Irish companies expect to award their managers and general employees wage increases averaging 6 per cent next year, according to Watson Wyatt in its annual compensation report.

But with inflation running at around 6 per cent, the rise in salary levels in real terms can be expected to be minimal in many cases, if not totally negated by inflationary effects, the report said.

Companies are reporting that they expect to increase salaries this year by a median level of 5.5 per cent for general employees and 6 per cent for managers.