KPMG trims pay offers in Reading and Watford, says existing salaries unaffected

KPMG has reduced the pay ranges it offers for roles in commuter-belt offices including Reading and Watford, bringing those ranges into line with pay offered in cities such as Birmingham and Manchester, a change that could leave some new joiners or promoted staff thousands of pounds worse off compared with a year earlier. A KPMG UK spokesman said: "We carry out annual benchmarking to guide our reward strategy. This year, it has led to adjustments in regional pay scales in some areas. No colleagues have had their salaries decreased as a result."

The regional pay shake-up comes amid wider cost-management measures at KPMG UK. The Times reported the firm enacted a pay freeze for thousands of employees in 2023 and has axed hundreds of jobs across its UK business in recent years. GoingConcern supplied additional detail, saying the firm froze pay and cut bonuses for 12,000 people "two Christmases ago" and that about 200 client-facing and back-office roles were cut in June.

Financial performance figures cited alongside the pay moves underscore mixed signals from the firm. The Times said KPMG's revenues rose by 1 per cent last year while partner pay climbed 9 per cent to an average of £816,000. Industry site GoingConcern reported partner pay of £746,000 for 2023, up 4 per cent from the prior year, and also described partners as having "taken home a record £816,000 each last year." GoingConcern reported KPMG UK revenue of £2.99 billion for the year ended September 30, 2024, a pre-tax increase of 11 per cent over 2023, and said pre-tax profits rose 11 per cent to $404 million (£324 million) for that period.

Junior grades have faced separate changes to compensation structures. The Financial Times, as reported by The Times, said junior auditors were affected by the removal of a "recharges" system that had allowed claims for weeks in which staff worked more than 50 hours, effectively stripping overtime pay for some auditors. The Times story and its details were widely shared, including in a LinkedIn repost by Daniel Woolfson and a link circulated on Reddit's r/economy forum.

KPMG leadership has framed the adjustments as part of broader benchmarking and investment strategy rather than across-the-board cuts. Jon Holt, Group Chief Executive and UK Senior Partner, said the firm had performed well in challenging market conditions and that KPMG had focused on managing costs while investing in AI and new technologies, audit quality and communities, and expanding through a merger with KPMG Switzerland to open new markets and career paths for staff.

For staff in Reading, Watford and other affected commuter-belt offices, the immediate effect will be lower starting and promoted pay ranges compared with the prior year, even as the firm maintains that existing salaries have not been reduced. The changes sit alongside prior pay freezes and targeted layoffs as KPMG rebalances regional reward structures amid softer consulting demand across the Big Four.