Nearly three in five employees working in the UK have experienced a pay freeze in the first six months of the year, according to a new survey.

The Chartered Institute for Personnel and Development (CIPD) also revealed that six per cent of respondents have had their base pay cut.

These figures reflect the government”s freeze on public sector pay, which is further adding to the financial difficulties experienced of people up and down the country.

The report suggests that many people”s level of pay is beneath the current cost of living. Because of a freeze, their salaries are unable to match the rate of inflation.

Charles Cotton, performance and reward adviser at the CIPD said: “Even those who are lucky enough to get an increase in their pay will find it below the current cost of living, compounding consumer belt-tightening.”

In some instances, pay freezes have been accompanied by shorter working weeks as companies seek cost-effective ways of responding to the sluggish economic recovery without having to lose staff.