Annal Nayyar blogs a Report that highlights pay divide between public and private sectors

A new pay divide is opening in the UK with public sector workers more likely to see wages frozen than their private counterparts – a report suggests.

Analysis from the Chartered Institute of Personnel and Development (CIPD) found 54% of public sector employers froze staff pay in the 12 months to December 2014 in comparison to just over a third of private sector bosses.

The latest Labour Market Outlook found two fifths of the UK workforce saw either a pay freeze or cut over the same period, while a similar proportion received a wage increase of 2% or more.

The public sector is due to continue to ‘lag behind’ the private sector in terms of basic pay rises over the next year, with increases anticipated to stand at 1% compared to 1.5% in the voluntary sector and 2% in the private sector.

Analysts said that disparity on pay rises was creating ‘a tale of two workforces’ despite continuing job growth.


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