Come 2010, employees in the US are likely to take home better salaries, with a survey showing that pay hikes are expected to bounce back next year.
To cope with the raging financial turmoil, many American companies have resorted to steep pay cuts as part of their cost saving measures.
"Pay raises for US workers are expected to rebound in 2010, following a year in which many companies slashed raises in the wake of the recession," said global consulting firm Watson Wyatt.
Companies are projecting median merit increases of three per cent for 2010, according to the Watson Wyatt 2009/2010 US Strategic Rewards survey.
It includes responses from 235 large American employers gathered in May 2009.
Before the onset of recession in 2008, firms projected 3.5 per cent merit increases for 2009. "Now, companies say median merit pay increases will be 2 per cent in 2009," the report said.
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Moreover, lesser number of firms are planning to do away with pay hikes next year.
On the other hand, another survey of 900 companies conducted by one of Watson Wyatt's subsidiaries revealed that only 10 per cent of companies are planning no pay raises for workers in 2010 compared to 25 per cent this year.
"This has been a very difficult year for both employers and their workers. But there is some good news on the horizon.
"Employers plan to give larger raises next year, and many plan to reinstate previously cut pay raises as planning for an eventual economic recovery continues," Laura Sejen who is the Global Director of Strategic Rewards Consulting at Watson Wyatt said.
According to Watson Wyatt, there has been a significant reduction in annual bonus pools as well. Sejen noted that bonuses are certainly a casualty of the recession this year.