Nearly 4 in 10 Irish companies won't be able to award a pay increase this year.

That's 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.

The business group is highlighting the situation as it responds to the new deal on public sector pay.

Chief Economist 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: