Private sector wage inflation is being led by big gains in remuneration at senior management level, according to figures published by Incomes Data Service, which measures salary agreements on a monthly basis.
Average private sector salary increases hit 3.5% in the quarter to April – up 0.4% against the previous quarter ended in January.
Board salaries meanwhile increased 4.1% in the three months to April, against 3.3% for junior and middle mangers and professional and technical staff.
However, the real gains have come from bonuses, which at the board level are now running at the equivalent of 57.6% of annual salary.
That represents an increase of 18 percentage points on the average level of bonuses this time last year.
Bonuses for junior and middle managers are up 4.8%, IDS adds.
Coming just two days ahead of a possible interest rate hike by the Bank of England, IDS’ survey of salaries will make uncomfortable reading, as it suggests the private sector is once again awarding average increases well ahead of the official rate of price inflation.IFAonline
Clarke replacing Balkham
'Deep-dive analysis of client behaviour'
Ways to mitigate April’s increases
The best equity income funds examined