Salary rises set to remain low

The average salary in Britain will increase further next year, but the uplift will still remain below pre-recession levels.

Salaries are forecast to rise by 2.7 per cent in 2011, up from this year's expected rise of 2.5 per cent, according to Aon Hewitt's annual survey. But the consulting company pointed out that with inflation, currently at 3.1 per cent, expected to stay above the Bank of England's target of 2 per cent next year, many employees will not see any salary uplift in real terms for the third year running.

While next year's rise in salaries is up on the 0.6 per cent growth in 2009, it will still lag a long way behind the jump of 4.6 per cent seen in 2007 before the recession. Top executives are in line for the biggest increase of 2.9 per cent last year, reflecting the desire of firms to hang on to their talent. Andrew Macleod, of Aon Hewitt, said: "Companies are keen to keep their top performers and senior employees happy."