Average earnings break through pounds 20,000 mark
Monday 05 July 1999
The average pay package now stands at pounds 20,700, compared with pounds 20,042 a year ago, the pay research group Incomes Data Services (IDS) said. This is the first time these figures have been published.
The index of earnings for full-timers rose by 3.6 per cent over the 12 months to April compared with an inflation rate of 1.6 per cent over the same period. But IDS said that the level of pay settlements was falling despite fears that a combination of the National Minimum Wage and the approaching millennium would force pay levels up.
"Neither pay settlement levels nor average earnings figures are showing any upward blip as a result of the minimum wage coming into operation," IDS said. "While the new measure must have had some impact on average earnings, the host of other factors influencing the figures make it impossible to gauge the effect."
The latest analysis of pay reviews showed about half of settlements were worth between 2 and 3.4 per cent.
IDS said that the number of settlements below 3 per cent were rising, although few firms are settling below a "floor" of 2.5 per cent.
But pay rises are still running well ahead of inflation, with one in five deals worth over 4 per cent. Inflation was just 1.3 per cent in May.
The Bank of England, whose Monetary Policy Committee sets interest rates, warned in its quarterly inflation report in May that earnings growth might no longer be falling.
It said that it feared earnings growth remained higher than settlements because of bonuses and merit-based pay.
But it said comparisons were difficult because the Average Earnings Index was only reinstated in March following a review commissioned by Gordon Brown, the Chancellor.
IDS's average pounds 20,265 annual earnings compares with a figure 25 years ago of just pounds 2,480 a year for male full-timers and pounds 1,400 for women.
Changing pay levels are only part of the shift in working practices. According to another report out today, Britain is on the brink of a "workstyle revolution" as the 9 to 5 working week becomes consigned to history.
Flexible working is now widespread, with many firms reporting increased performance. The Institute of Management said 8 out of 10 employers operated flexible working to meet changing business demands, remain competitive and give employees the chance to juggle home and work life. Flexible working includes working from home, job sharing, shift-work and school term-time working.
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
#FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash live: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...