Salary increases in the UK fell to three per cent from the upwardly revised target of 3.1 per cent in the quarter ending May 2007, a sign that faster inflation is yet to result in higher pay deals, according to a survey by Industrial Relations Services (IRS).
The data, which is based on 260 pay awards and covers the pay deals of almost one million workers, showed that median pay deals in the manufacturing and services sectors had held at three per cent in the 3-month period.
Public sector pay deals stayed at the nine-year low of 2.7 per cent in the year to May.
The survey stated that over 80 per cent of the deals in the survey took effect from April, which is considered to be the busiest month for wage bargaining.
IRS pay and benefits bulletin editor Sarah Welfare said: "April is shaping up to look relatively restrained - particularly in the public sector, where pay awards remain at their lowest for nine years.''
The figures are likely to reassure Bank of England policymakers that workers have not won bigger pay increases to compensate for higher rates of inflation.
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