It's due to rising costs.
1 in 5 businesses are worried that they will not survive the next 12 months, according to a midlands recruitment expert.
Companies are concerned with rising costs and a widespread staff shortage that is expected to continue into 2030.
As a result, many are considering offering other benefits in place of pay rises, such as flexibility in hours and hybrid working and extra holidays.
Jasmine Elkhershi, Marketing Manager with AllPro Recruitment says that certain industries are more likely to offer pay rises than others: