Thousands of PwC staff to get inflation-matching pay rise
PwC is handing thousands of staff an inflation-matching 9pc pay rise to cushion the blow of soaring living costs.
Half of the Big Four accountant's more than 20,000 UK employees will receive an increase of at least 9pc despite warnings from ministers that pay rises could add fuel to the fire on inflation.
The company said it could not “ignore market pressures” and had to stay competitive to attract talent. It will cost the company £120m and an extra £10m will be spent on bonuses, according to the Sunday Times.
It came as Boris Johnson insisted there would be “no point” in giving public sector workers a pay rise because it would just lift prices even further.
Speaking at the G7 summit in Germany, the Prime Minister said: “I know that people will find that frustrating but I’ve got to be realistic with people about where we are. I think, I’m pretty certain of this, that our inflationary pressures will abate over time, and things will start to get better.”
Inflation in the UK hit a fresh 40-year high of 9.1pc in May as demands for pay to keep up with prices causes a summer of industrial strife. There are fears that teachers and NHS staff will follow rail workers in walking out over pay after Britain was hit by three days of RMT strikes last week.
However, PwC is boosting pay in a bid to keep hold of workers. Starting salaries in audit roles at the company will climb by 10pc while graduates in consulting roles will receive over 8pc. Some 70pc of workers would receive an increase of at least 7pc.
PwC chairman Kevin Ellis said the auditor “can't ignore market pressures and want to ensure pay at every level is as competitive as possible”.
He said: “We know pay will be an increasingly important consideration given rising living costs - we want to stay competitive and continue attracting the best talent and skills from across the UK."
Some companies are handing workers one-off payments to help them cope with the cost-of-living crisis but public sector workers face a battle to receive substantial wage hikes.
However, there are fears that high inflation will become entrenched if too many workers receive substantial wage increases, feeding price growth. Bank of England governor Andrew Bailey has called on workers to show restraint over pay despite forecasting 11pc inflation by the end of the year.
