Jessica O'ConnorIn the Q1 of 2025, with the median pay award remained at 3% for the fourth consecutive rolling quarter, data from Brightmine has revealed.
Despite the recent increase in National Insurance (NI) contributions, Brightmine data indicated that a sharp drop in pay awards is unlikely in the near term.
Brightminecollected details of 125 pay awards that took effect between 1st January and 31st March 2025, covering the pay review outcomes for more than 192,000 employees.
The findings revealed that pay awards were heavily bunched around the median value, with the middle 50% of pay awards sitting between 2.5% and 3.5%.
There were a handful of pay freezes – from four organisations – recorded in the latest data, showing that while settlement levels have fallen, organisations for the most part are still offering pay rises.
Almost one-third (31%) of pay awards were worth exactly 3%, with a total of 58.4% worth between 2% and 3%.
Based on a matched sample analysis, 72.7% of pay awards in the current rolling quarter were worth less than the same group of employees received at their previous review.
Just 15.5% were higher compared with a year ago, with the remaining 11.8% at the same level two years in a row.
Sheila Attwood, HR Insights and Data Lead at Brightmine, said: “Currently the data isn’t showing any signs of a knee-jerk reaction to recent national insurance changes.
“However, we do know that employers are taking a watch and wait approach, so we expect to see that reflected in the second half of this year.
“The good news is that the latest GDP figures show stronger-than-expected growth of 0.5% in February, offering some reassurance for businesses.
“However, global uncertainty – particularly around the actions of the US government – continues to cloud the outlook. These two factors confirm our view that pay awards levels will remain steady in the near future.”
