Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2022 10 05T124051Z 1 LYNXMPEI940O8 RTROPTP 4 USA MARKETS CREDIT - Business Express
Figurines are seen in front of displayed stock graph and word "Inflation" in this illustration taken June 13, 2022. REUTERS/Dado Ruvic/Illustration

Despite 30-year high, wages continue to fall behind inflation, finds XpertHR


  • In the three months to the end of October 2022, the whole-economy median pay award remains at 4%, unchanged for seven consecutive rolling quarters.
  • Median basic pay awards at their highest since 1992; however, pay awards remain below the rate of inflation

The latest data from XpertHR shows that pay settlements remain at their highest level for 30 years and are worth a median 4% in the three months to the end of October 2022. Over the same period last year, the median pay award was worth just 2%.

However, the gap between wages and inflation remains stark, with retail price index (RPI) inflation at 12.6% in September 2022 and consumer price index (CPI) inflation at 10.1%.

Latest pay award findings:

Based on the outcome of 38 pay awards effective between 1 August 2022 and 31 October 2022, covering more than 555,000 employees, XpertHR finds:

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.
  • Median pay award stable. The whole-economy median pay award in the three months to the end of October 2022 is 4%, unchanged on the level seen in the previous six rolling quarters.
  • Wide interquartile range. The upper quartile, at or above which the top quarter of pay awards lie, is at 7.6%, from 5% in the previous rolling quarter; while the lower quartile is at 3.2%, from 3% in the previous rolling quarter.
  • Most common pay award is 4%. Almost a quarter (22.2%) of basic pay awards are set at 4%, making this the most common award.
  • Majority of pay awards higher. Among a matched sample of pay awards, 89.3% of employee groups have received a higher pay award than in the previous year

Public sector continues to lag behind private sector

The private-sector median figure sits at 4% in the year to the end of October 2022, up from 1.9% in the year to the end of October 2021. In both the private sector and the whole economy, the interquartile range is between 3% and 5%.

In the public sector, the median pay award on an annual measure is worth 3.3% compared with 1.4% in the 12 months to the end of October 2021, with the middle half of pay awards worth between 2.3% and 4.7%.

Sheila Attwood, XpertHR senior content manager, data and HR insights, said: 

“The gap between median pay awards and inflation is a continuing challenge for organisations. However not only is there the challenge of high inflation, but tight labour markets and continuing industrial action are pressuring organisations further to find the right balance between employees’ pay expectations and affordability. It is likely that affordability will continue to be the driving factor in final pay decisions as economic uncertainty looms at the forefront of many businesses’ concerns.” 

Recent Post: