Over 70% of companies are planning to award pay rises next year.

But IBEC's latest HR Update also reveals that increases will be modest - about 2% on average.

The employers group says the growth is due to record low inflation and a recovery in economic confidence.

So far in 2016, 64% of Irish companies have awarded pay increases according to IBEC - this compares to 71% who were expected to give pay rises at the beginning of the year.

Maeve McElwee, IBEC's Director of Employer Relations joined Newstalk Breakfast - she said that Irish businesses are delivering "steady and competitive wage growth."

She added that public pay increases could put excessive pressure on private companies to offer pay rises:

"In reality the Landstown Road Agreement is in place, all the trade unions have signed up to that. It's important in terms of managing pay expectations that we don't set up a 'leap frogging situation.' These pay increases need to be managed in a structured way," she told Newstalk.

Ms McElwee continued to say that the Landstown Road Agreement is the means of doing this, and that creating "deals outside of the the Landstown Road Agreement will only serve to increase wage expectations - and it's important that wouldn't get out of control."