Although more than a third (37%) of firms are implementing pay freezes, a sixth of these are continuing to pay bonuses to staff.

The median pay rise remains at 2%, with pay freezes making up a third of pay settlements, according to the latest figures from the Incomes Data Services (IDS).

For the three months to the end of June 2009, the findings from IDS, covering more than two and a half million employees, shows that, excluding pay freezes, the median pay rise is 2.5%.

Ken Mulhearn, editor of the IDS Pay Report, said: "With the key bargaining month of April now behind us, the pattern appears to be largely set, with freezes at some organisations but (mostly modest) rises at others. However, there are a number of companies still to reach late deals for 2009. And pay reviews are still due in certain key sectors, such as the civil service, retail, road transport and the motor industry."