Managers’ pay packets will fail to keep up with cost of living in 2013
Managers’ pay will struggle to keep pace with inflation this year, especially those in the public sector, who face rises of less than 1 per cent, according to a new report.
A forecast by pay specialist Incomes Data Services (IDS) said average rises for managers and professionals will be around 2.2 per cent, falling to 0.7 per cent for those in public sector organisations.
Private sector pay awards are expected to be more generous, with average rises of 2.6 per cent.
Adam Cohen of IDS said: “Our latest figures suggest that 2013 will be the third year running that managers and professionals will not have seen above-inflation pay rises.
“Pay awards declined sharply in 2012, and the signs from HR departments are that many managers and professionals will again see their pay struggle to keep pace with inflation. Public sector managers in particular are only likely to enjoy inflation-busting pay rises if they secure a promotion or move jobs.”
The number of managerial pay freezes increased last year to 16 per cent, compared with 13 per cent in 2011, added IDS.
A separate report showed an increased number of workers in the City of London are not expecting a bonus of any kind this year. Recruitment firm Astbury Marsden noted that almost half of City workers said pressure from the government and financial regulators would have a detrimental impact on their pay.
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