Salaries are likely to rise by at least 4.6 per cent on average this year, according to a survey by PricewaterhouseCoopers (PwC).
The figure is down slightly on the 5 per cent base salary increase recorded by PwC last year but ahead of the 4.5 per cent it projected this time last year.
The consultants say that pay will again rise fastest in the financial services sector where the average rise in base salaries is expected to be around 5.4 per cent, slightly lower than the 6.2 per cent recorded in 2004.
Employees in IT and telecoms sector can expect the lowest increases, with an average of 3.7 per cent, slightly ahead of the 3.5 per cent last year.
"Overall, employers are expecting salary increases in 2005 to be slightly less than increases actually awarded last year," said Ms Frances Leahy, a senior manager with PwC HR Services. "However, we need to be mindful that the predicted figure of 4.6 per cent for 2005 is likely to be even higher by the end of the year."
A breakdown by staff category indicates that only executives can expect pay to rise faster in 2005 than 2004, if only fractionally. The report projects rises of 4.5 per cent for this cohort compared to 4.4 per cent secured last year.
Senior management are forecast to receive a 4.7 per cent increase this year, down marginally on the 4.8 per cent recorded last year, with middle managers getting 4.6 per cent (4.8 per cent in 2004), professionals 4.7 per cent (5 per cent), clerical grades 4.6 per cent (5 per cent) and manual or line workers 4.6 per cent (4.7 per cent).
