The gap between public sector and private sector pay is set to increase further over the next year, a new study predicts.
It is thought that private sector pay will increase by three to 4.5 per cent next year, the survey by Income Data Services (IDS) reveals, while public sector pay will only see a rise of around two to 2.5 per cent.
Reported in Reuters, the company commented that the increasing pay gaps could disgruntle public sector workers.
"For a second year running there will be a wide divergence between private and public sector pay increases and this will continue to test industrial relations across the public services," the firm stated.
ClickAJob chief executive Yngve Traberg commented: "Pay gaps are only an issue if employees stay with their current jobs.
"Job satisfaction, relationships with colleagues and work environment are increasingly reasons to move, especially if a career is not advancing upwards."
He continues: "Since money is not the only incentive to persuade people to stay, public sector organisations should think wider if budgets prevent pay packets from being competitive."
According to the IDS, retail inflation will also fall to around four per cent until the end of the year and continue until it hits three per cent by spring.
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