Almost half of recent pay deals in private firms were higher than a year ago, with an average settlement of three per cent, according to a new report.
Around two out of three settlements were worth at least three per cent, while one in three paid three and a half per cent or more, said Industrial Relations Services.
An analysis of more than 50 awards in the three months to November 2006 showed that the proportion of pay awards at the higher end of the scale increased in the latest period.
IRS pay and benefits editor Sarah Welfare said: "More and more employers are awarding higher pay increases as inflationary pressures build, but this trend is not yet strong enough to move the going rate above three per cent.
"With retail prices index inflation at its highest level since May 1998, running almost one percentage point above pay settlement levels, the likelihood of higher pay deals being settled in January through to April appears strong."
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