UK Average Salary Guide 2024: Comprehensive Breakdown by Profession, Region, and More

Did you know that the average UK salary can vary by over £20,000 depending on the profession and location?

Whether you’re a job seeker looking for your next move, an employee thinking of changing, or an employer wanting to offer competitive pay, you need to understand salary trends to make informed career and business decisions.

This guide will cover average salaries across the UK, including national averages, historical trends, and breakdowns by job, industry, and region. We’ll also examine the factors that affect salary and their practical applications for career progression and hiring strategy.

By the end, you'll be able to use this information to negotiate better for jobs or keep your company competitive for top talent.

National Overview

The UK’s average salary data provides valuable insights into the country’s economic health and living standards. The annual pre-tax salary figures give a clear picture of earnings before any deductions. 

Let’s look at the current state of UK average salaries and how they’ve evolved in recent years.

What is the Current UK Average Salary?

According to Indeed, the mean (average) salary in the UK stands at £42,210 per year for full-time employees (£35,404 when all workers are included). This figure represents the sum of all salaries divided by the number of workers, which gives us a broad overview of average income across the country.

However, it’s also good to know the median average salary for full-time workers, which currently sits at £34,963 per year. The median represents the middle point of all salaries, with half of workers earning above this figure and half earning below. This measure is often considered a more accurate representation of typical earnings, as it's less influenced by very high earners or low salaries.

It's worth noting that the average UK salary for full-time workers can vary based on location, industry, and experience level. For instance, salaries in London and the South East tend to be higher than the national average, reflecting the higher cost of living in these areas.

What is the National Living Wage in the UK?

As of April 1, 2024, the UK's National Living Wage (NLW) is £11.44 per hour. This rate applies to all workers aged 21 and over. The National Living Wage differs from the National Minimum Wage (NMW), which applies to younger workers and apprentices. Here are the current rates:

• 21 and over: £11.44 per hour
• 18 to 20: £8.60 per hour
• Under 18: £6.40 per hour
• Apprentice: £6.40 per hour (for those under 19 or in the first year of their apprenticeship).

The NLW is set by the government and is legally binding, ensuring that employers pay their workers at least this amount. It is reviewed and adjusted annually based on recommendations from the Low Pay Commission to reflect changes in the cost of living and other economic factors.

Historical Trends

As reported by the latest government data at the Office for National Statistics, over the past five years, UK employee earnings have shown a general upward trend:

1. Steady Growth: From 2019 to early 2023, average salaries increased consistently year over year, reflecting a relatively stable economic environment.
2. Pandemic Impact: The COVID-19 pandemic initially caused some stagnation in the average weekly earnings in 2020, particularly in sectors heavily affected by lockdowns. However, many industries quickly rebounded.
3. Recent Acceleration: In the past year, salary growth has accelerated, driven by factors such as labor shortages in certain sectors and the need to keep pace with rising inflation.
4. Public vs. Private Sector: Public sector salaries have generally seen slower growth compared to the private sector, though this gap has narrowed in recent months.
5. Regional Variations: While some regions have seen median salary increases, the rate of growth has been uneven, with London and South East England consistently outpacing other areas, such as the North West and South West of England.

Note that while nominal salaries have increased, real wages (adjusted for inflation) have not necessarily kept up, especially in the face of recent high inflation rates. This means that despite higher pay, many full-time workers may not have seen a significant increase in their purchasing power.

These average UK salary trends should be considered alongside changes in the cost of living, employment rates, and patterns of economic growth, as these factors combined provide a more complete picture of the financial well-being of UK workers.

Salary by Profession

Understanding salary ranges across different professions can help job seekers and professionals make informed career decisions. We’ll look at the highest average salaries, lowest average salaries, and industry sectors with a rapidly growing average salary rate. 

Top 20 Highest-Paying Professions

These are the jobs with the highest average income in the UK:

1. Chief Executive Officer (CEO): £113,577
2. Investment Banker: £62,000 - £122,000
3. Medical Practitioner: £64,504
4. IT Director: £91,810
5. Marketing and Sales Director: £87,050
6. Legal Professional: £76,522
7. Financial Manager/Director: £64,384
8. Airline Pilot: £75,000 - £90,000
9. Actuary: £60,020
10. Dentist: £70,000
11. High Court Judge: £198,000
12. Anaesthesiologist: £65,000 - £98,113
13. Dermatologist: £69,209 - £99,066
14. Human Resources Director: £71,248 - £77,934
15. Broker: £66,813
16. Senior Professional in Educational Establishments: £59,841
17. Train and Tram Driver: £59,198
18. Product Manager: £49,550 - £58,000
19. Software Developer: £31,095 - £45,667
20. Business Analyst: £31,429 - £40,000

Lowest-Paying Professions

These jobs tend to have lower average UK annual salary ranges:

1. Bar Staff: £22,425 per year 
2. Care Escorts: £23,289 per year 
3. Playworkers: £24,186 per year 
4. Beauticians: £24,877 per year 
5. Hairdressers and Barbers: £25,324 per year 
6. Waiters and Waitresses: £23,758 per year 
7. Kitchen and Catering Assistants: £21,548 per year 
8. Retail Cashiers and Check-out Operators: £20,369 per year 

These figures highlight the importance of the national minimum wage in ensuring fair pay for low-income workers.

