The wages paid out by the 20 top flight clubs actually rose by 9% on the previous season and further increases are expected, due to an extra £600m of television revenue.
Not surprisingly, the club paying out the most was big-spending Manchester City with players like Carlos Tévez, Yaya Touré and Sergio Agüero adding to last season's wages bill of £202m.
The figures from Deloitte come after Man City blew a whopping £50m in less than 24 hours, as they made moves for new recruits Jesús Navas and Fernandinho.
At the other end of the scale, Swansea City spent 'just' £35m on its wages bill.
The EPL remains the world's wealthiest domestic competition - paying out the most in wages, but also bringing in the most revenue by a significant margin.
Despite operating in a challenging economic environment, English club football's profile, exposure and increasingly global interest have continued to drive revenue growth for the top clubs.
Dan Jones, Deloitte
The EPL's €2.9bn in revenue outstrips the €1.9bn brought in by the second richest league, Germany's Bundesliga. In third, with €1.8bn, is Spain's La Liga.
Italy's Serie A brings in €1.6bn, while France's Ligue 1 sees revenue of €1.1bn.
It's not all good news for the EPL though - revenue may be up 4%, but match attendance is down 2%. The average game last season saw 34,646 people through the gates.
Attendance rates at matches in Germany and Spain were up 5% and 1% respectively, but down in Italy and France by 7% and 4% respectively.
The report also comes as Irish Football Association clubs struggle to fill stands and meet increasing financial demands.
One suggestion has been summer football to improve support.