Deloitte to reimburse Covid pay cuts after better-than-expected results

Profit performance in the first half allow the firm to pay back wages to staff who swallowed pay cuts earlier in the year.

Profit performance in the first half allow the firm to pay back wages to staff who swallowed pay cuts earlier in the year.

Big four accounting firm Deloitte has announced that a better than expected profit performance in the first half will allow the firm to pay back wages to staff who swallowed pay cuts earlier in the year due to the COVID-19 pandemic and impact to the business services company.

Deloitte chief executive Richard Deutsch announced that all staff who accepted the pay variation proposal in April will receive a payment equivalent to six weeks of forgone pay.

Mr Deutsch said: “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.”

The group did not disclose further details on its interim results.

The Deloitte boss said the firm’s continued better-than-planned performance was a testament to its 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.”

In September, Deloitte waved goodbye to four of its partners in its large SAP implementation practice after the executives decided to retire and set up digs at arch rival PwC. But the big accounting firm at the time was confident the loss of the partners should not dent its reputation as the global leader in SAP or its relationship with clients.

PwC poached four of 16 of Deloitte’s partners in the SAP implementation business unit as it builds up its own practice in the wake of recent staff losses to another national accounting firm, EY.

The poaching came as Deloitte brought to an end to a 20 per cent pay cut imposed on staff during the coronavirus pandemic and restored full pay levels from October 1.

The pay cut at the time, announced as the COVID-19 pandemic first emerged, did not apply to people earning less than $65,000 and did not leave anyone with less than $65,000, was similar to other cuts made by the Big Four firms as their consulting work declined rapidly during the lockdown and recession.