Salaries for top web developers have increased by as much as 27 per cent in the past year, according to research from the Association of Technology Staffing Companies (ATSCo) and SkillsMarket.
The firm said that it was a growth in demand for skills in key web technologies, such as Java, that had driven the increase in salary.
These skills were more in demand due to the popularity of web 2.0 sites such as YouTube and MySpace and many companies were looking to overhaul their websites to offer more interactive content, the report stated.
Businesses were becoming embroiled in bidding wars as they competed to attract the right candidates.
"We are now facing a skills crisis similar to the late 90s," said ATSCo's CEO, Ann Swain.
"Back then it seemed every train carriage had at least one 20-year-old reading a Java manual, but the excitement is more muted now, and graduates are not flocking to learn web technologies in the numbers they once did."
Ms Swain added that pay for developers would continue to rise as long as rising demand for internet technologies and an undersupply of skills remained in place.
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