- Friday, 28 August 2009The average pay rise for British workers currently stands at only one per cent, according to the Incomes Data Services.
The results are the lowest median pay settlement since the surveys electronic records began.
With inflation still at record lows, such small increases are not too affecting, though diminishing pay rises could be detrimental in the future if the surrounding economic situation deteriorates – a factor that could increase
individual voluntary agreement (IVA) take-up rates.
Tony Dolphin, senior economist at the IPPR, believes that the threat of deflation was something that people should 'keep their eye on'.
He said: "The key probably comes in twelve to eighteen months' time, assuming that the economy is coming out of recession. If these numbers are still coming in at zero then we have got a problem – if they've started to pick up with profits and with the economy then we don't."
The Industrial Relations Services leant its support to the survey, revealing that approximately 40 per cent of all pay deals being settled are pay freezes.
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