Pay rises for staff in the UK voluntary (not-for-profit) sector have kept in line with inflation this year and are now on a par with those in the private sector. This is in sharp contrast to last year, when voluntary sector settlements lagged behind those in the rest of the economy.
According to research published by IRS Employment Review, staff at 26 charities and 37 housing association – some 67,000 in total - received median pay rises of three per cent in the year ending August 31
IRS Pay and Benefits Bulletin Editor, David Carr said that higher inflation this year had pushed settlements upwards.
"This year’s awards reflect changes in the sector, as it becomes more responsive to market drivers. We have seen developments in the way that not-for-profit organisations reward their staff, through individual performance related pay, regional differences and market supplements."
But he added: "While pay increases have caught up with private sector, it must be remembered that, overall, voluntary sector staff generally earn less. This pay differential widens with seniority and may be an area that trustees will visit in the future."