Take-home pay fillip for service sector

Private sector pay had its biggest increase for 11 months in the three months to August — while the public pay squeeze seems set to continue — according to the latest data from the salary processor VocaLink.

Take-home pay growth accelerated in the three months to the end of August, as annual pay growth of the VocaLink FTSE 350 Take-Home Pay Index rose to 2.4% — the biggest increase in take-home pay since July 2012.

Rising take-home pay was mostly driven by the service sector, with pay growth in the service sector take-home pay index rising to 2.6% in the three months to August, up from 2.1% in the three months to July.

Pay growth in the manufacturing sector slowed. Annual growth in the manufacturing sector index fell to a seven-month low of 1.0% in the three months to August.

For workers in the public sector the pay squeeze continues. The public sector take-home pay index fell at an annual rate of -0.1% for the third consecutive reading in the three months to August.

www.vocalink.com/about-vocalink/news/press-releases-2013/private-sector-pay-bounces-back-biggest-jump-in-monthly-pay-for-13-months.aspx