Sources: [Talent, PayScale, Indeed, Reed]

Fastest-Growing Salaries by Sector

Several sectors are experiencing rapid salary growth due to increased demand and skill shortages:

1. Technology: The tech industry continues to thrive, with roles like data scientists, machine learning engineers, and cybersecurity specialists seeing significant salary increases. For example, senior software engineers earn an average of £67,494.
2. Healthcare: The healthcare sector has seen strong salary growth, particularly for specialized roles. For instance, the NHS pay deal in 2023 led to substantial increases for many healthcare workers.
3. Finance and Business Services: This sector has shown the strongest regular pay growth at 9.4%, the highest outside of the pandemic period.
4. Manufacturing: The manufacturing sector has seen an 8.2% growth in regular pay, the highest since comparable records began in 2001.
5. Sustainability: Roles related to sustainability and renewable energy are attracting a higher salary due to increased focus on environmental issues.
6. Artificial Intelligence: As AI becomes more prevalent, professionals in this field command higher salaries.

Note that salaries can vary based on experience, location, and specific employer. The job market and salary trends can also change over time, so consult the most recent data if you are making big hiring or career decisions.

Regional Salary Differences

The UK has significant variations in average UK salaries across its regions. This reflects the different economic landscapes and living costs of the areas of the UK.

Top 5 Highest-Paying Regions

1. London: £44,370
2. South East England: £36,560
3. East of England: £34,833
4. Scotland: £35,518
5. South West England: £33,450

Source: The Times, ONS

London consistently tops the list as the highest-paying region in the UK, with an average salary that is higher than other areas. This is primarily due to the concentration of higher-salary industries such as finance, technology, and professional services in the capital.

The South East of England, which includes affluent counties like Surrey, Berkshire, and Oxfordshire, comes in second. This region benefits from its proximity to London and hosts many technology and research-based companies, particularly around the “M4 corridor”.

These regions consistently report the highest average earnings in the UK.

London vs. Rest of UK Comparison

The disparity between London and other UK regions is stark. The average salary in London (£44,370) is about 27% higher than the UK average of £34,963. This gap widens even further when compared to the lowest-paying regions:

• London vs. North East England: 42% higher (North East average: £31,200)
• London vs. Wales: 59% higher (Wales average: £27,852)
• London vs. Northern Ireland: 58% higher (Northern Ireland average: £28,000 approx.)

However, the higher cost of living in London should always be considered when interpreting these figures. Housing costs, in particular, are higher in the capital. For instance, the average house price in London in 2024 was around £523,000, compared to the UK average of £264,900.

The "London weighting,” an additional pay to compensate for higher living costs, is a common practice among employers. This typically ranges from £2,000 to £6,000 per year, although it can be higher for some professions.

It's worth noting that while London salaries are higher on average, they also show the most considerable disparity between high earners and low earners. According to The Equality Trust, in recent years, the wealthiest 1% earned nearly 15 times more than the poorest 1% in London, compared to 8-10 times in most other regions.

These regional differences highlight the importance of considering location when evaluating job offers or planning career moves within the UK. While higher salaries in London may seem attractive, remember to factor in the increased living costs and potential impact on quality of life.

Factors Affecting Salaries

Of course, many factors influence typical pay rates in the UK. Let's examine the factors that affect the annual salary across different sectors and demographics.

Education Level Impact

Generally, higher levels of education correlate with increased earning potential:

• Workers with upper secondary attainment in the UK earned 23% more than those with below upper secondary attainment.
• Those with tertiary attainment earned 54% more than those below upper secondary.
• The average salary for employees with a degree or equivalent qualification is higher than those without. For instance, in 2020, graduates earned an average of £35,000 per year compared to £25,500 for non-graduates.

However, please note that the value of education can vary by field. Some vocational qualifications and apprenticeships can lead to high-paying careers, particularly in technical fields.

Experience and Age Correlations

Experience and age group are closely linked to annual salary progression:

• The average annual income for employees with less than one year of experience is £20,404, compared to £39,199 for those with 20+ years of experience.
• Salary growth is typically most rapid in the early stages of a career, particularly in the 20s and early 30s.
• By age 40, many workers reach their peak earning potential, though this can vary by industry and profession.

The relationship between age group and salary is not always linear. In some industries, particularly those related to technology, younger workers with up-to-date skills may command higher salaries than older counterparts.

