Median pay awards fall to 3% for first time since 2021 – IDR
The biggest group of pay awards, at 53%, were in the 3% to 3.99% range, up from 35% last month.
The median pay award across the economy dropped from 3.4% to 3.0% in the three months to July 2025, according to the latest figures from Incomes Data Research (IDR).
This was the first time the median hit 3.0% since December 2021.
The change was due to fewer employers giving pay rises of 4% or more, and only 9% of awards were worth 4% or above, down from 39% in June.
The biggest group of pay awards, at 53%, were in the 3% to 3.99% range, up from 35% last month.
IDR’s sample for the three months to July included very few awards from the public sector or not-for-profit area, so results mainly reflect the private sector.
Here, the median also fell from 3.4% to 3.0%.
Just 7% of private sector pay awards were worth 4% or more, compared to 38% in June.
Over half, at 54%, were worth 3% to 3.99%, up from 37% last month.
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