Startups.co.uk Report of the 2025 labor revealed that More than half of the British bosses will give lower salary increases to the average this year.
British companies are not below the average salary offer this year
5.9% was the Average wages of the United Kingdom employees received from Nov 2024 – January 2025, According to ONS data. However, Startups.co.ukThe conclusions show an amazing 63% of companies plan to increase wages by only 5% or less This year.
This means a significant proportion of British workers could lose even a average salary increase.
An equally worrying overview of the report stresses that 12% of owners of British companies do not plan to increase the salary of employees in 2025.
What could feed the salary increases lower than the average?
Certain financial factors could lead to employers distributing salary increases below average.
The recent increase in national national insurance contributions (NICS), combined with the new national minimum wage and national salary, can dissuade companies from spending more money on employee salary increases.
British industries planning salary increases below average (5% or less) this year:
- Construction – Most likely (65%) to increase salary by 5%
- Manufacturing – Most likely (40%) to increase salary by 5%
- Technology – Most likely (37%) to increase salary by 5%
- Health care – Most likely (36%) to increase the salary by 5%
- Electronic / Retail Trade – Most likely (30%) to increase salary by 5%
- Consultant – Most likely (30%) to increase salary by 3%
- Creative arts – Most likely (30%) not to offer any salary increase
- Finance – Most likely (27%) to increase salary by 3%
Young startups less likely to offer salary increases
The Startups.co.uk report also reveals that new businesses may have the most difficulties with the increase in the cost of employment. Young startups are the least likely group to offer a salary increaseDespite a lot of understanding of the talents on a scale.
Actually, 26% of British startups of less than a year Do not plan to offer salary increases this year – the largest of all age groups questioned.
When this same question was asked to companies that have succeeded in their first year of operation, this figure Half at 13%showing The older a business, the more likely they are to offer salary increases.
Editor -in -chief of startups.co.uk, Zohra Huda, Comments:
“While the national insurance increase of 15% entering into force this month, it is not surprising that business leaders hold these ropes by hand while they are trying to navigate between attracting and retaining talents and cost reduction measures.
Our report on the workplace indicates that although increases in salary below average are planned for 88% of small businesses, benefits are a successful strategy to soften lowball. Free breakfasts in four -day work weeks, wage strategies must be creative. »»
