A pay increase of 3.3 percent is recommended for farm workers in England for next year, according to an annual industry report.
This year's recommendation, by Strutt & Parker, is the second year in a row where a pay increase in excess of the rate of inflation is suggested.
It says farm businesses may need to deliver the increase to keep in line with above-inflation increases in the National Living Wage and rising agricultural wage rates in the rest of the UK.
The annual report is solely aimed at farm employers in England as they are no longer covered by rates set down by the Agricultural Wages Board (AWB).
The guidance is issued based on analysis of key market indicators, such as what has been agreed by the continuing AWBs, the rate of inflation and the outcome of public sector pay awards.
In Scotland, Wales and Northern Ireland, minimum pay levels for farm workers are still set by official pay review bodies.
However, in England the AWB was disbanded in 2013, leaving employers with no formal figures on which to base their annual pay reviews, which traditionally take effect from 1 October.
The pay bodies in Wales, Northern Ireland and Scotland have agreed pay increases for Craftsman Grade workers (Grade 4 Equivalent) of between 2.2% and 4.8%, with effect from 1 April 2019.
The highest rate agreed was in Scotland where the minimum rate for a Craftsman worker is now £9.46/hr.
George Chichester, director in the farming department of Strutt & Parker, said the suggested wage hike 'may be higher than many employers have been expecting'.
“We are suggesting that employers in England consider a 3.3% increase to the Craftsman rate to bring it into line with wage rates in Scotland.
“While employers may feel this is challenging, at a time when profitability is being squeezed, it feels unavoidable if the premium for Craftsman Grade workers is not to be eroded still further.
“Employers should also be aware that given the National Living Wage is expected to rise again in April 2020 to £8.67/hr, wage levels for Standard and Basic workers are likely to need to increase again in the Spring.”
Mr Chichester said that when reviewing wages, employers may want to take into consideration other non-pay benefits which are part of a package, such as accommodation and opportunities for career progression.
“While it may be appropriate for lower grade workers to receive an above-inflationary award, this may not be appropriate for employees who are already on attractive packages,” he said.
However, he pointed out that employee’s pension contributions through auto-enrolment had risen to 5% in April 2019, which means that despite wage increases in recent years, their take-home pay may have increased very little, or might even have reduced.
