Diversity Pay Report (2024)

Headlines for 2023

We have seen a reduction in nearly all our gender pay and bonus gaps, our socio-economic background pay and bonus gaps and in all our disability pay and bonus gaps. We are particularly pleased to see a sustained downward trend in our median pay and bonus gaps for gender, socio-economic background and disability.

This positive trend reflects our commitment to delivering against our five-point action plan, particularly re-wiring our people processes linked to recruitment, work allocation, performance management and promotions. We know from experience that these actions serve to strengthen the diversity of our talent pipelines and indeed this year, of our internal admissions to partnership, 42% were women (40% FY22) and 19% from an ethnic minority background (14% FY22).

However, while the high volumes of recruitment have served to boost the representation of ethnic minority talent in our business, this has primarily been at the more junior and lower paid grades. As a consequence, we have seen an erosion of the negative ethnicity median pay gap and an increase in the median bonus gap.

When we then look at the specific gaps by sub-ethnic groups, we can see that the significantly higher levels of representation of Asian and Chinese talent in our most junior grades are driving these changes this past year. Indeed, all of our pay gaps are driven by the under-representation of the relevant population in senior, more highly paid roles. This is why we have set targets by grade for gender, ethnic background and socio-economic background which are based on accelerating our progress over a five+ year period. Put simply, delivering our targets is essential to closing these pay gaps.

Alongside this, we are also progressing our plans to increase the levels of disclosure in relation to disability and sexual orientation to enable us to set targets as well as conduct reliable and valid pay gap analysis because we know that small population sizes have the potential to impact our year on year outcomes.

It is important to note that these gaps are different from equal pay and at PwC we are committed to ensuring our people are paid equally for doing equivalent jobs across our business. We take action to address any gaps and to make sure all our policies and practices are fair.

_{This disaggregated pay gap data is calculated as the difference between the average earnings received by employees from a specific ethnic background compared to White Ethnic Groups.}

_{Note that Chinese is included in the Asian numbers and also reported on separately.}

_{* Numbers have been restated for April 2022 pay gap due to a change in methodology relating to the eligible population for inclusion and inaccuracies relating to additional payments which should have been included in the 2022 data}

_{This disaggregated pay gap data is calculated as the difference between the average earnings received by employees from a specific ethnic background compared to White Ethnic Groups.}

_{Note that Chinese is included in the Asian numbers and also reported on separately.}

• Regulatory data is based on a snapshot date of April 2023. The hourly pay gap data is hourly pay (including bonuses) in April 2023 and the bonus gap data is all relevant bonus and recognition payments in the year to 5 April 23.
• Data including partners reflects the FY23 financial year. This reflects distributable profits for partners and staff total cash (pay plus relevant bonuses, including the July 2023 staff bonus for the FY23 financial year).
• A mean gap is a calculation of the difference in average pay or bonus of a person in one group in our organisation versus the average pay/bonus of a person in a comparator group, regardless of the role held within our organisation. A median gap is a calculation of the relevant pay/bonus gap based on the reward of the individual in the exact midpoint between the lowest and highest-paid person in one group in the organisation versus the equivalent person in the comparator group.

• Quartiles are calculated by ranking the pay for each employee from lowest to highest. This list is then divided into four equal sized groups of one group and the comparator group. To the right it shows the percentage of people in each of these groups. This year we have updated our methodology to show % of “undisclosed” in the relevant population.
• Negative pay gaps reflect a pay gap in favour of the minority group.
• By law, we are only required to calculate and disclose our gender pay figures. In addition to this, we are continually assessing pay from a range of other perspectives, including in relation to our ethnic minority employees, employees from a lower socio-economic background, employees with disabilities and lesbian, gay and bi-sexual employees.
• PwC has two employing entities: PwC Services and PwC LLP. Employment between these two entities is largely driven as a result of historical mergers and acquisitions. We are legally required to report on both entities, however data shown under PwC UK shows pay information for our combined population and is most representative of the firm.

What are we doing to close our pay gaps?

We are pleased to be making progress but we know we need to stay focused. Over the past year we have been working on this agenda more collaboratively with our staff who are helping to shape our work and contribute to our progress and this is clearly paying dividends and will continue in the future. Here you can find our five-point action plan and more information on the actions we are taking to drive transformative change across our firm to make sure all our people have a strong sense of belonging and trust in our firm.

We can confirm the data reported is accurate.