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More UK employers freeze pay in COVID fallout, XpertHR says

FILE PHOTO: People are seen walking on a street in Manchester, following the outbreak of the coronavirus disease (COVID-19), Manchester, Britain, May 4, 2020. REUTERS/Phil Noble/File Photo

LONDON (Reuters) - More British employers are freezing staff pay or postponing annual wage settlements as they deal with the economic fallout from the coronavirus lockdown, a survey showed on Tuesday.

Human resources data provider XpertHR said 16% of pay deals in the three months to the end of June offered no increase in wages - up from 15% in the three months to May and around double the proportion in the three months to April.

“Many organisations are deferring a decision on their April pay award until later in the year, but indications are that many of these will come back and implement a pay freeze,” XpertHR pay and benefits editor Sheila Attwood said.

In the three months to the end of June, XpertHR recorded a 2.2% median basic pay award across the economy, unchanged from the previous period, based on a sample of 256 basic pay awards.

Reporting by Andy Bruce

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