Workers suffered the biggest drop in wages since 2013 this year, as unions slammed the government as "missing in action" over the issue.
Wages fell by 1.2% between January and March, according to the Office for National Statistics (ONS).
That is the biggest drop since 2013.
The Trade Union Congress (TUC) has accused the government of going “missing in action” as Britain’s cost of living crisis deepens.
The TUC, a group of trade unions, said real wages across the economy are down by £68 a month compared to a year ago, and £131 a month in the public sector.
That adds up to an £816 loss for private sector workers if the situation stays the same, or £1,572 for state employees.
The reason is that inflation is soaring and that real-terms pay is not moving to keep up with this.
Inflation is expected to reach 9% this week, as the cost of living crisis continues to unfold across the UK.
TUC general secretary Frances O’Grady said: "Working families deserve financial security.
“But millions are at breaking point as real wages plummet and bills soar.
“The government is missing in action at the worst possible time.
“We urgently need a windfall tax on oil and gas companies to help fund energy grants for struggling households.
“And we need a proper boost to Universal Credit and the minimum wage to get money back into people’s pockets, and to inject much-needed demand into our economy.”
Ignoring inflation, private sector pay was up 1.6% and public sector wages rose 8.2%.
Victor Trokoudes, chief executive of savings firm Plum, said: "While some may be receiving a boost to their pay, it still doesn't go far enough to keep pace with inflation.
"Interestingly, private sector growth is largely down to bonuses which is not something the average person can safely rely on in the future, if their finances are to keep up with growing inflation."
The number of people out of work has fallen to a record low, the ONS added.
The unemployment rate fell to 3.7%, or 1.2million workers - the lowest since 1974.
There were also more jobs being advertised than unemployed people for the first time since records began.
There were 1.29million job ads posted between February and April.
The number of people switching jobs also hit a record high in the period.
The ONS said this was due to people resigning from posts, not being fired or laid off.
An ONS spokesperson said it all added up to a "mixed picture for the labour market".
