For employees in the country’s embattled public sector, the news is worse, with salary increases set to fall to 3 per cent, from 5 per cent in 2023, the country’s professional body for human resources says in its quarterly Labour Market Outlook report.
“This quarter, we see the tide turning on pay,” the CIPD says. “As inflation continues its descent in 2024, expected pay awards will likely follow suit.”
Inflation in the UK peaked at a record 11.1 per cent in October 2022, leading to a cost-of-living crisis and steep drop in the value of employees’ salaries as they struggled to cover daily living expenses.
However, the UK slipped into recession in the second half of 2023 after the economy shrank 0.3 per cent in the three months to December, the Office for National Statistics said earlier this month.
While inflation has eased – in January, the UK’s inflation rate remained steady at 4 per cent and food prices fell for the first time since September 2021 – salary increases are expected to track the cost-of-living index amid a competitive labour market.
“Decreasing staff levels appears to be higher on the agenda in 2024, in response to the higher wage costs experienced over the past couple of years,” the CIPD says.
“This is evident in both the public and private sector, combined with a turn away from continuing to absorb costs or, in the case of the private sector, reduced profits during the period of high inflation.”
What is the salary and employment outlook for jobseekers in the UK in 2024? Read on to find out and look at our detailed salary guides below for a snapshot of your industry.
Will salaries increase in 2024?
Salary rises in the UK this year will be lower compared with 2023, falling in line with easing inflation at an average of 4 per cent.
That doesn’t mean to say that employees will be unable to negotiate higher increases above the average estimate, but it will depend on the sector, a company’s bottom line, performance reviews and whether or not their role is in demand.
However, the economic landscape is creating a challenging hiring outlook for candidates and employers, says Doug Rode, managing director of the UK and Ireland at Michael Page.
“This trajectory that hiring will continue to tie in with the economic outlook is something we expect to see throughout 2024 – especially when it comes to salary,” Mr Rode says in the Michael Page 2024 UK Salary Guide.
“Candidates are nervous to move due to uncertainty around job security and clients are becoming increasingly selective about hiring decisions and packages as they look to fulfil their business needs.”
Average salary increases in small to medium enterprises (SMEs) will remain higher at 5 per cent compared with private sector organisations, the CIPD adds.
“This, combined with the finding that fewer SMEs are hiring, indicates that SMEs appear to be focusing on retention of existing staff as we enter 2024,” it says.
“Many people will also benefit from incremental progression or promotions, bonuses or a pay bump when switching jobs.”
The CIPD data is based on a poll of more than 2,000 HR professionals and decision makers in the UK and shows that 24 per cent of organisations in the country plan to increase their employees' base pay by between 4 per cent and 4.99 per cent.
One in five companies (19 per cent) will increase salaries by 2 per cent to 2.99 per cent, while 12 per cent are planning a pay freeze, it adds.
“However, a larger proportion [17 per cent] are still planning pay rises of above 6 per cent in 2024," it says.
Meanwhile, jobseekers’ salary package expectations are evolving and they are seeking a better work-life balance and to develop new skills, Mr Rode says.
“As a result, businesses must look beyond the numbers and ensure they’re offering a holistic package to ensure talent – existing and new – feel safe, secure and, most of all, motivated,” he adds.
What benefits can UK jobseekers expect in 2024?
Attractive employee benefits can give companies a competitive advantage when it comes to recruitment, as well as boosting staff retention, morale and productivity, UK job search engine Adzuna says.
Up to two thirds of employees believe the benefits offered to them are equal to or more important than their basic salary, Adzuna said in a blog post in December.
“Indeed, demand from employees for benefits may also be on the rise, with 83 per cent of businesses having experienced an increase in requests from employees for enhanced well-being benefits,” it said.
However, three in 10 professionals say they do not receive any workplace benefits at all, according to a study conducted by recruitment specialist Reed as part of its 2024 UK salary guide, which surveyed 5,000 employees last November.
The three most common benefits received by employees in the UK are: flexitime (20 per cent), a company pension higher than the required amount (18 per cent), and an annual salary increment (18 per cent), the Reed survey found.
However, 45 per cent of workers say they would prefer an annual salary increase, 36 per cent want to be offered a four-day working week and 36 per cent want flexitime, it shows.
“In 2021, we saw higher demand for health-related benefits, which reflected the stress the pandemic had on workers,” Reed says in its report.
“Last year, workers were feeling the initial impact of rising energy bills and inflation, which was reflected in their desire for more financial-led benefits, such as salary increments and pensions. This year, however, there’s a greater balance between money and flexibility.”
Other benefits on employees' wish lists include private health care, a cycle to work initiative, life insurance, uncapped annual leave and a gym and wellness programme, Reed says.
Will employees receive a bonus in 2024?
The positive effect that year-end bonuses have on employees is well-known. Not only do they boost morale for a job well done, they are also a welcome financial boost for workers, particularly during challenging economic times.
In the UK, 41 per cent of employees do not expect to receive a bonus for their hard work in 2023, according to the Robert Walters 2024 salary guide, which surveyed 4,000 professionals and 2,000 employers for its annual report.
A year-end bonus remains a crucial retention tool, influencing almost four in five employees' career plans
Chris Eldridge, chief executive of Robert Walters UK
More than half of professionals, or 68 per cent, polled for the survey say they would “seriously contemplate” leaving their current job if they missed out on a bonus, it adds.
However, 59 per cent of professionals are expecting a bonus of between 10 per cent and 30 per cent of their salary.
“A year-end bonus remains a crucial retention tool, influencing almost four in five employees' career plans,” Chris Eldridge, chief executive of Robert Walters UK, says in the report.
“It also helps with motivation for the following year – when people feel appreciated, they are more committed to continuing the hard work to reap the benefits in the years to come.”
Meanwhile, a third of employers polled for the survey say they have not budgeted for end-of-year bonuses, but 52 per cent have, according to Robert Walters.
UK salary guide 2024
Check out our detailed salary guides below for a snapshot of how much you can expect to be paid in your sector in 2024.
Finance and accounting
IT and technology
Admin, HR and office support
Legal
Financial services
Marketing and creative
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates
Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
Favourite Movie: Mona Lisa Smile
Favourite Author: Kahlil Gibran
Favourite Artist: Meryl Streep
Porsche Taycan Turbo specs
Engine: Two permanent-magnet synchronous AC motors
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
Cryopreservation: A timeline
Keyhole surgery under general anaesthetic
Ovarian tissue surgically removed
Tissue processed in a high-tech facility
Tissue re-implanted at a time of the patient’s choosing
Full hormone production regained within 4-6 months
UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.
Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.
Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.
For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.
Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.
At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.
Six large-scale objects on show
Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
A stagecloth for The Ballet Russes that is 10m high – the largest Picasso in the world
Frank Lloyd Wright’s 1930s Kaufmann Office
A full-scale Frankfurt Kitchen designed by Margarete Schütte-Lihotzky, which transformed kitchen design in the 20th century
Torrijos Palace dome
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
