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Public and private sector workers predict a pay rise in 2010

22 December 2009

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Public-sector workers are expecting their pay to increase next year, despite wages being capped from 2011 and tighter spending measures being introduced, a report has shown.

Staff in private firms are predicting a rise during the next year following recent pay freezes at businesses across the country , the survey of 2,500 employees revealed.

The research, conducted by the Chartered Institute of Personnel and Development (CIPD), found that a 3% increase in wages was expected by workers in private firms, with public sector workers estimating a 2% rise.

One in four private sector staff and a fifth of public sector employees do not think they will see a rise in 2010, the report showed.

Charles Cotton, the CIPD’s reward adviser, said: “While most private-sector workers predict that they will get a pay rise next year, over one in four do not think that this will be the case, focused in hard-hit economic sectors such as construction and manufacturing.

“Public-sector workers are clearly not sensing that the pay storm clouds are gathering. It looks like 2010 will prove to be the last hurrah of this gilded age.

“Given that just over a third of workers did not get a bonus in 2009, it’s not surprising that a lower percentage (26%) predict this will happen in 2010.

“This indicates that workers believe that the economy will improve in 2010 and are hopeful their employer will be able to share the success with them.”

The government recently announced a 1% cap on public-sector wage rises for two years from 2011.

Copyright © Press Association 2009

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