A new Watson Wyatt survey says 44% of employers plan to reverse pay cuts made during the recession. That’s up from 30% in June.
Also, about one-third of employers plan to unfreeze salaries, up from 17%. And 25% of employers plan to restore 401(k) contributions cut during the downturn in the next six months. Only 5% planned such a move in June.
Employer health insurance costs are projected to increase at double-digit rates again in 2010, according to various consulting firm projections. One leading study, Aon Consulting’s survey of 60 insurers, projects that PPO, POS and HMO plans will rise in the 10.4%-to-10.7% range next year, which is similar to the expected increases for 2009. Employer prescription drug costs are expected to remain in the 9% range next year.