Public vs. Private Sector Differences

The comparison between public and private sector salaries in the UK has shifted over time. Here are some statistics from the Institute for Fiscal Studies (IFS) and the National Audit Office (NAO):

• In 2016, public sector workers earned 1% less per hour, on average, than private sector workers with equivalent characteristics.
• However, in 2016, public sector workers earned 13% more per hour than those in the private sector when not accounting for worker characteristics.
• The public sector workforce has become more skilled over time, with the proportion of high-skilled jobs increasing from 45.7% in 2004 to 47.6% in 2017.

It's worth noting that public sector jobs often come with additional benefits, such as more comprehensive pension provisions, which may not be reflected in direct salary comparisons.

Industry-Specific Average Salary UK Guides

Different industries in the UK offer varying salary ranges based on the roles and responsibilities within each sector. Let's look at the average salaries for key technology, finance, healthcare, education, and retail roles.

Technology: Average Salaries for IT Roles

The technology sector in the UK is known for its competitive salaries, reflecting the high demand for skilled professionals:

Finance: Salaries in Banking, Finance, and Insurance

The finance sector offers lucrative salaries, particularly for roles that require specialized skills and experience. 

Healthcare: Earnings for Healthcare Professionals

Healthcare professionals in the UK earn salaries that reflect their role in society:

Education: Salaries for Teaching Professionals

Salaries in the education sector vary based on the level of education and location:

Retail: Average Earnings in Retail Careers

The retail sector offers a range of salaries depending on the role and responsibilities:

Sources: Reed.co.uk, Glassdoor, Talent.com

Future Outlook

As we look toward the future, understanding projected salary trends and identifying industries poised for growth can provide valuable financial planning insights for job seekers and employers. Let's look at the expected average UK salary projections for 2025 and beyond.

Projected Salary Trends for 2025

The salary outlook for 2025 in the UK is shaped by many economic factors, technological advancements, and shifting workforce dynamics:

1. Overall Salary Growth: The Office for Budget Responsibility (OBR) forecasts average earnings growth of 3.6% in 2025, indicating a positive trend in salary increases.
2. Inflation Considerations: While salaries are expected to rise, both job seekers and employers need to think about the impact of inflation. The Bank of England aims to keep inflation at 2%, which could affect real wage growth.
3. Remote Work Impact: The continued prevalence of remote and hybrid work models may influence salary structures, potentially leading to location-based pay adjustments.
4. Skills-Based Pay: There's an increasing trend towards skills-based pay, where salaries are more closely tied to specific skills rather than traditional job titles or years of experience.
5. Gig Economy Influence: The growing gig economy may impact traditional salary structures, with more workers opting for flexible, project-based compensation models.

Please note that unforeseen economic events or policy changes can influence these projections, so they should be viewed as general trends rather than definitive predictions.

Industries Expected to See the Highest Growth

Several industries are positioned for average salary growth due to increasing demand, technological advancements, and evolving societal needs:

1. Technology and Digital:

• Artificial Intelligence and Machine Learning specialists could see salary increases of up to 25% by 2025.
• Cybersecurity professionals will likely experience continued high demand, with potential salary growth of 15-20%.

2. Healthcare and Life Sciences:

• The ongoing focus on healthcare, accelerated by the pandemic, suggests continued salary growth in this sector.
• Biotechnology roles, particularly those related to vaccine development and personalized medicine, may see salary increases of 10-15%.

3. Green Energy and Sustainability:

As the UK pushes towards its net-zero carbon emissions goal, salaries for roles in renewable energy and sustainability could grow by 12-18%.

• Environmental consultants and sustainability managers may experience increased demand and corresponding salary boosts.

4. Data Analytics and Business Intelligence:

• As data becomes more a part of business decision-making, data scientists and analysts could see salary increases of 15-20%.

5. Financial Technology (FinTech):

• The rapidly evolving FinTech sector will likely offer competitive salaries, with potential growth of 10-15% for specialized roles.

6. E-commerce and Digital Marketing:

• As online shopping grows, e-commerce specialists and digital marketers may see 8-12% salary increases.

7. Education Technology (EdTech):

• The shift towards online and hybrid learning models could drive salary growth of 10-15% in the EdTech sector.

It's worth noting that while these industries are expected to see high growth, individual salary increases will depend on factors such as specific roles, experience levels, and company performance.

Source: ITPro, SalaryExplorer, Indeed

Stay Ahead in a Dynamic Job Market

In this competitive job market, staying ahead means being informed. 

This guide's insights on the average UK salary and median earnings will give employees and employers the knowledge to make strategic decisions about their careers and businesses. 

For employees, this means negotiating better pay and planning strategic career moves. For employers, it’s about offering competitive salaries to attract and retain top talent. 

Knit People’s comprehensive EOR solutions can help you achieve these goals. Start your trial today!

Disclaimer: The content of this article is intended solely for informational purposes. It is advised to consult with a qualified professional before making any contractual commitments. Any decisions made or actions taken based on the information provided herein are at the sole discretion and responsibility of the reader.