Increased business confidence and the continuing shortage of available skilled staff are increasing the gap between top and bottom level pay rates, according to the latest annual salary survey from Kelly Services.

The poll suggests that employers are now offering greater financial rewards to retain staff.

It found that a PA/secretary in the City of London earned between £20,000 and £32,500 last year.

But there are still major regional pay differences across the UK, with the south, south-east and London still offering the best pay rates.

Pay in the south-west as a whole is lagging well below the national average. But the large number of contact centres in the region means that call centre advisers receive the highest pay outside those working in London and the south-east.

“As we predicted in last year’s report, the UK job market continued to strengthen in 2004 as demand for both temporary and permanent staff increased,” said Steve Girdler, marketing director at Kelly Services.

“Employers who wish to attract the best recruits need to ensure that their financial rewards are competitive, but they also need to look beyond pay to develop strategies that address the impact of upcoming employment legislation and the UK’s changing demographic profile,” he added.