Business Sentiment August 2011 - Pay

Over seven out of ten (72%) companies surveyed expect, or have already implemented, a pay freeze in 2011. Basic pay rates, on average, are expected to be slightly reduced in 2011, down by -0.2% across all respondents. Some 18% expect to increase basic pay rates this year, while 7% expect to decrease them.

Looking ahead to 2012, almost two-thirds (64%) of respondent companies intend to freeze pay. More companies expect to increase pay in 2012, 27% compared with 18% in the current year. Where companies expect to increase basic pay rates in 2012, the median increase is +2%. Very few (5%) respondent companies expect to decrease pay in 2012. Across all respondents the average expected change to basic pay rates in 2012 is a slight increase of +0.37%.