UK workers predicted to see salary growth for the first time since pandemic

New data shows that UK employees can expect to see real growth in their salaries for the first time since the pandemic.

Respondents from over 40 countries and over 20 industries were surveyed between the 1^st of August and the 13^th of September 2024 – they were asked to submit data per country about their pay review budget for this year and their forecast pay review for 2025.

The results from 3R Strategy’s Global Salary Planning Report 2024-2025 revealed that the gap between inflation and pay increases has narrowed with 2024 data indicating a median pay budget of 4% and the latest inflation figures at 1.7% (ONS)

Based on the data for next year, higher-than-inflation wages may be set for 2025 with budgets predicted to be 3.5% while inflation is forecast at 2% – 2.5%.

Founder and managing director of 3R Strategy Rameez Kaleem, said, “Conducting our Global Salary Planning Survey for the fourth year in a row, we were delighted with the level of participation, with responses collected across over 40 countries and more than 20 different sectors.

“We were especially pleased to note that UK employees are expected to see real growth in their salaries for the first time since the pandemic, contrasting with last year’s findings. As UK inflation has declined significantly over the past year and interest rates have begun to ease, this is an encouraging sign for all employees struggling with the high cost of living. We hope our report will serve as a valuable resource for 2025 salary planning to help businesses attract and retain talent.”

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