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Pay rises below inflation

Pay rises are languishing way below the rate of inflation. The median rise in wages was just 2.2 percent over the last year, according to a new report by pay research group XpertHR.

The group studied the pay settlements of 7.9 million workers and found median increases which were less than half the rate on inflation (5.2 percent) over the same period.

In about one in six cases wages had been frozen. This was usually in the public sector. The study also found that few companies deliberately link pay rises to inflation.

Sheila Attwood, of XpertHR, said: 'The modest growth in wages that we are currently seeing is likely to continue at least until the January wage round begins.

'Pay award levels remain historically low, and well below the rate of inflation. Few employers have made any efforts to mitigate this in other areas of reward as the finances are not available to do so.'

The majority of pay rises the report discovered were delivered on the basis of performance.

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