Over half of all Irish companies plan to pay their employees more in 2015.

A new survey from Ibec, claims base salaries are set to rise by 2% this year.

The stats from the business group also show that just 1% of firms cut their basic wages in 2014.

However, despite the good news they are warning that many firms are still in survival mode and simply can't afford pay rises.

Ibec CEO, Danny Mc Coy, says the Government needs to take a number of steps:

Chief economist with IBEC Fergal O'Brien spoke to Newstalk Breakfast this morning and stated that the majority of workers are going to get a 1% increase as a result of tax deductions earlier in the year.

He also stated this may occur more with high tech companies and those that are prominent in the export market.

However, he also told Breakfast that this does not mean all companies will necessarily raise employees wages: "I think we need to be realistic in terms of what can be delivered over the course of 2015. In the context of improving the economy but also the competitive pressure and the cost pressure that many businesses up and down the country are still facing."

"Pay rates in much of the noughties were simply far too high."