• Annual rate of growth in take home pay eased to 3.7 per cent, according to Voca
• Acceleration between the fourth quarter of 2006 and first quarter of 2007

3 April 2007: The Voca take home pay index  shows that growth in take home pay eased to 3.7 per cent in March compared to 4.2 per cent in February.

The Voca services sub-index, which reflects take home pay growth in the service sector, continues to be strong, despite the rate in the services sub-index falling from 4.9 per cent in February to 4.3 per cent in March.  The manufacturing sector sub-index declined from 3.1 per cent in February to 2.7 per cent in March.

Richard Cooper, head of marketing and communications at Voca, said:
 “While the March figures eased slightly, take home pay index growth remains relatively strong and figures show a noticeable increase between the fourth quarter of 2006 and the first quarter of 2007.”

Douglas McWilliams, chief executive of cebr, the economics consultancy which analyses the index for Voca, said:
 “Despite the easing of the Voca take home pay index this month, the acid test for assessing the impact of the January to April wage round will be next month’s results, with many negotiated pay settlements implemented in the new financial year. If figures for next month’s take home pay index are strong then this could point to high wage inflation that may persist over the following year.”

Voca processes over 90 per cent of UK salaries and the Voca take home pay index is the most timely and accurate disposable income data available in the UK.  It is based on actual payments made to employees on a three-month moving average compared with the same measure a year earlier.  It is affected by changes in tax rates, National Insurance and other employer payments or deductions.

To read the full take home pay index report, please click here.