Wages 'could improve in 2012'

Pay intentions have risen to their highest level since spring 2009, new research reveals.

Conducted by the Chartered Institute of Personnel and Development (CIPD), the survey asked employers if they planned to increase wages in 2012.

An estimated 35 per cent of respondents claimed they did, with the average rise standing at 2.2 per cent.

This is a marginal increase on the previous study's 2.1 per cent and the largest hike is to be found in the manufacturing industry, where workers can expect to receive up to a 2.9 per cent pay rise.

This could be very welcome news, as it is much closer to the current 3.6 per cent rate of inflation than prior figures, which the Trades Union Congress noted have been growing at half the pace of inflationary measures.

"Whatever pay decisions are predicted, it's vital that employers maintain an honest line of communication with employees," commented rewards adviser for the CIPD Charles Cotton.