HCM & HRIS

UK employers plan 3% pay rises for 2026, Brightmine says

December 17, 2025
www.ETHRWorld.com
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  • Published On Dec 17, 2025 at 09:43 PM IST

< />LONDON, British employers plan to offer staff pay settlements averaging 3% next year, in line with the most recent agreements, after a temporary increase in the three months to October due to higher public sector pay deals, an industry survey showed.<br /><br /><!– PROMOSLOT_M –> Human resources data company Brightmine said the median basic pay award in the three months to the end of November was 3%, down from 3.3% in the three months to October.<br /><br /><div class=” article-detail-ad-slot=”” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/126041841.cms” height=”442″ loading=”eager” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” width=”590″></img></p> </div> <p> Three percent was also the most common expectation for pay settlements that would be reached next year.</p> <p> “Unless economic conditions improve meaningfully, most organisations are preparing for another year of tight pay budgets. Early indications suggest that 2026 pay awards could potentially edge lower than 2025’s 3% threshold as cost pressures continue to weigh on employers,” Brightmine senior content manager Sheila Attwood said.</p> <p> * Latest Brightmine survey based on 18 pay awards covering 118,000 employees between September 1 and November 31</p> <p> * 65% of the latest pay settlements were lower than their equivalent in 2024</p> <p> * Office for National Statistics data for the three months to October showed the weakest private-sector average weekly earnings growth excluding bonuses since December 2020 at 3.9% versus as record 7.6% rise for the public sector</p> <p> * Pay settlements data is often lower than ONS wage growth data which include impact of job changes, promotions and shifts in employment between sectors</p> <p> * Bank of England policymakers mostly view pay growth around 3% as consistent with getting inflation back to 2% target (Reporting by David Milliken, editing by Andy Bruce)</p> <div> <div> <ul> <li><a href=Reuters

  • Published On Dec 17, 2025 at 09:43 PM IST

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