Benchmarking regional pay: London allowances frozen
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The majority of employers have frozen their London allowance over the past year, according to 2010 benchmarking research on regional pay from IRS for HR & Compliance Centre. This suggests that London allowances could have fallen prey to the general recession-linked slowdown in pay highlighted by analysis of whole-economy pay trends from the IRS pay databank. |
The 2010 IRS/HR & Compliance Centre Benchmarking survey of regional pay is based on responses from 61 employers with a combined workforce of 422,000 employees.
Subscribers to HR & Compliance Centre Benchmarking can drill down into the complete benchmarking data from the 2010 survey of regional pay practices.
Click on the links to access full benchmarking data on each of the following key findings:
- Half of UK employers pay a specific London allowance, while a further two-fifths have higher basic rates or salary scales for employees working in capital. Access benchmarking data.
- More than half of employers set London pay rates between 1% and 10% higher than national scales, while at two-fifths the differential is between 11% and 20%. Access benchmarking data.
- Three-quarters of employers extend London allowances to all employees in the capital. Access benchmarking data.
- The median inner London location payment is worth £3,268 per year, with the average set at £3,245. Access benchmarking data.
- The median outer London location payment is £1,747 per year, compared with £1,877 at the average. Access benchmarking data.
- More than four-fifths of those surveyed have not increased London allowances in the last 12 months. Access benchmarking data.
- Just over half say London allowances are pensionable. Access benchmarking data.
- More than two-fifths of employers (42%) operate regional pay arrangements for employees working outside the London area. Half of these (21% of all respondents) pay a regional location allowance. A further 13% have regional pay bands or zones in place. Access benchmarking data.
I hope these links will help you get the most out of the benchmarking data from this survey. Please get in touch if you have any queries about the HR & Compliance Centre Benchmarking service.
Michael Carty, Benchmarking Editor
