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What Is the Average Salary in the UK?

Tobi Opeyemi Amure
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What Is the Average Salary in the UK?

Salaries across the United Kingdom vary substantially depending on your industry, location, age, education, and other factors.

Understanding what impacts your earning potential can help you negotiate a fairer wage or find a higher-paying role.

This article explores the key influences on UK salaries and provides actionable tips to boost your income.

So, in a nutshell, what Is the average salary in the UK? According to ONS data, the average salary in the UK is £32,000 per year. This figure can vary based on profession, region, and other factors. It’s important to consider the regional cost of living differences when evaluating this income level.

What Is the Average UK Salary?

The average salary in the UK is approximately £32,000 per year for full-time employees, according to the most recent data from the Office for National Statistics. This translates to around £2,099 per month.

However, looking beyond just the mean average salary also provides helpful context:

  • The median average weekly full-time wage in the UK is £640 (gross) This midpoint value means half of people earn less than this amount.
  • The average salary in London is significantly higher at around £37,500 annually. But the costs of living are also much higher.
  • Salaries for the top 10% highest earners exceed £100,000 per year. The top 1% make over £150,000 annually.
  • The bottom 10% of earners make less than £17,000 annually. This highlights large income disparities.
  • Women’s average salary is around £29,684 versus £35,260 for men1. Closing the gender pay gap remains a key issue.
  • Average salaries in Scotland, Wales and Northern Ireland range from £2,000-£5,000 less than in England annually. Regional variances exist.

Overall, while £32,000 serves as a reasonable benchmark for average UK earnings, actual incomes vary greatly based on location, sector, role seniority, qualifications, experience and demographic factors.

Understanding different segment averages provides a clearer salary picture.

Top Paying Industries in the UK

Certain sectors and industries in the UK tend to offer higher salaries on average compared to others.

Some of the top-paying industries include:

Finance and Insurance

The finance industry including banking, investment firms, accounting, and insurance provides some of the highest salaries at an average of around £52,500. Roles in high finance like trading or investment banking can earn well above £100,000.

Energy and Utilities

Professionals working in the oil, gas, electric and water utility sectors earn an average of approximately £42,500 annually. Engineering and technical roles tend to pay the highest.

Information Technology

IT earns an average salary matching the finance industry at £52,500 per year. Software engineering, cybersecurity, database management, and other tech occupations are in high demand.

Law

Legal sector workers earn above average at around £45,000 annually on average. Private practice lawyers earn significantly more than those in public service roles. Barristers and partners take home over £100,000.

Pharmaceuticals

Professionals in medical and drug research and manufacturing earn around £40,000 annually on average. Scientists and executives earn the top paychecks.

Aerospace and Defense

Engineers and technical experts working in aviation and defense average approximately £39,000. Pilots and upper management draw over £100,000 in salary.

While not definitive for any specific role, these sectors broadly offer the highest pay levels in the UK at present based on average salaries. Roles, seniority, location, qualifications, and field specialty all impact actual earning potential.

What Are the Top-Paying Jobs in the UK?

While salaries can vary widely based on location, experience, and other factors, here are some of the highest-paying professional roles in the UK at present:

Investment Banker

Investment bankers who provide services like mergers and acquisitions, IPOs, and investment advice earn over £100,000 on average, with managing directors earning up to £300,000 or more.

Corporate Lawyer

Partners at top UK law firms bring in salaries upwards of £150,000, while junior lawyers start around £80,000 with significant billing bonuses. In-house attorneys at banks earn around £100,000.

Software Engineer

Software engineers and developers at tech companies or in financial services earn around £60,000 to start, with lead engineers making up to £130,000 at top firms.

Management Consultant

Strategy consultants at firms like McKinsey, Bain and Boston Consulting Group earn salaries ranging from £60,000 to £180,000 for partners. Bonuses can match base.

Investment Manager

Portfolio managers and investment analysts at asset management firms and hedge funds can earn anywhere from £80,000 up to £250,000 in total compensation.

Tax Accountant

Accountants specialising in helping corporations and high net worth clients minimise taxes generate salaries from £80,000 up to £200,000 once they reach partner level.

Actuary

Actuaries who assess financial risk and uncertainty command £55,000 to start and over £100,000 at the fellow or executive level. Bonuses are common.

These lucrative roles currently sit among the top tier of highest-paying professions in the UK, with the potential for substantial earnings growth over time. Some like medicine and aviation also rank highly for top pay potential.

How Does Education, Age & Other Factors Affect Salary?

Several key factors impact how much you can expect to earn in the UK job market:

Education Level

Higher degrees strongly correlate to higher pay. Workers with a bachelor’s degree earn £34,500 on average versus £18,600 for those with just secondary education.

Master’s degrees add around £7,500 and doctorates £12,000 more on top of bachelor’s pay.

Age and Experience

Salaries typically rise steadily from ages 18 to 40 as workers gain skills and move up the career ladder. Pay peaks between ages 40-49, with an average salary of £36,500.

Earnings gradually decline from age 50 onwards as workers approach retirement.

Industry and Role

Your chosen field and position significantly sway your salary. Software developers (£52,500) out-earn teachers (£30,000). Law partners (£150,000+) exceed entry-level legal assistants (£25,000).

Location

Where you work impacts pay. London salaries (£52,500) are roughly £15,000 above the national average. Economically vibrant southeast regions also pay more. Remote areas lag.

Company Size

Larger companies tend to pay more than small businesses, especially global corporations. For example, an accountant at a Big 4 firm earns 50-100% more than at a local practice.

Specialised Skills

Bonus pay is common in many fields for in-demand skills like a second language, programming expertise, regulatory certifications or cutting-edge technical know-how.

