About a third of US employers, 35%, are reducing their projected 2021 salary increase budgets amid weaker-than-anticipated results and cost management concerns, according to a survey of 705 employers by Towers Willis Watson. On the other hand, 50% are keeping them intact.

Employee groups other than executives are projected to receive salary increases of 2.6% in 2021. That’s down from an earlier survey that found projected increases of 2.8%. About one-in-six employees will not receive a pay raise in 2021.

The salary increase for top executives is expected to be 2.5% in 2021.

“The pandemic’s economic implications have led employers in virtually every industry to rethink their compensation plans and budgets for the coming year,” said Catherine Hartmann, North America Rewards practice leader, Willis Towers Watson. “For many companies, reducing salary budgets, and in some cases, suspending pay raises, was the most viable option, as they balance remaining competitive with maintaining financial stability.”