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

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In response to rising living costs and a competitive recruitment market, the accountants will be giving their staff a 9% pay increase.

Half of the company's UK employees will get an increase of at least 7%, while 70% will get a rise of 9% or more.

Many firms are offering pay rises to attract and keep staff with vacancies at a record high.

Huge salary increases could lead to more fuel price hikes.

The UK's inflation rate hit a 40-year high of 9.1% in May.

Starting salaries for audit roles will rise by 10%, while consulting graduates will get a rise of 8%, according to the company.

Kevin Ellis said the company can't ignore market pressures and want to ensure pay is as competitive as possible.

With rising living costs, we want to stay competitive and continue attracting the best talent and skills from across the UK.

The company said it would be giving out more bonuses this year than it did last year.

The rising cost of living has led some companies to offer one-off payments to their staff.

Mr Ellis said base pay was important because of the bearing it can have on future salaries and mortgage payments.

The union representing Rolls-Royce workers rejected the company's offer of a one-off payment because it was far short of the real cost of living challenges they were facing.

Wages have increased in other sectors in the last few months, with supermarket chains Morrisons, Tesco, Sainsbury's and Asda all announcing increases.

The Rail, Maritime and Transport union is looking for a pay rise of at least 7%.

Network Rail's offer of a 2% pay rise with the possibility of a further 1% was unacceptable according to the union.

The chief secretary to the treasury warned employees not to expect their wages to rise in line with inflation.

A 1970-style inflationary spiral could happen if companies raise wages to meet the rising cost of living.

The level of increase for workers in the public sector is due to be reported by the independent pay review bodies.

The unions want the pay increases to reflect the costs of living.

There is no link between inflation and pay setting according to the Treasury minister.