Pay Raises to Be About 5% in ’88 and ‘89, Survey Says

Pay increases should average about 5% this year and next for the nation’s salaried work force, narrowly outpacing expected inflation, according to a survey released Thursday.

The Conference Board, a private business-information group, reported the salaries of workers who were covered by overtime and other labor law provisions, such as clerical workers, would rise an average of 4.8% this year.

Salaries of exempt workers, such as management and professionals, would rise an average of 5%, while executive salary increases would average 5.4%, the group reported.

Average increases for 1989 were virtually the same in all three groups, according to the Conference Board’s salary survey of 649 companies.

“Management appears determined to keep average salary increases to about 5% and not permit an upward escalation,” said Charles Peck, the group’s compensation analyst. “If inflation nudges up, however . . . it will be more difficult to hold the salary increase line at 5%.”

The Conference Board’s Economic Forum has projected inflation, as measured by consumer price increases, of 4.5% this year and 4.7% in 1989, compared to 3.6% in 1987.

The survey also indicated that 8% of the surveyed companies were giving some of their employees lump-sum payments instead of pay raises.