Pay reviews in 2025
Happy new year.? We hope you all had a restful and joyful break.
As we head into the new year many of you will be thinking about budgeting for upcoming pay review rounds, so we’ve shared some recent 2025 pay budget predictions below. ?
The overall trend appears to be lower than 2024.? In fact, IDR has reported 80% of employers are anticipating lower pay increase budgets in 2025, with 43% suggesting 3% - 3.99%. ??
Most of the data above will have been collected before the October Budget which provided for a 1.2% increase in employer NI and reduced the NI threshold to ￡5,000, and a National Living Wage increase of 6.7% to ￡12.21 from April 2025. ?In addition, the Real (voluntary) Living Wage increases to ￡12.60.
So, it remains to be seen if pay budgets will be squeezed further.
For more background on the National and Real Living wage, here's a recent blog: What’s happening with the Living Wage? | Verditer Consulting.
For help with developing a pay and reward strategy, or putting pay foundations in place such as career levels, pay benchmarking and pay structures, please do get in touch.
Pay and Reward Expert at Pay Data | Helping HR and Senior Management teams manage their pay and reward practices
1 个月Really interesting article - Many of these figures are in line with what we have seen. We are currently concluding our January Pulse Survey on Pay Budgets (https://www.surveymonkey.com/r/2025_PA_Pulse) and next week (Wed 29th) we are running a Round Table discussion to support people's discussions (register here - https://us02web.zoom.us/meeting/register/IeS5YCYRSbKQbHvufxH5CA).