Total pay for UK employees increased by 2.1% (including bonuses) and by 1.7% (excluding bonuses) for the period October to December 2014, compared to the same period in 2013, according to research by the Office for National Statistics (ONS).
Its UK Labour market survey also found this represented the highest annual growth rate since April to June 2013.
The research also found:
- Higher bonuses were recorded in December 2014 than in December 2013 across private industry sectors, particularly finance and business services.
- In December 2014, average regular pay excluding bonuses was £457 per week before tax and other deductions, and the average total pay including bonuses was £489 before tax and other deductions.
- Between October and December 2013 and October to December 2014, regular pay for employees in Great Britain increased by 1.7%, which changed very little from the 1.8% rise recorded for the period September to November 2014 compared to the same period in 2013.
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Andrew Hunter, co-founder of search engine Adzuna, said “The government is clearly singing about the significant real wage growth [these] figures display.
”The coming together of favourable economic conditions, in particular low inflation, has allowed the year-on-year numbers to really pick up. The labour market has undoubtedly kicked up a gear compared to twelve months ago.
”We are at last seeing advertised salary improvements this month and employers lifting the lid on wages in a number of sectors.
“Qualified, in-demand construction and manufacturing professionals are seeing their salaries rocket, but on the flip slide, public sector, retail and hospitality staff aren’t seeing any clear growth in real wages. The data shows that the job market recovery is still theoretical rather than tangible for many.”