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Total reward: pay and pension contributions in the private and public sectors

Author

Listed:
  • Sarah Levy

    (Office for National Statistics)

  • Hazel Mitchell

    (Office for National Statistics)

  • Guled Guled

    (Office for National Statistics)

  • Jessica Coleman

    (Office for National Statistics)

Abstract

SUMMARYThis article compares total reward, which is the sum of gross pay and employers' pension contributions, for the public and private sectors.Total reward for full-time employees is higher in the public sector than the private sector, predominately due to the larger proportion of employees who do not belong to employer pension schemes (with zero pension contributions) in the private sector. A comparison of total reward on a like-for-like basis, comparing full-time employees with pensions in both sectors, shows that total reward is higher in the private sector than the public sector. Distributional analysis shows that the gap between private and public sector employees is particularly marked at the top end of the distribution.Further analysis explores total reward for full-time employees with pensions by age, occupation, size of the organisation and industrial sector.

Suggested Citation

  • Sarah Levy & Hazel Mitchell & Guled Guled & Jessica Coleman, 2010. "Total reward: pay and pension contributions in the private and public sectors," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 4(9), pages 22-28, August.
  • Handle: RePEc:pal:ecolmr:v:4:y:2010:i:9:p:22-28
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