Dominic Browne 08 September 2011

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.

SIGN UP
For your free daily news bulletin
Highways jobs

School Crossing Patrol

North Yorkshire Council
£12.85- £13.47 per hour
Do you have some spare time in the morning and/or afternoon? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Peripatetic Customer Service Advisor

Oxfordshire County Council
£25583 - £26403
About Us Oxfordshire has a wonderful balance between beautiful Cotswold countryside and quaint villages and towns against the urban dynamic of the world-renowned university City of Oxford and surrounding market towns. It is a thriving county with one of t Bicester Library
Recuriter: Oxfordshire County Council

School Crossing Patrol

North Yorkshire Council
£12.85- £13.47 per hour
Do you have some spare time in the morning and/or afternoon? Knaresborough, North Yorkshire
Recuriter: North Yorkshire Council

School Crossing Patrol

North Yorkshire Council
£12.85- £13.47 per hour
Do you have half an hour to spare in the morning or afternoon? Pickering, North Yorkshire
Recuriter: North Yorkshire Council

School Crossing Patrol

North Yorkshire Council
£12.85- £13.47 per hour
Do you have half an hour to spare in the morning or afternoon? Stokesley, Middlesbrough
Recuriter: North Yorkshire Council
Linkedin Banner