Pay likely to remain under pressure

Salary freezes seem set to be a feature of the coming year, new research has suggested.

According to a study carried out by the Labour Research Department, an independent consultancy, wage rises are as likely to be kept on hold this year as last, despite the tentative return to economic recovery.

Almost one in three recent pay settlements have seen no increases, a figure that climbed to 51 per cent once deals negotiated on a multi-year basis were discounted.

A number of firms have already announced that a policy of freezing pay rises introduced last year will continue into 2010.