Figures show rise in public sector take home pay
Take home pay in the public sector has increased, showing annual growth of 1.7% for the three months to August, according to this month's VocaLink FTSE 350 Take Home Pay Index.
This contrasts with the private sector, where pay growth has declined for the second consecutive month, hitting 2.7% in August, down from 2.9% for the three months to July, as measured by the VocaLink FTSE 350 Take Home Pay Index.
A key reason for public sector pay increasing could be annual pay increments related to length of service, as research from the Hay Group shows only 21% of public sector organisations have plans to freeze such increases.
Mark Thompson of Hay Group suggests the public sector should 'make the pay system more flexible and performance related.'
Mr Thompson said: 'Pay for results should be encouraged, but over a quarter of public sector organisations (are) freezing these payments or actively considering doing so. Public sector leaders must think again.'
Douglas McWilliams, chief executive of economics consultancy Cebr, said the figures corroborate other recent economic indicators such as the Purchasing Managers Index.
'With further public sector job losses over the coming years and a tough trading environment for many private sector businesses, labour market conditions are not expected to improve significantly in the short-term, making only modest annual increases in gross income likely,' Mr McWilliams said.
I have to agree with Graham and Cumbria. Having been made redundant as part of cost reductions, I still keep up with ex colleagues (mostly middle mgt) and most are experiencing pay freezes or cuts. Certainly no chance of regular increments and cost of living rises if they come at all are half the rate of inflation. Who IS getting this increases? Surely the high up are too savvy to take rises when no one else gets one - aren't they?Alison, former Council employee, Added: Friday, 9 September 2011 07:27 PM
I would love to get a salary increase, I can't remember my last one! Who is getting these increases, not most hard working LG employees! What is happening in the private sector? Are camclegg and pickledosbornes promises of the private sector gaining, from their strangulation of the public sector, not working out? Where is all the private sector growth they promised? Like all their promises it is a load of bulls*** going down the drain. Oh well, the recession will continue, as expected!Graham, Added: Friday, 9 September 2011 03:19 PM
Could someone please tell me how this is possible? I like countless others have seen my pay frozen for the 2nd year running. If, as I suspect, it is for higher paid Directors and Chief Executives could LocalGov please qualify this statement definitively rather than the nebulous a key reason could be..., Cumbria, Added: Friday, 9 September 2011 02:07 PM
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