Salary freezes may begin to thaw

06.25.09
By Nicholas Storie

Welcome news may come to families struggling to make home loan payments on time - salary freezes may be a thing of the past.

According to a new survey by consulting firm Watson Wyatt, 69 percent of employers that have instituted salary freezes since the onset of the recession are likely to eliminate them within the next 12 months.

This action could bring welcome relief to households that have been counting on some extra money in their paychecks.

And for those people still out of work after a layoff, 62 percent of companies surveyed say that hiring freezes are set to be lifted within the year.

Many older Americans have been delaying retirement until they can replenish their nest egg savings and companies are recognizing this plight. Nearly half (48 percent) of the firms surveyed that had previously reduced their 401(k) matching contributions intend to reinstate them over the next year.

Laura Sejen, global director of strategic rewards consulting at Watson Wyatt, explained that some businesses may keep some or all of their cost-cutting measures for the foreseeable future or potentially even as long-term business changes.

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Households may receive good news from employers