Thousands of PwC staff to get 9% pay rise to help with cost of living

Inflation in Britain hit 9.1% in May, the highest level for 40 years

The accountancy giant is giving 70 percent of its workforce a 7 percent pay rise (Getty Images)

Thousands of staff at PwC are in line for a 9 percent pay rise to help ease the cost of living strain on its workers.

The accountancy giant said that half of its 20,000-strong UK workforce would receive an increase of at least 9 percent, while 70 percent would have a rise of 7 percent or above.

It comes after inflation in Britain hit 9.1 percent in May, the highest level for 40 years, which has seen many people struggling as wages failed to keep up with soaring costs.

Entry level and graduate employees at PwC are also being granted a salary boost, the UK’s biggest accountancy firm said, with starting salaries in auditing positions being topped up by 10 percent and in consulting graduate roles by just over 8 percent.

Company chairman Kevin Ellis said PwC “can’t ignore market pressures and want to ensure pay at every level is as competitive as possible”.

“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.”

As well as investing a further £120m in pay rises, PwC is also allocating a further £138m to bonuses this year, a mark up of more than £10m on last year.

While other companies, including Lloyds Bank, have offered staff one-off payments to help ease the cost of living squeeze, Mr Ellis said base pay was “particularly important... given the bearing it can have on mortgages and future salary”.

It comes after a union representing Rolls Royce staff rejected the company’s offer of a one-off payment of £2,000, which it said fell “far short of the real cost of living challenges which our members are experiencing”.

Earlier this week, Downing Street has argued it would be “reckless” to raise public sector pay in line with inflation, as ministers defended reinstating the triple pensions lock while arguing in favour of wage restraint elsewhere.

The prime minister’s spokesperson stressed the government does want to reward workers in the public sector with a pay rise, but warned against “chasing inflation”, which he said could lead to people’s take-home wages counting for less.