Real wages have been falling consistently since 2010, the longest period for 50 years, according to a new report.
The Office for National Statistics said low productivity growth seems to be pushing wages down.
Different inflation rates between what is produced and what is consumed was also highlighted.
The study followed a report by the Institute for Fiscal Studies (IFS) which said that while the fall in household incomes has now probably come to a halt, living standards are still "dramatically" down on what they were before the global financial crisis hit in 2008.
The Government said last week that most British workers have seen their take-home pay rise in real terms in the past year.
Real wage growth averaged 2.9% in the 1970s and 1980s, 1.5% in the 1990s, 1.2% in 2000s, but has fallen to minus 2.2% since the first quarter of 2010, the ONS figures showed.
TUC general secretary Frances O'Grady said: "Over the last four years British workers have suffered an unprecedented real wage squeeze.
"Worryingly, average pay rises have been getter weaker in every decade since the 1980s, despite increases in productivity, growth and profits. Unless things change, the 2010s could be the first ever decade of falling wages.
"A return to business as usual may only bring modest pay growth. We need radical economic reform to give hard-working people the pay rises they deserve."