Recent analysis indicates that wages for staff at SMEs (small and medium-sized enterprises) diminished towards the end of March, as these businesses struggled with the ramifications of Chancellor Rachel Reeves' national insurance tax increases.
The Office for National Statistics recently released data showing wage growth across the 海角视频 economy has been over five per cent every month since September of the previous year as reported by .
However, specifically, workers at smaller companies are feeling the effects of the government's £25 billion taxation measures. This is highlighted by figures from the HR platform Employment Hero, which were provided exclusively to City AM, revealing a decline in median full-time pay across 105,000 SMEs.
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According to Employment Hero's research, employees were earning up to £250 less annually by the end of March compared to the end of December.
The most significant reductions in median full-time salaries were observed in the manufacturing sector, as well as in transport and logistics, experiencing an average pay decrease of approximately 2.6 per cent each month.
Employment Hero's Managing Director Kevin Fitzgerald expressed concern over the wage reductions amidst tax rises and impending US tariffs, stating they are "particularly alarming."
He commented on the situation, noting, "These businesses are clearly making difficult decisions to maintain competitiveness in an increasingly challenging trade environment," and added, "What's most concerning is that workers are facing this wage stagnation at a time when living costs remain high."
The Office for National Statistics (ONS) recently published wage data that exceeded expectations, largely driven by the public sector following a series of agreements between the government and union leaders to raise wages for professionals such as teachers and train drivers.
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In contrast, workers at companies employing fewer than 500 staff earn less than £40,000 on average, as reported by Employment Hero.
Following last year's Autumn Budget by Reeves, James Smith, a researcher at the Resolution Foundation, cautioned that employees should anticipate lower wages due to tax increases.
Bank of England reports suggest that national pay rises could decrease to four per cent.