Wages have gone up? That’s barking! (3)
I believe the answer is:
yap
'barking' is the definition.
(a yap is the result of barking)
'wages have gone up?' is the wordplay.
'wages' becomes 'pay' (I've seen this before).
'have gone up?' says the letters should be written backwards.
'pay' reversed gives 'YAP'.
'that's' acts as a link.
(Other definitions for yap that I've seen before include "Bark sharply" , "Natter; small dog's bark" , "gossip -" , "Bark in quick sharp bursts" , "Shrill bark; talk at length" .)