The new year might see more gloomy faces than smiling ones amongst the UK employees, for majority of companies are either planning wage freezes or pay cuts.
A whopping 63 per cent of the employees surveyed by the British Chambers of Commerce are looking to freeze pay or bring down the salaries of employees.
And other 18 per cent are considering the "removal of benefits, such as bonuses and gym membership".
"The persistent squeeze on the employee pay packet is an indication that companies do not see economic conditions dramatically improving in 2010, despite hopes that the end of the recession may have arrived in the final quarter of 2009," the BCC said in a statement today.
According to the survey of 260 business' in Britain, as many as 67 per cent of the firms would be operating at the same or reduced capacity levels in the first quarter of 2010.
Ravaged by the global financial meltdown, the nation is mired in recession and millions of jobs have vanished as companies embarked on cost cutting measures.
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"It's clear that another tough year is in store for the private sector," BCC Director General David Frost said.
Meanwhile, another survey showed that British business leaders anticipate the economy and business activities to pick up in 2010.
According to the recent survey by UK research firm Ipsos MORI showed that 36 per cent of the business leaders surveyed, are upbeat about the economic situation next year.
"In last year's survey only 4 per cent of respondents believed that the UK economy would improve in 2009. This has gave rise to over a third (36 per cent)...," the report said.
Moreover, 53 per cent of the respondents expect that business would improve in the year 2010.
The Ipsos MORI Captains of Industry survey is based on respondents, who are chosen from the country's top 500 firms (by market capitalisation), top 500 (by turnover), and top 100 (by capital employed). Respondents include Chairman, CEO, MD/COO and Board of Directors, among others.
"There is optimism and confidence amongst the leaders of our most successful businesses on a scale not seen for number of years," Ipsos MORI's Chief Executive Ben Page said.