Pay rises at slowest rate on record

Salary data survey shows increases well below CPI inflation

Private sector earnings rose at an annualised rate of just 0.5 per cent over the last three months, according to a survey by the Vocalink FTSE 350 index.

The rate, the slowest rise on record, is substantially lower than the 4 per cent rate of consumer prices index (CPI) inflation.

Employees in the manufacturing sector suffering a 0.6 per cent decrease in the wage over the same period, whilst public sector workers saw a 1.3 per cent increase in pay.

Payment services company Vocalink and the Centre for Economic and Business Research researched salary data of more than 200 of the FTSE 350 companies and 600 government organisations for the survey.