- Public sector take home pay growth has slowed over the last year, falling from 0.5% year-on-year in the three months to November 2012 to 0.3% for the same period in 2013
- In contrast, service sector workers have seen a marked improvement in wage growth, with annual growth of 2.7% in the three months to the end of November 2013 – up from 0.9% in 2012
- Annual take home pay in the manufacturing sector rose by just 0.5% in the three months to the end of November 2013, following a decline in the three months to October.
- Take home pay growth in the FTSE 350 sector grew to 2.4% year-on-year in the three months to the end of November 2013 – up from 0.9% in the three months to
Public sector workers have seen wage growth slow over the last year, according to the latest findings from the VocaLink Take Home Pay Index. It comes as the monthly index – from the company that processes the salary payments for more than 90% of the British workforce – reveals strong pay growth for service sector workers.
Average take home pay grew by 0.3% year-on-year for public sector workers in the three months to the end of November 2013, down from 0.5% in the same period last year. In comparison, annual wage growth in the services sector accelerated to 2.7% in the same period, up from 0.9% in the three months to the end of November 2012.
Meanwhile, annual take home pay growth in the manufacturing sector bounced back in the three months to the end of November, to 0.5%, after falling by 0.7% in three months to October. Wage growth remains relatively weak and only marginally higher than the 0.3% annual increase experienced over the same period last year.
David Yates, Chief Executive Officer at VocaLink, said: “As we approach the Christmas season, workers in the services sector have seen wage growth rise above the current rate of inflation however employees in other areas of the economy are failing to see their pay packets grow in line with rising prices. Public sector pay growth over the last 12 months has been much more subdued, which could suggest that the government’s pay freeze has had an effect and whilst wages in the manufacturing sector returned to growth after a dip the previous month, the pace remains sluggish and well below inflation.”
For more information and a copy of the report, please visit VocaLink’s website.