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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Service Manager for the Multi Agency Child Protection Team

Nottingham City Council
£58,602 - £62,109
You will play a pivotal role in leading and shaping child protection practice across Nottingham Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Head of Regulated Services

Nottingham City Council
£75,323 - £84,396
You will provide strategic leadership for our Residential Children’s Homes, our Fostering Services, and our, Permanence service Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Head of Children's & Education Services Transformation

Nottingham City Council
£75,323 - £84,396
You will play a critical leadership role in driving Nottingham's ambition to deliver outstanding services for children, young people and families. Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Assistant Head of Legal Services (Regeneration & Property)

Royal Borough of Greenwich
PO9 - £71,181 - £74,802
The role will involve legal advice and support to committees, members and senior officers, and taking any appropriate measures London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner