Pay freeze for 75% of workers

3 August 2011

Three quarters of UK workers have not had a pay rise this year, says the Chartered Institute for Personnel and Development (CIPD).

One in 20 workers have had a pay cut and only 28% have seen an increase in the amount they take home each month. As most pay rises are decided between January and May it's unlikely those who have not received a rise so far will be getting one this year.

The dismal numbers reflect the government's pay freeze for most public sector staff.

Within the private sector, workers most likely to have seen their pay go up this year are in the manufacturing and finance industries while those least likely to have seen a pay rise are in the hotels, restaurants and construction sectors.

Salary increases are also directly linked to the size of an employer and people working for smaller companies are the least likely to have seen an increase in their wages.

The study was based on 2,000 employed people in the UK.

Charles Cotton, spokesperson at CIPD, says even those who are lucky enough to get an increase in their pay will find it below the current cost of living, resulting in further consumer belt tightening.

"We will see some increase in the number of private sector workers receiving a pay award in the second half of 2011, especially in the retail, catering and hotel sectors, as the increase to the national minimum wage comes into effect in October."

Have you seen an increase in your wages this year? Or are you one of the many workers experiencing a pay freeze? Let us know by leaving a comment in the box below, or vote in our poll.

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