Average real wage pay rises across Europe fell from 3.6% in 2007 to 1.3% in 2008, according to findings from the Eurofound’s European Industrial Relations Observatory (EIRO).

The report found that the average collectively agreed nominal pay increase in the EU as a whole fell from 7% in 2007 to 6.6% in 2008.

The rate of increase fell between 2007 and 2008 in all but four countries. These were: Germany, Greece, Hungary and the Netherlands.

The rate of increase fell most sharply in Estonia, Latvia and Romania.