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Deloitte repays pandemic pay cuts

Deloitte will repay partners and staff up to six weeks of COVID-related pay cuts after posting better-than-expected first-half results.

Business Jotham Lian 18 November 2020
— 1 minute read

Deloitte chief executive Richard Deutsch has announced that all staff who accepted pay cuts during the pandemic will now receive a payment equivalent to six weeks of forgone pay.

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Staff will also continue to receive up to an additional 10 days of leave that must be used before 31 January 2021.

In April, the big four firm announced that staff would see their pay cut by 20 per cent for four months due to the economic effects of COVID-19.

Deloitte later revealed that it would make approximately 7 per cent of its over 10,000-strong workforce redundant in June — the largest redundancy program across the big four — after the firm experienced a 19 per cent year-on-year decline in revenue in May.

“Our half-year results are strong and we are optimistic about 2021. I am so proud of the hard work, dedication and focus of our people to help our clients navigate through this crisis,” Mr Deutsch said.

“Our continued better-than-planned performance is a testament to our market-leading skills and capabilities.

“We promised our people that we would continuously review our performance and recognise their hard work and contribution. It is to that end that we can announce that we will return a payment equivalent to six weeks of forgone pay to our staff who accepted the pay variation proposal.

“Our commitment to our staff that they will get the full special leave allocation of up to 10 days remains.”

The move to repay staff a portion of their pandemic-related pay cuts comes after fellow big four firms KPMG and EY announced similar moves earlier this year.

KPMG has repaid about 1 per cent of its expected 6.7 per cent annualised pay cut, while EY’s 1 per cent repayment reduced the annual impact of its cuts to 2.3 per cent.

PwC, which moved its workforce to a four-day working week with a corresponding reduction in pay in May, has yet to announce a repayment of pay cuts.

Deloitte repays pandemic pay cuts
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Jotham Lian

Jotham Lian

Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.

Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.

You can email Jotham at: This email address is being protected from spambots. You need JavaScript enabled to view it. 

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