57% of firms plan salary hike for staff - survey

More than half of businesses will pay their staff a salary increase in 2015, according to employers' group Ibec.

A survey of more than 450 businesses found companies in the high-tech, pharmaceutical and electronics sectors are most likely to give employees a pay rise in the next 12 months.

Almost half of businesses paid their staff a salary increase last year.

Ibec said 57% of companies expect to increase wages by a median of 2% in 2015.

For people earning the average wage of almost €36,000, that is €60 a month, before tax.

High-tech industries are more likely to see pay increases.

91% of medical devices companies and 89% of pharmaceutical employers are anticipating pay rises.

However the majority of small and medium-sized enterprises do not plan on increasing wages in the year ahead, according to ISME.

Figures released today show that 71% of SMEs surveyed by the business group do not expect wage rate changes in the next 12 months.

The group also warned against "unrealistic pay expectations being touted by some politicians", and also said higher wages should not be expected in the back of "a big business/semi-state survey."

In its survey, Ibec itself cautioned that many companies remain in survival mode.

It added that it has no desire for national pay agreements and said pay demands should be moderate to maintain competitiveness.

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