Arrium employees in South Australia have accepted a 10 per cent pay cut recommended by the firm's administrator, paving the way forward for the debt-ridden Whyalla steelworks.

The administrator, KordaMentha, was appointed in April as the company struggled with about $4 billion in debt.

The pay cut formed part of the Whyalla Steelworks Enterprise Agreement (EA).

Administrator Mark Mentha said the contribution and sacrifice the employees had agreed to make was valued and appreciated.

"The EA outcomes represent a significant step forward in securing the future of the Whyalla operations," Mr Mentha said.

"A settled, locked-in EA is critical to the sale process; while the proposed pay reduction is equally important, as it will bring the business closer to break-even.

"We also understand the 10 per cent reduction is a big ask for many people, and we appreciate the continued support of the Whyalla community, government agencies and financial institutions in supporting those suffering hardship."

The decision comes weeks after employees rejected the pay deal.