PAY rises are at their lowest level for three years, with latest increases running at an average of 2.8%, says a new report today.
A study of 150 deals in the three months to February showed the lowest figure since March 2003 after a slight fall of 0.1% from January's average.
Pay specialists Industrial Relations Services (IRS) said settlements ranged from 2.4% to 3%, with wage rises in service firms falling below those in manufacturing companies.
Most pay deals were lower than a year ago.
IRS pay and benefits editor Sheila Attwood said: "Our view is that the pay deals concluded in January 2006 mark a turning point, with a downward shift in the level of awards made.
"Yet, despite falling pay awards, rises are still comfortably above the rate of headline inflation."
