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A third of pay awards reach 4% or more, median holds at 3.5% – IDR

The median pay increase stayed at 3.5%, while the proportion of higher awards grew from 21% in March to 33% by April. 

A third of pay awards reach 4% or more, median holds at 3.5% – IDR
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A third of pay awards across the economy were worth 4% or more in the three months to April 2026, according to figures from Incomes Data Research (IDR). 

The median pay increase stayed at 3.5%, while the proportion of higher awards grew from 21% in March to 33% by April. 

This pushed the upper quartile up to 4.0%.

April remained the most popular month for pay setting.

The median in manufacturing and production held at 3.5%, with the average rising to 3.6% due to more increases worth 4% or more. 

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Over a third of manufacturing pay rises reached at least 4%, compared to a fifth in March. 

These higher awards were common in engineering and among employers in energy and water.

The median pay award in private services dropped from 3.5% in March to 3.3%, as more pay outcomes fell below 3%. 

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Nearly a quarter of awards in this sector were at that lower level, up from 15% in March. 

However, the proportion of higher-end increases worth 4% or more grew from 21% to 36%, pushing the upper quartile up to 4.0%. 

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These awards were seen in air transport, financial services, hospitality and retail.

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Zoe Woolacott from IDR said: “Although the National Living Wage has a less direct impact in manufacturing, compared to private services, we have observed an increase in the proportion of higher-end pay increases worth 4% or more among manufacturing employers. 

“They still face pressures to offer competitive rates of pay in order to recruit and retain staff.”