Last week, junior auditors were informed via webcast that some pay bands would remain unchanged while others would see modest increments of 3% or 6%, effectively resulting in real-term pay cuts, the Financial Times reports.

This disclosure follows a memo from PwC’s chief people officer, Ian Elliott, telling employees that salary increases would be less generous than last year’s record increases, when adjustments were initiated to keep staff in a competitive labour market amidst escalating inflation.

Despite this, employee disillusionment is evident, especially among senior associates in the audit division who may consider resigning due to the pay freeze. This development defies the UK audit regulator chair’s appeal to bolster junior employees’ salaries to enhance the profession’s attractiveness.

This comes amid soaring average profits for PwC UK partners, peaking at £1 million last year, although this figure is anticipated to decline this year following substantial wage hikes of at least 9% extended to half the workforce last summer.