Almost three quarters (78 per cent) of employers have received requests for pay rises from staff in the last six months on the back of inflation rises, a new survey shows.
The survey, by employment law firm Peninsula Ireland, also suggests 68 per cent of workers believe their current salary does not meet the average cost of living.
The survey, which was conducted in June, collected data from 1041 employees and 1012 employers across several industries.
Head of Peninsula Ireland Alan Price said: "The current credit crunch is, without doubt, hitting Irish workers hard.”
Mr Price said: "Employers, and employees alike, have been forced to really tighten their budgets to accommodate the current economic climate.
"The record highs in petrol prices have had a detrimental affect not just on transport companies but also those who rely on company cars and fuel allowances.
These companies in particular have seen a sharp increase in the allowance they have had to give to employees."