. If you press "print all", this will send to your printer all articles linked from the newsletter. Print all articles.