Fiducia TogetherWage inflation and pay reviews
Deciding what to pay, and when to change it.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
A pay review sets salary changes, usually annually, against inflation, market rates, performance and affordability.
Why it matters
Pay is the largest cost in most businesses and the thing staff talk to each other about. Both facts make the process worth getting right.
What it looks like in practice
Benchmark against actual local market rates rather than national averages. Decide the principle — inflation, market, performance — and apply it consistently.\n\nThe National Living Wage rises each April and compresses differentials above it, which is a knock-on cost.
What to watch out for
Pay compression, where new starters are recruited at rates above long-serving staff. It is a major driver of turnover and it is invisible until somebody finds out.
Where to get proper advice
https://www.acas.org.uk/ and sector salary surveys.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.