The move applies to contract workers in the global banking and markets division and there will be no exceptions, the newspaper reported, without saying where it got the information. Financial analysts and information technology staff will be among those affected, it said.
And HSBC isn't the only firm re-adjusting contract staff pay. Contractor UK reported last month that IT contractors at Bank of America Merrill Lynch face being laid-off unless they agree to do the same work for much less money.
Those who wish to keep their contracts at the bank must cut their rate by 10% from Oct 5th, in addition to taking two weeks' leave by November 6th.
Once these compulsory furloughs are added to the reduction on a typical six-month contract, it equates to a real-term pay cut of almost 20%, one affected contractor told ContractorUK.