| | |
Share

More than half of firms planning pay cuts or freezes

More than half of UK companies intend to put a freeze on pay or cut employee salaries in 2011, figures show.

Data from the British Chambers of Commerce revealed that 49 per cent of firms plan to freeze current pay levels, while 6 per cent plan to cut them.

Some 45 per cent of those questioned said they would be giving their employees a pay rise over the next 12 months.

Government spending cuts may be influencing the decisions of many companies, with 38 per cent claiming the measures will hit their profitability.

However, only 13 per cent expect to have to make redundancies as a result.

Dr Adam Marshall, director of policy at the BCC, said the data shows that businesses are taking a "pragmatic approach" to pay settlements in what is still a difficult trading environment.

"Despite a number of businesses suggesting that pay will be frozen, almost as many are suggesting wage rises in 2011," he pointed out.
 ADNFCR-1898-ID-800319458-ADNFCR

Accountants and Business Advisers © 2012 BDO LLP. All rights reserved. BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. A list of members' names is open to inspection at our registered office, 55 Baker Street, London W1U 7EU. BDO LLP is authorised and regulated by the Financial Services Authority to conduct investment business. BDO is the brand name for the BDO network and for each of the BDO Member Firms.