More companies are rolling back pay cuts

More U.S. companies are restoring pay cuts and contributions to their employee retirement plans, according to a survey by Arlington, Va.-based Watson Wyatt Worldwide Inc.

33 percent of companies that froze salaries plan to unfreeze them within the next six months, up from 17 percent that said they would lift salary freezes two months ago, the survey found. Among the companies that cut salaries, 44 percent plan to roll back those cuts within the next six months, up from 30 percent two months ago.

Among employers that have reduced company contributions to 401(k)s, 24 percent plan to reverse those reductions within six months, compared to just 5 percent two months ago. The reversals won’t necessarily bring take home pay back to pre-recession levels though.

Watson Wyatt said most companies that have raised employee health care premiums do not intend to lower them, and many employees will see higher premiums and deductibles in 2010.