March pay deals steady at 3.5 pct

Fri Apr 25, 2008 12:05am BST

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LONDON (Reuters) - Wage growth held steady at 3.5 percent in the three months to March, a survey showed on Friday, but there are signs pay inflation is about to ease.

Provisional estimates by income specialists IRS, based on 70 wage deals, show the median pay award for April is running at 3 percent.

"Our sample of April pay awards clearly shows that pay awards are receding at a faster rate than headline inflation," said Sheila Attwood, IRS Pay and Benefits editor.

"More pay awards are worth less than a year ago, and (Prime Minister) Gordon Brown seems to be succeeding in keeping a lid on public sector awards."

(Reporting by Matt Falloon; Editing by Ron Askew)

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