Planning for pay reviews in 2025
Pay increases over the past year have come in comfortably below the levels seen in 2023, as organisations react to the lower inflationary environment.
With plans now being made for pay increases in 2025, Brightmine reviews the latest data on pay award trends over the past year, and the outlook for 2025.
The past year has seen a marked slowdown in pay growth, set against a backdrop of falling inflation.
In the 12 months to the end of August 2024, the median pay award was 4.7%, down from 6% a year earlier.
Meanwhile, consumer price inflation (CPI) fell to 2.2% in the year to August 2024, down from 6.7% the previous year.
While the cost of living remains high, pay awards have outpaced CPI since October 2023, helping to ease financial pressures on employers and employees.
Will this trend continue, or will we see pay deals fall back below inflation?
Brightmine’s latest pay survey explored the plans organisations have in place for pay reviews over the next 12 months.
Brightmine’s Pay Forecast Report 2025 can be downloaded here.
Supplied by REBA Associate Member, Brightmine (FKA XpertHR)
Brightmine is a leading, global provider of people data, analytics and insight.
