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U.S. PAYCHECKS LIKELY TO INCREASE IN ’90

SHARE U.S. PAYCHECKS LIKELY TO INCREASE IN ’90

Salaried and hourly workers in the United States will see a little more in their paychecks in 1990, according to a survey released Friday.

The study of 2,200 businesses by the Wyatt Co., an independent compensation and benefits consulting firm, indicated that pay raises will average 5.7 percent next year.More than 95 percent of the survey respondents reported using merit increases to reward employees.

Although increases for most employee groups show little change, the study indicated executive merit increases will be somewhat smaller for 1990. The average executive merit increase for 1990 will be 5.8 percent, compared with 6 percent in 1989.

"This level of increase, for both salaried and hourly workers, is similar to what employees have seen for the previous two years," said Ann Bares, a compensation consultant in The Wyatt Co.'s Twin Cities office.

The number of companies that will freeze wages also will drop in 1990, according to the study.

"Wage freezes, which were already used sparingly in 1989, will virtually disappear next year," said Bares. Only 1 percent of all companies will use such a freeze, she said.

The Wyatt Co.'s 1989-90 Salary Budget Survey is a national study representing a cross-section of industries and organizations of all sizes.