Companies are reporting the same median pay increase for 2007 as they did for 2006 for both exempt and nonexempt employees, according to a survey of 441 companies by the Conference Board.
Survey respondents reported a median pay increase of 3.5 percent for nonexempt and exempt employees and 3.8 percent for executives in 2007.
Respondents in the financial services industry reported a median pay raise of 4 percent for nonexempt employees and 3.9 percent for exempt employees.
"Moderate inflation has allowed employers to continue to control payroll costs," says Charles Peck, compensation specialist at the Conference Board. "This continued control is reflected in the pattern of salary increase budgets this year compared with last year's projections."
The Conference Board projects a 3.1 percent rise in inflation for 2006 and 3.3 percent for 2007.