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Thousands of PwC staff to get 9% pay rise to offset cost of living | Thousands of PwC staff to get 9% pay rise to offset cost of living |
(about 2 hours later) | |
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. | 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 said half of its more than 20,000 employees in the UK would get an increase of at least 9%, while 70% would get a rise of 7% or more. | |
With vacancies at a record high, many firms are offering pay rises to attract and retain staff. | With vacancies at a record high, many firms are offering pay rises to attract and retain staff. |
But ministers have warned big salary rises could further fuel price rises. | But ministers have warned big salary rises could further fuel price rises. |
Inflation - the rate at which prices go up - hit 9.1% in the UK in May, the highest level for 40 years. | Inflation - the rate at which prices go up - hit 9.1% in the UK in May, the highest level for 40 years. |
However, for many people, wages are failing to keep up, with regular pay falling at the fastest rate in more than a decade when taking into account rising prices. | However, for many people, wages are failing to keep up, with regular pay falling at the fastest rate in more than a decade when taking into account rising prices. |
Why are prices rising so quickly? | Why are prices rising so quickly? |
Should public sector workers get bigger pay rises? | Should public sector workers get bigger pay rises? |
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%. | 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%. |
Chairman Kevin Ellis said the company "can't ignore market pressures and want to ensure pay at every level is as competitive as possible". | Chairman Kevin Ellis said the company "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," he added. | "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," he added. |
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. | 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, such as Lloyds Bank, have offered staff one-off payments to help them cope with the rising cost of living. | Other companies, such as Lloyds Bank, have offered staff one-off payments to help them cope with the rising cost of living. |
However, Mr Ellis said base pay was "particularly important... given the bearing it can have on mortgages and future salary". | However, Mr Ellis said base pay was "particularly important... given the bearing it can have on mortgages and future salary". |
Earlier this 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". | Earlier this 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". |
Other sectors have also increased pay in recent months, with supermarket chains Morrisons, Tesco, Sainsbury's and Asda all announcing rises as they battle for staff. | Other sectors have also increased pay in recent months, with supermarket chains Morrisons, Tesco, Sainsbury's and Asda all announcing rises as they battle for staff. |
The Rail, Maritime and Transport (RMT) union, which was at the centre of last week's rail strikes, is looking for a pay rise of at least 7%. | The Rail, Maritime and Transport (RMT) union, which was at the centre of last week's rail strikes, is looking for a pay rise of at least 7%. |
The union says Network Rail's offer of a 2% pay rise, with the possibility of a further 1%, was "unacceptable", pointing to the rising cost of living. | The union says Network Rail's offer of a 2% pay rise, with the possibility of a further 1%, was "unacceptable", pointing to the rising cost of living. |
In May, official figures showed there were more job vacancies than unemployed people in the UK for the first time since records began. | In May, official figures showed there were more job vacancies than unemployed people in the UK for the first time since records began. |
However, earlier this month, Chief Secretary to the Treasury Simon Clarke warned employees they should not expect their wages to rise in line with inflation. | However, earlier this month, Chief Secretary to the Treasury Simon Clarke warned employees they should not expect their wages to rise in line with inflation. |
He told the BBC big salary increases to meet the rising cost of living could end up with a 1970-style "inflationary spiral", where companies hike wages and then pass the cost on to customers through higher prices. | He told the BBC big salary increases to meet the rising cost of living could end up with a 1970-style "inflationary spiral", where companies hike wages and then pass the cost on to customers through higher prices. |
The independent public sector pay review bodies are due to report in the coming weeks on the level of increase for workers - including employees in health, schools and prisons. | The independent public sector pay review bodies are due to report in the coming weeks on the level of increase for workers - including employees in health, schools and prisons. |
Unions are pressing to have the pay increases reflect the rising cost of living. | Unions are pressing to have the pay increases reflect the rising cost of living. |
But Mr Clarke, the Treasury minister in charge of the pay review body process, said there was no automatic link between inflation and pay setting. | But Mr Clarke, the Treasury minister in charge of the pay review body process, said there was no automatic link between inflation and pay setting. |
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