Thousands of PwC staff are to get a 9% pay rise in response to rising living costs and a competitive recruitment market, the accountancy giant has said. The company, with offices in Newcastle, said half of its 20,000+ UK employees would get an increase of at least 9%, while 70% would get a rise of 7% or more.
Now that job vacancies are at a record high, some companies are offering bigger pay rises to attract and retain staff. Government ministers have warned that these salary bumps could further fuel inflation which hit 9.1% in May, its highest level for 40 years.
For many workers, wages are failing to keep up with the soaring cost of goods with regular pay falling at its fastest rate in more than a decade when inflation is taken into consideration. According to the BBC, PwC said salaries for many of its entry-level programmes would also increase, with starting salaries in audit roles rising by 10% and consulting graduates getting a rise of just over 8%.
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Chairman Kevin Ellis said the company "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."
The company said it was investing more than £120m in pay rises, as well as allocating a further £138m to bonuses this year - up £10m on the previous year. Other companies like Lloyds Bank, have offered staff one-off payments to help them cope with the rising cost of living, reported the BBC.
However, Mr Ellis said base pay was "particularly important... given the bearing it can have on mortgages and future salary". Last week, a union representing Rolls Royce workers rejected the company's offer of a £2,000 one-off payment saying it fell "far short of the real cost of living challenges which our members are experiencing".
The Rail, Maritime and Transport (RMT) union at the centre of last week's rail strikes, is looking for a pay rise of at least 7% for its members. The union says Network Rail's offer of a 2% pay rise, with the possibility of a further 1%, was "unacceptable".
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