Page last updated at 01:28 GMT, Tuesday, 22 December 2009

Public sector 'still expects raises despite recession'

Wage slip
The government's two-year cap on public sector pay begins in 2011

Most public sector workers are still expecting a pay rise in 2010, despite the impending clampdown on earnings in the sector, a survey has found.

The public sector has been insulated from the worst of the recession, but a 1% cap on wage rises is now planned.

But according to the Chartered Institute of Personnel and Development survey, most public sector workers still expect a pay rise of 2% in 2010.

Workers in private firms predicted that their pay will rise by 3% next year.

The survey of 2,500 people did find that one in four private sector staff and a fifth of public sector employees do not think they will get any pay rise in 2010.

'Last hurrah'

Charles Cotton, the CIPD's reward adviser, said: "While most private sector workers predict that they will get a pay rise next year, over one in four do not think that this will be the case, focused in hard-hit economic sectors such as construction and manufacturing.

"Public sector workers are clearly not sensing that the pay storm clouds are gathering. It looks like 2010 will prove to be the last hurrah of this gilded age.

"Given that just over a third of workers did not get a bonus in 2009, it's not surprising that a lower percentage (26%) predict this will happen in 2010.

"This indicates that workers believe that the economy will improve in 2010 and are hopeful their employer will be able to share the success with them."

The Institute interviewed 2,500 for its survey.

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