Pay rises running at half the rate of inflation

Pay rises continue to languish below the rate of inflation, with median rises of 2.2 per cent in the past year, according to a new report.

A study of 1,500 settlements covering 7.9 million workers showed median rises of less than half the Retail Price Index rate of inflation of 5.2 per cent over the same period. Pay research group XpertHR said its findings revealed few firms link their pay rises to the rate of inflation.

Wages were frozen in about one in six cases. Sheila Attwood at XpertHR said: "The modest growth in wages is likely to continue until January."