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UK employers hold pay deals at 4% before expected fall in 2025, survey shows

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Pay deals awarded by British employers were steady in the three months to November and are likely to slow next year as companies economise to meet higher tax bills introduced by the new government's first budget,
According to a Reuters article published on December 18, 2024, UK employers are currently holding pay deals at around 4% before an anticipated decline in 2025. A survey by the Chartered Institute of Personnel and Development (CIPD) indicates that median basic pay settlements are expected to fall to 3% in 2025, influenced by a decrease in inflation rates. Despite this, the CIPD warns that the labor market remains tight, with many sectors still facing recruitment challenges. The survey also highlights that while pay growth has been strong, it has not kept pace with inflation, leading to a real-terms pay cut for many workers. Additionally, the report notes a significant variation in pay awards across different sectors, with public sector workers generally receiving lower increases compared to their private sector counterparts.

Read the Full Reuters Article at:
[ https://www.reuters.com/world/uk/uk-employers-hold-pay-deals-4-before-expected-fall-2025-survey-shows-2024-12-18/ ]