Mid-year 'cost of living' payment

This is a great post and we are also thinking one off payment plus 1 or 2% (we gave 2.8% and more in April's merit increase) and then a further merit increase again in April 23. I am finding a lot of conflicting information for example some fellow colleagues giving on or around CPI, yet median anticipated pay increases in the private sector are around 4% (CIPD and Chemical Industry benchmark).

If you just look at those firms that plan to increase pay in the next 12 months and exclude those that plan to freeze or cut it, then the median CIPD pay forecast in the private sector jumps from 4% to 5%, while the mean forecast goes from 4.24% to 5.53%. Half of all private sector pay forecasts are for a rise of 4% or more, this proportion is even higher in such sectors as business services.

If you just look at those firms that plan to increase pay in the next 12 months and exclude those that plan to freeze or cut it, then the median CIPD pay forecast in the private sector jumps from 4% to 5%, while the mean forecast goes from 4.24% to 5.53%. Half of all private sector pay forecasts are for a rise of 4% or more, this proportion is even higher in such sectors as business services.

That's a better way to look at it, thanks Charles

It is surprising to read that there are organisation planning to cut salaries in the next 12 months. Inflation is not only hitting individuals particuarly hard then, organisations are struggling as well which is bad news to the economy. Luckily unemployment is still at hisotric low-level so far.

Back in June, few employers thought they would need to cut or freeze pay. Last time we had a recession, many organisations were able to freeze or cut pay temporarily because inflation was negative. Inflation isn't negative at the moment.