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London - Two-thirds of British company bosses intend to hike staff pay at least in line with inflation over the next 12 months, a survey showed on Thursday.
The Institute of Directors (IoD) said 36% of company directors planned to at least match inflation when raising pay levels for staff, while 29% said they intend to better the rate of price growth.
The survey follows official data on Wednesday that showed earnings excluding bonuses rose by an annual 0.7% in the three months through May - half the rate of inflation and the slowest growth in regular pay since records began in 2001.
"For many people, the recovery is something they hear a lot about but, as yet, have not really felt in their wallets," said James Sproule, chief economist at the IoD.
"For those employed in the private sector questioning when they will start to feel the benefits of growth, the answer is very soon."
The outlook for wage growth is a crucial factor for the Bank of England as it gauges when to raise interest rates from record lows, and also for Britain's government as it courts voters ahead of next year's national election.
The incumbent Conservative Party is highlighting a sharp fall in unemployment, but the opposition Labour party is focusing on what it calls Britain's cost of living crisis.
The IoD surveyed 1 005 of its members between June 12-26.
