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January 27, 2023

Compensation Watch ’22: Does the New Equation Add Up to Better Raises For PwC Employees? (UPDATED)

[Updated original post from July 2 with new raise percentages for A2->S1, A3->S1, and S1->S2; added raise percentages for 2015, 2014, and 2013.]

Now that raises have been doled out at Deloitte, next up is PwC. This is the first compensation cycle in the era of the New Equation, which is just a fancy way for marketing purposes of saying that PwC has a client-first mentality, and the firm likes to throw around the word “trust” many, many times when it tries to explain why the work it does for clients is more important now than it was 12 to 14 months ago. (It’s not.) Whatever. It’s dumb.

But the question we wanted to find out is, have PwCers benefited financially since the firm introduced this silly marketing campaign a little more than a year ago? They’ve definitely been slammed with more work, longer hours, and, in some instances, expanded busy seasons because many teams and offices are so understaffed right now. Employees did get good news last December when the firm announced 5% raises across the board, which went into effect on Jan. 15. We also learned that PwCers who work in Capital Markets and Accounting Advisory Services, Financial Due Diligence, Valuations, and M&A Tax Services got an additional 10% salary boost.

Five months after getting the 5% “Timmy Stimmy,” P Dubs employees have been told what their base salaries will be for FY 2023. A comp thread is ongoing on r/accounting, with PwCers asked to disclose their salary after the 5% raise and what it will be as of July 1. As we did this time last year, we wanted to find out how this most recent round of raises stacks up to previous years’. We examined the 2022, 2021, 2020, and 2019 PwC comp threads on Reddit, and the 2017, 2016, 2015, 2014, and 2013 comp threads on Going Concern. We calculated the average raise percentage for each step up in rank or promotion where data was available (i.e., A1->A2, A2->S1, S2->S3, etc).

Keep in mind these averages don’t take into effect factors like location/cost of living, line of service, academic degrees, tier ranking, and bonuses. So does the New Equation equal better raises for PwCers? 2022 raise percentages are in bold:

A1->A2

  • 15.2% (2022)
  • 17.2% (2021)
  • 0% (2020)
  • 10.7% (2019)
  • 12.5% (2017)
  • 10% (2016)
  • 10.1% (2015)
  • 8.6% (2014)
  • 7.6% (2013)

A2->A3

  • 11% (2022)
  • 20.1% (2021)
  • 0% (2020)
  • 7.6% (2019)
  • 11% (2017)
  • 9.6% (2016)
  • 10.4% (2015)
  • 7.3% (2014)
  • 9.7% (2013)

A2->S1

  • 36.1% (2022)
  • 42.4% (2021)
  • 12.9% (2020)
  • 20.2% (2019)
  • 20.1% (2017)
  • 22.6% (2016)
  • 25.3% (2015)
  • 17.7% (2014)
  • 16.1% (2013)

A3->S1

  • 30% (2022)
  • 32.2% (2021)
  • 10% (2020)
  • 17% (2019)
  • 14.3% (2017)
  • 17.3% (2016)
  • 18.7% (2015)
  • 13.5% (2014)
  • 10.4% (2013)

S1->S2

  • 11.8% (2022)
  • 16.5% (2021)
  • 0% (2020)
  • 14.2% (2019)
  • 11.1% (2017)
  • 10.1% (2016)
  • 11.2% (2015)
  • 10.9% (2014)
  • 7.1% (2013)

S2->M1

  • 38.8% (2022)
  • 40% (2021)
  • 15% (2020)
  • 23% (2019)
  • 20.3% (2017)
  • 36% (2016; only one entry)
  • N/A (2015)
  • 20% (2014)
  • 15% (2013)

S2->S3

  • 14.2% (2022)
  • 24.7% (2021)
  • 0% (2020)
  • 9.5% (2019)
  • 9.5% (2017)
  • 9.3% (2016)
  • 16% (2015; only one entry)
  • 5.4% (2014)
  • 11.3% (2013)

S3->M1

  • 13.6% (2022; only one entry)
  • 24.7% (2021)
  • 10% (2020)
  • 16% (2019)
  • 18% (2017)
  • N/A (2016)
  • 16.2% (2015)
  • 18% (2014)
  • 12% (2013; only one entry)

M1->M2

  • 19.3% (2022)
  • 26.5% (2021)
  • 0% (2020)
  • 11% (2019)
  • 8% (2017)
  • 8% (2016)
  • N/A (2015)
  • N/A (2014)
  • N/A (2013)

M2->SM1

  • N/A (2022)
  • 34% (2021)
  • N/A (2020)
  • 10% (2019)
  • N/A (2017)
  • N/A (2016)
  • N/A (2015)
  • N/A (2014)
  • N/A (2013)

M2->M3

  • 7.6% (2022)
  • N/A (2021)
  • 0% (2020)
  • N/A (2019)
  • 7% (2017)
  • 8% (2016)
  • N/A (2015)
  • 6.9% (2014)
  • N/A (2013)

M3->SM1

  • N/A (2022)
  • N/A (2021)
  • N/A (2020)
  • 9% (2019)
  • N/A (2017)
  • N/A (2016)
  • N/A (2015)
  • N/A (2014)
  • N/A (2013)

SM1->SM2

  • 9.4% (2022)
  • N/A (2021)
  • N/A (2020)
  • N/A (2019)
  • N/A (2017)
  • N/A (2016)
  • N/A (2015)
  • N/A (2014)
  • N/A (2013)

SM2->D

  • N/A (2022)
  • 7% (2021)
  • N/A (2020)
  • N/A (2019)
  • N/A (2017)
  • 5% (2016; only one entry)
  • N/A (2015)
  • N/A (2014)
  • N/A (2013)

SM2->SM3

  • N/A (2022)
  • 4% (2021)
  • 0% (2020)
  • N/A (2019)
  • N/A (2017)
  • N/A (2016)
  • N/A (2015)
  • N/A (2014)
  • N/A (2013)

2021 was a banner year for raises at PwC, making those who work there the envy of many Deloitters, EYers, and KPMGers. But one of the big reasons raises were so inflated last year was because PwC only gave base salary increases to those receiving a promotion in 2020, the first summer of the pandemic. So for A2s, A3s, S2s, and M2s last year, it was like receiving two years’ worth of raises at once. Although raise percentages are down across the board in 2022 compared to last year, many PwCers have seen their base pay rise exponentially over the past 12 months if you include the mid-year salary adjustment they received in January—and even after PwC implemented the cohort pay model in 2021.

The work might suck, but since PwC rolled out the New Equation, a lot of PwCers are making the bucks.

Related article:

Compensation Watch ’22: Deloitte Lifts the Lid on Raises

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1 Comment

  1. Well, I guess we all are stuck in earning for a living and fighting against the inflation. Already Covid-19 has destroyed so much and changed the shape of the world drastically. Anyhow, increments always come with more work load and stress. However, I don’t think that the new equation proved to be beneficial.

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