Nearly 4 in 10 (39%) Irish companies will not be able to award a pay increase this year.
That is according to a survey from IBEC, which says the figure is similar to a previous study at the end of last year, despite recent positive economic news.
In terms of the 61% of companies that are awarding a rise, the median pay increase is said to be 2%. 400 companies were surveyed by IBEC.
The business group is highlighting the situation as it responds to the new deal on public sector pay. The deal will see most public servants having their pay restored by around €2000.
This will happen over three phases between January of next year and September of 2017.
The pay restoration will be achieved through a combination of adjustments to the public service pension levy and a partial reversal of the 2010 public service pay cuts.
The agreement - which will be known as the Landsdowne Road Agreement - will also see the protections of the Haddington Road Agreement extended to September 2018.
Chief Economist at IBEC, Fergal O'Brien, says the pay awards included in it put the public sector at odds with their private sector counterparts, and they should come with further conditions.
Mr O'Brien spoke to Newstalk Breakfast this morning about the survey:
