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

Sarah Levy, Hazel Mitchell, Guled Guled and Jessica Coleman
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Sarah Levy: Office for National Statistics
Hazel Mitchell: Office for National Statistics
Guled Guled: Office for National Statistics
Jessica Coleman: Office for National Statistics

Economic & Labour Market Review, 2010, vol. 4, issue 9, 22-28

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.

Date: 2010
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