SALARY cuts and reduced working hours are affecting almost half of all households, with money matters now having overtaken the pursuit of personal happiness in lists of priorities, a study has found.

SALARY growth rates across all business sectors are likely to slow significantly this year, according to a new survey published by PricewaterhouseCoopers.

SALARY demands in banking and construction softened this year in response to the slowdown in the construction sector and the uncertainty in international financial markets.