PAY rises in private firms will be between 2.5% and 4% in the first few months of the New Year, a report has predicted.
Wage analysts Incomes Data Services said settlements were currently averaging 3% - a slight fall on the 3.3% workers were receiving earlier in the year.
Most recent deals have been worth between 2.5% and 4% and almost all current settlements at least matched the rate of inflation.
IDS said it expected little upward pressure on deals in the run up to January bargaining.
It said Government pressure for a 2% target for public sector rises looked a tough line to follow.
Alastair Hatchett, head of pay services at IDS, said: "The conundrum for the School Teachers' Review Body is how to follow the Chancellor's advice while simultaneously addressing the acute shortage problems of teachers in mathematics, physics and modern languages and the fact that the age profile of teachers is such that nearly 50% are due to retire in the next ten years."