Base salaries in the banking sector are at a four-year high, according to research from recruitment specialist Poolia.

The analysis shows that during 2010, the average salary for a banking employee in the City was 17% higher than in 2009, 25% higher than in 2008, at the height of the credit crunch, and 17% higher than in 2007.

Poolia’s Andrew Bath, general manager, says: “Many banks are choosing to increase base salaries to compensate for the fact that they are reducing the bonus pool. This is especially true of middle and back office roles, where most employees can expect less generous bonuses in 2011.

“Despite the recent flurry of media coverage, several banks have already announced that their 2011 bonus pools are likely to be down by at least 10% and possibly as much as 30%.

“We expect this to be the case in every City institution. But a continuing uncertain economy, with many banks profits suffering in the second half of the year, as well as economic factors such as the Sovereign Crisis, are leading banks to be cautious, and tighten the grip on costs.”