Pay freezes to continue

Employees in the UK expect pay levels to remain static into 2011, according to new research.

A study from the Chartered Institute of Personnel and Development (CIPD) found that a third (33 per cent) of workers expect a pay freeze, signalling that they are pessimistic about the economic outlook.

In contrast, only a quarter of workers predicted a pay freeze in 2010.

However, the number of people expecting increased perks in 2011 dipped from 67 per cent to 58 per cent in 2009.

There was a notable difference between expectations in the public and private sector, with nearly two-thirds (61 per cent) of workers in the private sector expecting a pay rise.

Nearly half (49 per cent) of workers in the public sector were expecting their wages to remain frozen.

The CIPD earlier this month warned that it was essential for the government to ensure that vital HR infrastructure remains, despite the cuts, because of the potential impact on the quality of front-line services.

Published on: December 21, 2010

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