What's happening with manufacturing pay?

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This month, EEF’s pay settlements data points to a fairly stable picture on pay when compared with the previous month. However, average settlements in 2015 have generally trended below what we saw in 2014 and 2013, and July’s data proves no exception.


Average pay deals unchanged between June and July

  • The three-month average pay settlement at 1.9% in July, unchanged from the revised figure for June.
  • This is somewhat lower than the level of pay settlements reported in the same period last year (when the three month-average settlement was 2.7%) and is in line with our view that manufacturing pay settlements will average around 2% in 2015.

Fairly stable underlying picture as well

  • The highest proportion of pay deals agreed fell in the 1.76 – 2.00% band in July, the same as the month before.
  • The proportion of pay settlements at the very top eased back a little. Settlements coming in at above 3.5% only accounted for 2% of settlements this time, compared with 4% last month, although it should be noted that this is based on quite a small number of settlements.
  • After ticking up a little earlier in the year, the share of pay freezes remained stable at 16%. The recent uptick may – in part – be explained by more companies moving towards different payment structures, and is something we will revisit.


This person has now left EEF. Please contact us on 0808 168 1874 or email us at enquiries@eef.org.uk if you have any questions.

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