Report: Salary Increases Stay Below 4% for Fourth Consecutive Year

June 22, 2006 ( - 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%.

“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.