Pay Freeze for 60% and Pay Cuts for 6% of UK Employees

15th August 2011

Some UK employees have begun to feel the crunch of poor economic times reflected in their pay cheque. New research from the Chartered Institute of Personnel and Development, or CIPD, has found that three in every five working United Kingdom employees have received pay freezes this year.

The CIPD also found that six per cent of employees have experienced a cut in their pay since January of 2011. Although things aren’t bleak for everyone, with twenty-eight per cent of UK workers being handed a raise in their pay, the CIPD’s performance and reward adviser Charles Cotton states that even these employees who got a rise would still have found their budgets a little tighter than usual.

Cotton went on to explain that those who received a pay raise would still find it hard to make ends meet since the cost of living has recently increased.

Employees within the private sector who were given pay raises were most likely to have worked in manufacturing and finance, while those who were least likely to see raises worked in hotels, restaurants, and construction. 77% of workers within the public sector experienced neither, instead seeing their pay frozen.

According to Cotton, we should expect to see some pay awards in this second half of 2011 for those working in private sectors with the increase of national minimum wage. This would be most likely to affect those in retail, catering, and hotel sectors. However, since the time frame between January and May is the busiest time to pay awards in the private sector, those who have not received a pay rise thus far should not look forward to getting one. – Fill any job role with a fixed fee recruitment cost in the uk. No upfront costs