Take home pay

For the first time since September 2009, growth in the annual rate of take home pay in the private sector stands higher than the annual rate of inflation, according to pay processors VocaLink.

The VocaLink FTSE 350 Take Home Pay Index rose to 3.1% in the three months to July. This is up from 2.7% during the three months to June and represents the highest growth the Index has seen in the last 12 months.

The manufacturing index fell to 3.1% for the three months to July, down from June's figure of 4.5%.

The services index experienced its fourth consecutive increase in annual take home pay growth, standing at 3.1% for the three months to July.

David Yates, chief executive officer at VocaLink, commenting on the latest findings, said: “The fact that take home pay growth in the private sector is now above the annual rate of inflation for the first time in nearly three years is positive news."

www.vocalink.com/takehomepay

www.vocalink.com/media/432098/take_home_pay_index_aug2012.pdf