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Year ends with low pay growth, XpertHR pay survey reveals

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As 2012 comes to an end there is no sign of a sustained increase in the level of pay awards, according to data released today by HR advice firm XpertHR.

Based on details of 1,600 pay settlements in the UK until the end of November 2012, the data showed the median basic pay increase (which excludes performance-related pay, bonuses and progression payments) in the three months to the end of November 2012 stands at 2%. This is unchanged on the reading for the previous month.

The data also showed that almost a quarter (23%) of pay awards in the three months to the end of November 2012 resulted in a pay freeze.

Over the year to the end of August 2013, 8.7% of employee groups not expected to receive a pay rise, the report added.

The survey found that the figures are coming just ahead of the busy January wage bargaining period, when approximately a quarter of all pay settlements take effect.

XpertHR pay and benefits, editor, Sheila Atwood, said: "Pay awards have ended the year on a low note, with the 2% median increase well below trend, and inflation.

"Even with the best intentions, employers will be bound by what they can afford to pay over the next year. Private sector employers are predicting pay increases in the region of 2.5% over the coming year, and we expect a continuation of pay freezes for some and few awards worth more than 3%."