Murphy implemented 10% pay cuts for all staff in April and also reduced holiday entitlements to 21 days.
Chief Executive Officer John Murphy has now written to staff confirming that the cuts will now be reversed.
He said: “I know the changes we put in place were difficult but I strongly believe they were the right steps to take. It has helped us emerge from lockdown on a stable footing.
“Our teams across the company have shown great innovation and ingenuity during these challenge times, and your efforts are very much appreciated.
“We have performed well during challenging times. Most of our projects continued to work safely under new guidelines, with the right levels of support from our functions.
“It is because of those efforts that our financial position is solid and we are in a position to reinstate full salaries for everyone from the start of August as planned.”
Staff will now have an annual holiday allowance of 22 days this year and will have to use four of those over Christmas.
Murphy added: “While many of our peers are taking different steps, we believe this is the right decision.
“It will help us manage our resources and make sure we have our people on site or in the office to safely deliver our projects.
“We still have a challenge to deliver and having hundreds of colleagues taking the same time off would severely harm that.”
The Enquirer understands that some redundancies will take place but numbers will not be above the average turnover of staff while Murphy is now recruiting again on projects like HS2.