How to Find Average Salary Information for UK Workers

How to Find Average Salary Information for UK Workers

How to Find Average Salary Information for UK Workers

Updated 27 September 2021

Written by Amy Dawson
Amy Dawson

We all like to think that we’re paid what we’re worth, but the truth is that for many of us here in the UK, it can be difficult to know if we are receiving the average salary for the work that we do.

Although we have effective minimum and living wage legislation that protects workers from being exploited, it is a fact that not everyone is paid a comparable wage.

They may be doing the same job in the same company, but if your job role isn’t paid on a sliding scale, it can be difficult to know if you are being paid appropriately.

The reluctance to talk about salary expectations and a fear of talking openly and honestly about financial matters means that many workers may be unaware of what their peers may be earning.

There may be many reasons for discrepancies in salary terms; educational attainment, location, industry and experience are just some of the reasons for wage differences.

Of course, some employers, such as the NHS (which is the UK’s largest employer) publish clear and transparent salary expectations using a unique banding system. This provides salary brackets depending on the employee’s level of expertise and experience.

It’s important to note that salary expectations differ enormously depending on whether you are employed by the public sector (for example, government/state jobs) or the private sector. There are also huge differences between the employed and the self-employed.

This means that it’s increasingly difficult to ascertain for certain what the average salary is in the UK.

However, in this article, we’ll use the information published by the Office for National Statistics (ONS) to provide an accurate overview of what the average UK salary is in 2021.

How Much Does the Average Brit Earn?

For the tax year ending 05 April 2020, the median annual salary for full-time employees in the UK was £31,461.

This represents the workforce from 06 April 2019-05 April 2020.

As an average income, it represents the middle value – there will be a considerable number of UK residents earning far greater salaries as well as a significant proportion earning much less.

Many different factors could impact the average salary in the UK. Although legislation is in place to protect UK employees from discrimination (such as minimum/living wages), there is still a wide range of social issues that can impact your earning potential:

Age

In the UK, the highest earners are typically men aged between 40-49.

This is because they are likely to have gained considerable working experience and are at the peak of their full-time earning potential.

Those aged under 21 typically earn the least.

This could be because a significant proportion of those aged 16-21 will be in some form of education. As such, they will likely only be working limited hours.

It’s also important to note that the minimum wage requirements are lower for employers under the age of 21.

Ethnicity

The UK is a multicultural society, and much work is being done to reduce any ethnic pay gaps.

'Most of the minority ethnic groups analysed continue to earn less than White British employees but, in 2019, those in the Chinese, White Irish, White and Asian, and Indian ethnic groups all earned higher hourly pay than White British employees'

(Source: ONS)

Ethnicity pay gaps can differ across the UK; this may depend on the type of work available within that area.

For example, those living in large cities such as London may have access to better educational opportunities as well as a broader selection of industries.

In contrast, those living in smaller areas in the Midlands/the North of England may rely on manual or factory work which is paid less.

Gender

The UK government recognises that many women are paid proportionally less than their male counterparts.

This is often because women have traditionally taken career breaks to have children/look after family members. As a result, women have often noted that their careers and their earning potential have been affected.

To overcome this, the UK government has introduced Shared Parental Leave (SPL).

This means that new parents or adoptive parents can take up to 50 weeks of leave (37 weeks paid) in a bid to share parental responsibilities.

Reducing the gender pay gap is also a priority. Organisations with more than 250 employees are legally required to publish annual reports detailing their gender pay gaps.

Location

The UK is densely populated and, as a result, your choice of location may have a significant impact on your earning potential.

Much of the UK’s economy is based in London, and many people choose to work in the capital in a bid to earn more money. However, it should be noted that the higher living costs/commuting costs may outweigh the higher salaries.

There are also clear sector-specific locations across the UK. For instance, much of the UK’s media is now produced in the North West, in Manchester.

The Midlands is known for its manufacturing capabilities.

Rural locations, such as Cornwall or East Anglia, may have limited career opportunities which could result in lower average salaries.

Educational Attainment

Your level of education will impact your salary opportunities.

Those with a degree will be more likely to earn far more than those with just GCSE or A-Level qualifications.

However, many employers advocate for experience above results. They will be actively looking for those who have taken the initiative to gain relevant work experience, undertake voluntary roles or sign up for work-based opportunities to enhance their CV.

There are many initiatives in place (such as The Prince’s Trust, which was established by HRH Prince Charles) that set out to ensure equal access to job roles, regardless of your background or educational success.

Public Sector vs Private Sector

There are significant pay gaps between comparable roles within the public and private sectors.

Public sector employees typically work for organisations such as local councils, schools or the NHS.

As government employees, they benefit from exceptional benefits such as high pension contributions and/or a generous holiday entitlement, as well as comprehensive sick leave.

In contrast, a private sector employee may be paid a greater financial value but will likely only have a statutory entitlement to benefits such as pensions, sick leave and holiday entitlement.

Average Salary Information for UK Workers
Average Salary Information for UK Workers

Employed vs Self Employed

There are also significant differences in the salaries of employed and self-employed workforces.

Those who are employed will have access to statutory benefits such as maternity or shared parental leave, holiday pay, sick leave, and pensions. Employed workers do not need to worry about their tax as this is taken care of by their employer.

The self-employed workforce can set their own wage requirements, but they are responsible for all outgoings as well as their tax payments.

Self-employed workers often charge more than employed workers to cover the shortfall as they may not be entitled to the same statutory provision as their employed peers.

On 06 April 2021, the UK minimum wage will increase.

The minimum wage differs depending on your age.

  • Age 23 or over (national living wage rate): £8.91 (up 2.2% from £8.72)
  • Age 21 to 22: £8.36 (up 2% from £8.20)
  • Age 18 to 20: £6.56 (up 1.7% from£ 6.45)
  • Age 16 to 17: £4.62 (up 1.5% from £4.55)
  • Apprentice rate: £4.30 (up 3.6% from £4.15)

From April 2021, the national living wage will apply to anyone over the age of 23. Previously it was only for those aged 25+.

What’s the Difference Between Minimum Wage and Living Wage?

The minimum wage is the minimum amount that an employer is legally allowed to pay you.

The national living wage is slightly higher; it’s deemed the amount of money needed for an employee to be able to have an acceptable standard of living.

In the UK, many large employers such as Aviva, Ikea, Nestle, Nationwide and KPMG have been certified as paying their employees a fair and generous salary.

How UK Salaries Compare Across Different Subgroups

To help establish the average UK salaries, we’ve broken them down per subgroup.

All statistics have been provided by the latest releases published by the Office for National Statistics.

What Is the Weekly Average Salary by Gender in the UK?

The weekly median salary for all employees in the UK in 2020 is £479.10.

For men, this rises to a median salary of £570.90, and for women, it’s significantly lower, at £397.70.

What Is the Weekly Average Salary by Age in the UK?

The annual estimates of paid hours published by the ONS show a huge difference in the average weekly salaries for employees in the UK.

The table below shows a breakdown of how this differs between age as well as gender.

How to Find Average Salary Information for UK Workers
How to Find Average Salary Information for UK Workers
How to Find Average Salary Information for UK Workers
How to Find Average Salary Information for UK Workers
How to Find Average Salary Information for UK Workers