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Benefits June 22, 2006
Report: Salary Increases Stay Below 4% for Fourth Consecutive Year
June 22, 2006 (PLANSPONSOR.com) - For the fourth
consecutive year, salary increases are below 4% as employers
rein in spending, The Conference Board's latest survey
reported. Only the executive group is estimated to rise 3.8%
in 2007, but all other industries and employees are expected
to receive salary increases of 3.5%.
Reported by Leslie Ziober
“Moderate inflation has allowed employers to continue to control payroll costs,” said Charles Peck, compensation specialist at The Conference Board, in a release. “This continued control is reflected in the pattern of salary increase budgets this year compared with last year’s projections.”
According to the board’s survey, there will be a 3.1% rise in inflation for 2006 and 3.3% for 2007. The survey also estimates that inflation will be less than median salary budgets in both 2006 and 2007.