Workers fear wage freeze next year

Fewer workers expect a pay rise next year and a third predict their wages will be frozen, a new study has said.

A survey of 3,000 employees found fewer than three out of five believed they will get a pay rise in 2011, down from 67% at the same time a year ago.

The number of people fearing a pay freeze rose from 25% to 33%, with 2% of those questioned saying their wages will actually be cut next year.

The Chartered Institute of Personnel and Development (CIPD) said its research found public sector employees were more pessimistic about pay, with half predicting a wage freeze.

The report said the "muted" predictions for 2011 were matched by what has happened in recent years, with the number of workers receiving a pay rise falling from two thirds in 2008 to half this year.

The number of people whose pay has been frozen has risen from one in four two years ago to 44% this year, according to the report.

Charles Cotton of the CIPD said: "While the proportion of employees who have seen their pay frozen has increased in 2010, we predict that this will fall next year as more private sector employees enjoy a pay rise and fewer of them receive a pay freeze on the back of the improving economy.

"Even in the public sector, many employees will still see their pay rise next year if they earn less than £21,000 or they are due an increase related to their length of service or their performance. It may be that workers are being very cautious in their pay outlook for 2011 after being disappointed by what happened to them in 2010."