A significant two-third of employers in Britain are looking to reduce increments / pay hikes in 2025. About 72 per cent of the respondents of the survey, undertaken by Incomes Data Research (IDR), are employers from the private sector.
With the labour shortage not as worrisome as it was, and the pressure of inflation lifting a bit, about 45 per cent of the employers surveyed intend to hike pay albeit only by three to four per cent next year.
As per the IDR report, earlier in September 2024, the median pay settlement offered by organisations had dipped to 4.0 per cent in the May-July period. This was the lowest since August of 2022 and a drop from 4.8 per cent in the April-June period.
In February 2024, Reuters had reported that British employers were planning smaller wage increments over the coming year compared to three months ago; and that it was the first such fall in almost four years, indicating that employers were unwilling to bear higher labour costs.
The Bank of England is examining wage growth minutely and has been reducing borrowing costs, with interest rate at five per cent.
Meanwhile, it is interesting to note that as per a Guardian report a couple of months ago, King Charles would be enjoying a huge pay increment—a £45m pay rise! His annual income would go up by over 50 per cent. The increment is attributed to the increase in profits reported by the Crown Estate, which manages the property of the royal family of Britain. The profits had reportedly gone up from £442.6 million to £1.1 billion compared to the previous year.
