Managers' pay beats inflation

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The Independent Online
WHILE THE rest of the country is tightening its belt, pay rises for managers in industry are continuing to outstrip inflation.

According to a survey from the Reward Group, which surveyed 1,000 UK companies, managers' pay rose 5.6 per cent in the year to August compared with an inflation rate down to just 3.6 per cent.

Last year pay rises for managers averaged 8.9 per cent and in 1989/90 their pay rose 11.8 per cent. Most companies predicted that rises would be higher this year.

Senior managers fared less well than their junior counterparts, enjoying a 5 per cent rise in basic salaries to an average of pounds 30,000 a year. Average pay for junior managers rose 6.5 per cent to pounds 16,500.

Four out of five top managers still have a company car despite changes in the tax regime to penalise the perk.

Another survey, this time from the employment group Manpower, indicates a depressing year ahead, with more employers expecting to cut jobs than create them.

Of 2,028 companies questioned, 19 per cent said they expected redundancies, compared with 18 per cent saying they might take on new people. This is slightly better than last year, when 19 per cent said they would cut staff while only 16 per cent would create new jobs.