More than half of employers anticipate awarding a pay rise worth 5% or more in 2023, according to IDR’s poll of 181 mostly medium and large-sized private sector employers. Just over half - some 53% - said they intend to award increases of at least 5%, with a quarter intending to make awards at a level just below this, between 4% and 4.99%. The results of our poll reveal insights on employers’ pay intentions for 2023 and indicate that continued upward pressure on pay is likely to deliver higher pay rises next year when compared to 2022. Almost three-quarters (72%) of the sample anticipate that the level of pay rise will be higher next year when compared to 2022. Meanwhile, 15% said that the level of pay rise in 2023 is likely to be the same as the level of increase awarded in 2022 and just 13% of employers in the sample expect that pay awards in 2023 will be lower when compared to this year’s outcome.
