Latest figures released from research by the Chartered Institute of Personnel and Development collated from 1,000 employers indicates the worst of the recession may be behind us.
Economic uncertainly is moderating wage forecasts the report reveals however companies are relatively optimistic they will be able to increase salaries by a mean basic pay rise of approximately 1.7%. This compares to 1.5% in the previous 3 months and an increase on 1.3% this time last year. The latest figures for the last quarter are the highest level of intent to increase wages by employers since spring 2009.
The private sector and in particular manufacturing and production firms are forecasting the highest increases. Within the private sector, a third of employers reported they predicted a pay rise with the average expected to be 2.2% with manufacturing and production forecasting the highest increases at 2.9%. This is followed closely by the service sector at 2.7%.
30% of the public sector is expected to replace a pay freeze with a 1% cap on wage rises as the government cut backs continue to bite in this sector. However the average increase within this sector is expected to by 0.8%, which is an increase from the previous 0.3%.
Chartered Institute of personnel and Development rewards adviser Charles Cotton said: "While the predicted increases in pay settlements reflects a cautious optimism among members in the private sector that the worst may now be over, uncertainly about how fast the economy will improve is acting to moderate pay forecasts and leading many employers to hedge their bets on the outcome of the final decision."
He continued: "As we move further into the pay round and as organisations get a better idea of how well they and the economy are likely to perform, we should see fewer feeling unable to predict the outcome of their annual pay decisions."
Debt and Wages
If you have debt problems then a wage increase could be just what you're looking for to help pay the bills. The increased cost of living means extra pressure on the purse strings, however there are debt solutions you can enter if you have a severe debt problem.
The applicable debt solutions will depend on where you live in the UK. Debt Support Trust help people across the whole of the UK. The law is different between England, Wales and Northern Ireland compared with Scotland. As such, there are some different debt solutions.
If you live in England, Wales of Northern Ireland a debt management plan, IVA or bankruptcy could help you. If you live in Scotland then a Trust Deed Expert could help with a Protected Trust Deed or even a debt arrangement scheme.