Fewer than one in four workers are receiving a bigger wage increase than a year ago, a new report by Industrial Relations Services (IRS) has shown.

An analysis of 181 settlements in the three months to May showed that most agreements in the private and public sectors were worth around 3%.

Half of the deals analysed were worth less than what they were a year ago, while a third were the same.

IRS’ Sheila Attwood said: “As we head into the quieter end of the bargaining calendar, the median basic pay increase is at the same level as headline inflation.

“This gives employees an increase in pay equivalent to the increase in prices only.

“However, over the coming months, we expect the strength of headline inflation to keep pay awards at their current 3% benchmark.”