24 March 2015
Take Home Pay Index Economic Report - March 2015
Annual growth in the VocaLink FTSE 350 Take Home Pay Index slowed to 1.8% in the three months to the end of February – down from 2.0% in the three months to January.
Take home pay growth in the manufacturing sector slid from 1.5% to 0.3% year-on-year in the three months to February.
The annual rate of growth in the VocaLink Service Sector Take Home Pay Index once again fell slightly to 2.0% in the three months to February from 2.1% year-on-year in the three months to January.
Workers in the Public sector were the only group to see take home pay growth accelerate marginally in February, from 0.9% year-on-year in the three months to the end of January to 1.0% in the three months to the end of February.
To find out more about the VocaLink Take Home Pay Index or to download the report, click here.
About the VocaLink Take Home Pay Index
The VocaLink Take Home Pay Index tracks monthly take home pay levels in the UK. It is compiled using data captured by VocaLink from the salary payments of over two hundred FTSE 350 companies and over six hundred public sector organisations. VocaLink is the processor for automated payments in the UK including all Direct Debit and Bacs Direct Credits, which account for over 90 per cent of salary payments delivered into employees’ bank accounts.
VocaLink works with the Centre for Economics and Business Research (Cebr) to deliver these powerful and timely indicators of take home pay inflation to economists, analysts and the media. They are an important indicator of the UK’s economic performance. The VocaLink Take Home Pay Indices are split by broad sector group – the VocaLink Manufacturing Index, the VocaLink Services Index, the VocaLink Public Sector Index and the VocaLink FTSE 350 Index.
There are two unique aspects to the VocaLink Take Home Pay Index. First, it is based upon hard data, not survey responses – measuring the salaries deposited in hundreds of thousands of bank accounts each month. Second, the data is collected in real time – with the results processed and reported within days of the end of each month. Data from the VocaLink Take Home Pay index is now included in the Bank of England’s quarterly Inflation Report.