Negotiation Ability

Salary negotiation prowess makes a difference, especially when changing jobs. Good negotiators routinely earn 10-20% more over a career.

These are some of the major factors that influence how much you earn. Education, experience, rare skills, and location offer the most potential salary upside.

Here is an overview of how the average (mean) full-time annual salary in the UK has evolved over the past decade:

Statistic: Median annual earnings for full-time employees in the United Kingdom from 1999 to 2022 (in GBP) | Statista
Find more statistics at Statista

Over the past 10 years, the average salary has increased steadily, rising approximately £12,100 or 45%.

The largest jump has occurred in the past two years, with average pay increasing £4,400 from 2020 to 2022.

This spike is due to rising inflation, greater competition for talent amid labor shortages, and workers seeking higher salaries after the pandemic.

While the mean salary has trended upward, income inequality has also widened over the past decade. Top earners have seen disproportionate pay gains compared to those at the middle and lower end of the pay scale.

Understanding how average wages have changed both short term and historically provides helpful context when negotiating a fair, competitive salary aligned to today’s job market. Comparing against industry-specific trends is also useful.

Examining the Gender Pay Gap

Despite progress over the decades, a significant gap between men’s and women’s earnings persists in the UK today:

  • The median salary for full-time male employees is currently around £36,700 annually.
  • For full-time female employees, the median salary is approximately £31,000 annually.
  • This translates to a gender pay gap of 15.6% for median hourly earnings.

While the gap has narrowed over time, progress has stalled recently. The gender divide stems from a mix of factors:

  • Women remain underrepresented in high-paying fields like technology and finance.
  • Women are more likely to sacrifice career advancement for child rearing and familial responsibilities.
  • Promotions and leadership roles disproportionately go to men.
  • Outright pay discrimination, while illegal, contributes as well.

Closing the gender pay divide represents an ongoing priority and challenge. Greater pay transparency, hiring and promotion reform, flexible work arrangements, and addressing unconscious bias all play a role in achieving pay equity.

Understanding current trends empowers both women and men to make informed career and salary negotiations. However, more progress is still required for true gender parity in UK earnings.

Researching Role and Industry Salaries

Determining the typical pay range for a given occupation or sector helps provide reasonable salary expectations when changing jobs or negotiating raises. Useful resources include:

Government Data

The Office for National Statistics publishes detailed salary averages annually across hundreds of job titles. This official data offers accurate benchmarks sliced by region, experience level and other variables.

Industry Surveys

Many professional associations like the British Medical Association, Law Society and ICAEW publishcomprehensive compensation surveys for their respective fields annually. These provide key industry pay benchmarks.

Salary Comparison Sites

Websites like Glassdoor, Indeed and TotalJobs allow you to search average salaries self-reported by employees in various roles, companies and locations. Take ranges with a grain of salt but patterns are illuminating.

Recruiters

Specialist recruiters working daily in your profession can offer insightful salary guidance. Be transparent about your experience and skills to get tailored estimates.

Job Listings

The pay bands advertised on current job postings help reveal prevailing market rates for a given position. Aggregate ranges from several openings to identify common figures.

Combining data from multiple authoritative sources allows you to determine realistic, competitive salary targets as you navigate the job market and compensation negotiations.

Remember to account for your precise skills and credentials.

Strategies for Salary Negotiation

When joining a new company or seeking a raise, negotiating your pay effectively and confidently can make a major impact on your long-term earnings. Useful tactics include:

Research Industry Ranges

Benchmark your target against comparable roles using resources like government data, association surveys, job listings, and recruiters. Come armed with prevailing market rates.

Highlight Your Value

Quantify your unique contributions, achievements, specialised skills, advanced credentials and other differentiators to build your case for above-average compensation.

Practice Negotiating

Role-play negotiating scenarios to get comfortable articulating your value proposition. Prepare persuasive responses to counteroffers. Exude self-assurance.

Offer a Win-Win

Frame your desired salary in terms of benefits to the employer like increased productivity, retention and cost savings from rapid ramp-up.

Be Ready to Compromise

Have a range in mind, not just a fixed figure. Consider perks like extra vacation, work-from-home flexibility or performance bonuses if the base salary hits limits.

Get It in Writing

Once a verbal offer is made, request key terms be formally documented in an offer letter before accepting. This locks in the agreed compensation.

With preparation and confidence in conveying your worth, you can securely negotiate a salary that fairly reflects your contributions. Do your homework and leverage job offers for maximum leverage.

Here’s a good video that discusses the average salary in the UK:

Average Salary in the UK – Final Thoughts

What determines your earning potential in the UK job market is a complex interplay of factors like industry, role, location, qualifications, age, skills, and negotiating ability.

While the average UK salary is around £32,000, pay varies widely from under £20,000 to over £100,000 based on your precise circumstances. Certain fields like finance and technology tend to pay the highest salaries.

Generally, higher degrees, rare skills, extensive experience, jobs in economically vibrant areas, and roles at large prestigious companies offer income upside. Salaries also tend to peak between ages 40-50.

Aim to negotiate a salary aligned with prevailing rates for your role and capabilities. Do your research and highlight your value. Be ready to compromise but get any offer formalised in writing.

While money shouldn’t be the only consideration, understanding what determines your earning power allows you to make informed career and compensation decisions to maximise your pay over time.

You may also like:

  1. https://www.statista.com/statistics/802209/full-time-annual-salary-in-the-uk-by-gender/ ↩︎

Will Fenton is the founder of Sterling Savvy. He is a personal finance expert and writes about trading, investing, budgeting, and other financial topics.

Along with his education in Economics & Finance, he has experience working in the financial services industry in London working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”.

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