In this pay rise, PwC’s most significant in 10 years, half of all UK employees will receive a minimum salary increase of 9%.

Over £120m is being invested in the pay rises. 70% of employees receiving at least a 7% increase (with 50% getting a rise of 9% or more). Salaries for many of PwC’s entry programmes will also increase - for example, starting salaries in audit will rise by 10%. Those studying the ICAEW Chartered Accountant qualification as graduates will now be offered £32k per year in London. Consulting graduates will now be offered £33.5k per year in London, a rise of just over 8%.

A further £138m is being allocated to bonuses this year - up £10m on last year.

The latest investments are in addition to a £40m investment made in January for pay and promotions.

Kevin Ellis, chairman and senior partner at PwC, said: “Our significant investment in pay reflects the strong underlying productivity of the firm following recent investments, and the continued hard work of our people.

“And as a business and an employer we can’t ignore market pressures and want to ensure pay at every level is as competitive as possible. We know from staff surveys that base pay is particularly important to our people, given the bearing it can have on mortgages and future salary.

“We also looked at the salaries of our entry programmes to ensure they are as competitive as possible. We’ve had record applicants for our student recruitment programmes this year, with students citing the breadth of our business and our truly hybrid working arrangements among the reasons for choosing us.

“However, 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. That’s why it’s important to invest now.”

PwC is taking on more than 2,000 school leavers and graduates this year across the UK. This includes students joining through degree apprenticeships, which PwC has been expanding - Ada college in Manchester being the latest addition.