20th November 2014
Workers for FTSE 350 companies have seen their real wages rise, albeit by just £4.81 a month, compared with the same period a year ago claims the latest VocaLink Take Home Pay Index.
The finding contrasts with an annual rise of just £0.08 in the previous index and represents an inflation-adjusted salary increase of 0.3%.
During the most recent three-month period, real monthly wages grew in the manufacturing industry by £1.98 per month, a 0.1% increase in real terms, compared to 2013.
The index also found that workers in the services sector have seen their wages rise by 0.4% in the past 12 months, adding an average of £6.22 to monthly pay packets.
Meanwhile, according to the latest report – from the company that processes the salary payments for more than 90% of the British workforce – real pay is still falling on a year-on-year basis, down 0.7% or £10.98 per month, in the public sector.
David Yates, chief executive officer at VocaLink, said: “The year-on-year growth we have seen for FTSE 350 workers reflects the fact pay growth picked up in October while inflation has remained low. Although the latest Take Home Pay Index may be good news for many workers, some economists believe that prices will fall back again in the remainder of this year and into 2015. This suggests that we could see take home pay growth slow in the coming months.”