2026 Pay Rise Forecast: Most UK Workers to See Similar Increases
New data has been released detailing the most likely pay rises for employees across the United Kingdom in 2026, providing a clear insight into bosses' intentions across a range of pay rise brackets. The findings indicate a cautious yet stable approach to wage adjustments in the coming year.
Survey Reveals Employer Pay Rise Plans
The figures come from a comprehensive survey of 121 firms, which collectively employ an impressive 2.8 million people. This research was carried out by the respected organisation Incomes Data Research (IDR), offering a robust snapshot of the UK labour market.
According to the data, staff are most likely to see their pay rise by the same amount as they received last year. Specifically, some 44% of bosses intend to award a similar wage increase to their employees, reflecting a trend of consistency in compensation strategies.
Breakdown of Pay Rise Intentions
The survey results show a varied landscape of employer intentions:
- 44% of employers plan to give pay rises similar to last year's levels.
- 28% of bosses will compensate employees more generously, indicating a positive shift for a significant minority of workers.
- Another 28% say their workers face a smaller pay rise than last year, highlighting ongoing economic pressures.
Furthermore, the findings indicate that more than three-fifths of pay awards are likely to be worth between 3% and 3.99%. This suggests a moderate but meaningful increase for the majority of employees affected.
Inflation's Role in Pay Decisions
Zoe Woolacott from Incomes Data Research commented on the influence of economic factors, stating: "Inflation is currently higher than it was a year ago and this has applied upward pressure on pay to some extent. The findings from our poll show that inflation continues to figure relatively highly in employers' concerns."
This statement underscores how rising costs are shaping wage decisions across the UK, with employers balancing competitive salaries against broader economic challenges.
The data provides valuable foresight for workers and businesses alike, as they navigate the evolving landscape of employment and compensation in 2026.
