Over two-fifths of employers expect pay rises to match 2025 levels in 2026 – IDR
More than three-fifths of pay awards are likely to fall between 3% and 3.99%.
Over two-fifths (44%) of employers expect pay to rise at the same rate in 2026 as it did in 2025, according to research from Incomes Data Research (IDR).
More than three-fifths of pay awards are likely to fall between 3% and 3.99%.
A quarter of employers said pay rises this year would be higher than in 2025, while another quarter (28%) said they would be lower.
Affordability remains the main factor, with 96% of respondents saying it influences pay outcomes.
Inflation is also an important point for nearly two-thirds (65%), up from 60% at the end of 2024.
Zoe Woolacott from IDR said: “Inflation is currently higher than it was a year ago and this has applied upward pressure on pay to some extent and the findings from our poll show that inflation continues to figure relatively highly in employers’ concerns.”
Among the undecided employers, nearly two-fifths (39%) think the pay increase will be between 3% and 3.49%.
Around a fifth (22%) predict rises between 3.5% and 3.99%.
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