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About the Voca take home pay index

The Voca take home pay index tracks monthly take-home pay levels in the UK. It is compiled from the

salary payments of a sample of FTSE 350 companies, using data captured by Voca which process all

automated payments in the UK including BACS Direct Credits and Direct Debits. Voca works with the

centre for economics and business research (cebr) to deliver economists, analysts and the media with a

powerful and timely indicator of pay inflation, which is an important aspect of the UK’s economic

performance and one of the components that drives the Monetary Policy Committee’s interest rate policy.

Methodological Notes

The average payment per employee is estimated from the total value of payments and the number of

transactions and then expressed as an index for each month. The data uses a 3-month moving average to

mitigate seasonal variations and looks at the year on year increase to provide a fair economic indicator

that is also comparable with other data.

While the FTSE 350 sample is largely representative of the corporate economy in the UK, when

comparing the Voca index data with, for example, government statistics, it is important to take into

account the fact that some trends, which affect relatively larger firms differently, may have a

disproportionate impact on the Voca take home pay index compared with the government’s official

Average Earnings Index (AEI). For example, the Voca index does not include the public sector so when

pay trends in the public sector are different from those in the private sector, this will affect the Voca index

differently from the AEI.

The Voca take home pay index is based on take home pay data. It is therefore affected by changes in tax

rates, changes in national insurance contribution rates and changes in other employer payments or

deductions. The index data series began in September 2004.

Edited by gruffydd
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The findings from Voca show the growth in take home pay fell further to an annual 3.0 pct in May from 3.6 pct in April. This is the lowest rate of growth since December 2006 and indicates that wage inflation remains subdued

With houses prices now rising at 0.3% a month thats works out quite well provided long as IR don't rise, whoooops, there goes there neighbourhood.

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Lets face it high wage inflation only happens for those on huge pay packets and has no reflection on working peoples incomes. You talk to anyone who has to work for a living and they all say that there pay packets are falling in relation to house hold expenses. We're basically nearly all broke by the time we've paid the bills

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