Pay Freezes

Pay Freezes affect the Public Sector…but not the Private Sector

The latest research on pay settlements from Income Data Services (IDS) has found that pay freezes have dropped to the lowest level since January 2009 but that, in the public sector, 35% of pay awards with effective dates in April resulted in pay freezes. The typical pay awards in the private sector rose to 2% in the three months to the end of April 2010, up from 1.9% in the three months to March. Ken Mulkearn, editor of IDS Pay Report, said: ‘Our latest figures present strong evidence that pay freezes – one of the key features of the recession – are now fading, in the private sector at least, as the economy stabilises. However, the picture in the public sector is very different, with the number of freezes rising. The number of employees affected by freezes is likely to rise as well, since the public sector bargaining groups are relatively large.’