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August 9, 2022

People Management – Huge divide in wage growth between top and bottom earners requires immediate intervention, HR experts say

The UK’s highest earners are seeing pay packets rise by around 10 per cent while those on the lowest incomes are only experiencing wage growth of one per cent, new data from the Centre for Economics and Business Research (CEBR) has shown.

Despite the difference in pay growth between those at the top and bottom of the income charts, on a backdrop of inflation that has already hit near 10 per cent, the CEBR also found that even pay rises towards the top end of the scale (95th percentile) were not resulting in real pay growth.

In fact, while a small section of the UK workforce was seeing buoyant wage growth, overall real wage growth in the three months to May fell by almost one percentage point, meaning most workers were still out of pocket compared to where they were last year.

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