Slowing pay growth triggers a smaller rise under the triple lock, but the pension is still expected to surpass £13,000 a year, reviving debate over its long-term cost.
Pensioners could see their annual income increase under the government's triple lock policy, according to a BBC report.
Continued job cuts by British companies coincide with slowing pay growth, a figure that could trigger a 3.9% rise in the state pension next year, according to reporting by The Guardian.
Slower wage growth feeds into the triple-lock formula, pushing the state pension past the income tax threshold, while new labour market data shows continued weakness in payroll employment.
Official data shows earnings growth easing amid a cost-of-living squeeze linked to the Iran war, complicating the Bank of England's coming interest rate decision.
Slower wage growth of 3.9% is expected to trigger the increase, pushing the state pension above the frozen tax-free personal allowance and reviving debate over the triple lock's affordability.