Average Salary UK What is the average wage?

Asking someone about their salary is not a question often discussed openly by us Brits, even though speaking to colleagues about it is perfectly legal. So, it’s not surprising that many are unaware of the average salary in the UK. To bring that information out in the open, we at Moneyfarm have done an exercise to increase national awareness in terms of the average monthly salary and average disposable income in the UK, investigating by region, age, education group, and more.

According to the ONS , the average wage in the UK for regular pay in March 2026, was £742 per week, or £38,584 per annum. Total pay in this case includes bonuses.

The annual growth in employees’ average earnings was 3.8% for regular earnings (excluding bonuses) and 3.9% for total earnings (including bonuses). Applying the inflation index in the UK, the annual growth in real terms was 0.5% for regular pay, and 0.7% for total pay.

The largest growth in salaries in the UK has been observed in the public sector, in the wholesaling, retailing, hotels and restaurants sector. We have to remember that in the UK, minimum wage has risen to £12.71/hour in 2026 from £12.21/hour in 2025.

The factors affecting average salary

When answering the question, “What is the national average salary in the UK? – several factors need to be considered. They include

• The average salary in the UK per month according to sector and industry
• Geographic region
• Age group
• Education/qualification
• Gender

Each of these factors is discussed individually below.

Average salaries by sector and industry

Although not as large as in previous months, the difference between the national average salary of the UK private and public sectors still exists.

Annual average regular earnings growth was 5.9% for the public sector. For the private sector, it was lower at 3.3%. It should be noted that the public sector saw wage increases through the end of 2025, which are expected to taper off in 2026.

Let’s see how the average salary has risen, in percentage terms, in the UK across different sectors, with data referring to January 2026

• Private sector 3.3%
• Public sector 5.9%
• Finance and business services 2.2%
• Manufacturing 3.9%
• Construction 1.6%
• Wholesaling, retailing, hotels and restaurants 4.8%

This indirectly gives us an idea of ​​the government policies implemented and the sectors that are the most popular in 2026 in the UK. Paid employees earn in March 2026 £742 per week.

The demand for experienced workers in healthcare, engineering, digital professions, and with skills in artificial intelligence continues to grow. The green economy also continues to require workers.

What is the average salary in the UK by region?

The average salary UK figures referred to above are for full-time employees in the UK as a whole. For information on the average income in the UK by region, you can download an Excel spreadsheet entitled “EARN05” on gross weekly earnings of full-time employees by region from the ONS website.

The average UK salary for October to December 2025 regionally, was topped by London at £1071 per week. The Southeast came next with £872. The lowest average was in the Northern Ireland with £729. The average salary in Scotland was £799.

What is the average salary in the UK by age group?

Average UK salary by age is another important aspect that has an impact on earnings. Take into consideration that median pay in UK is £2,599 per month.

In terms of average annual salary in the UK, it’s noticeable that salaries rise until we reach the 50 to 59 and 60+ year-old groups, after which they fall. There are several reasons for this. Firstly, in their 50s, some people start to reduce their working hours as their homes become child-free. Also, the majority own their homes outright and are more likely to be debt-free. Lastly, those over 60 are more confident of their retirement provision and people who got their financial planning right start taking early retirement.

What is the average salary in the UK by education level?

The level of education and qualification achieved also impacts the size of the average salary in the UK. Here we see an overview for 2024, according to Lingobright.com.

Some jobs (for which a specific qualification or training are required) are more profitable than others in 2026, for example

• Creative Arts £25,000 of annual salary
• Banking and Accountancy £49,000 – £70,000 of annual salary
• Retail Management £23,000 – £30,000 of annual salary
• Computer Science £70,000 in IT, of annual salary
• Engineering £26,000 – £30,000 of annual salary
• Law 50,000 – £100,000 of annual salary

Average Salaries and the Gender Gap

The gender pay gap in the UK is declining in percentage terms, standing at 7.2% in 2026. Some sectors are making the greatest progress, such as the public sector and education, while others still show a significant gender gap, including technology and finance.

The government is calling for greater transparency in reporting the salaries earned by men and women, encouraging companies to promote diversity in leadership roles. These positions have traditionally been held by men, but the government is promoting greater inclusion of women in leadership positions.

The average hourly wage in the UK

The minimum hourly wage in the UK is increasing in 2026

• 18 to 20 years of age £10.85
• 21 years of age and over £12.71
• Under 18 years of age £8
• For apprentices age £8

By 2025 – 2026, around 40–44% of UK workers were in some form of flexible work, including hybrid and fully remote work. In particular, hybrid working has become the most common model, with workers splitting time between home and office or fully remotely.

This increase has been driven by both employee demand and policy changes. The UK government has also strengthened workers’ rights, making it easier to request flexible working from day one of employment and encouraging adoption across industries. Hybrid roles tend to have no negative impact on pay, and in some cases they can even be associated with higher salaries, especially in competitive sectors like tech and finance.

The highest-paying jobs in the UK

The highest-paying jobs in the UK in 2026 are in sectors like business, finance, healthcare, law, and technology. Top roles include

• Chief Executive Officers (CEOs) salaries can start at £65,000 annual
• Investment Bankers from £50,000 to over £600,000
• Medical Specialist from £65,000 to over £90,000
• IT Directors from £95,000 to over £115,500
• Legal Professionals from £50,000 to over £130,000
• Financial Professionals from £60,000 to £250,000

In 2026 also jobs in new technology, such as AI specialists and data scientists, are also becoming very well paid due to high demand and specialised skills. In general, these careers require many years of study, experience, and responsibility, but they offer excellent financial rewards and strong career growth opportunities.

Comparison of the UK Average Salary with Other Countries

The average salary in the UK per year, paid in euros, is €38,584 (£38,584). The cost of living in Europe is measured using an index of 58.2, while in London, for example, it is 87.5.

The table below shows the average annual salary in countries across Europe.

The figures in the table above are based on Eurosalary’s data from Q1 2026.

Average household income in the UK

The average salary in the UK refers to the amount earned by an individual in a given time period. In contrast, household income in the UK refers to the total income earned by all members of a household in that same period. The desire to invest and the ability to learn how to invest depend initially on your household income.

There is no official data yet on the average household income in the UK for 2026, but it should be noted that this figure is calculated as the total income of all members of a household.

Knowing your disposable household income (“disposable” indicating the sum after direct taxes have been deducted), allows you to ask yourself

• Why do you want to invest?
• What is your risk tolerance?
• How much can you afford to invest?
• When do you want to be able to access your invested funds?

If, after answering these questions, you still wish to invest, you need to do some further research. You’ll find plenty of information on the financial planning page of the Moneyfarm.com website.

You might be tempted by some of the high-return investments in the UK. However, you need to be aware that although all investments carry some risk, those offering high returns usually have a higher risk factor.

Investment opportunities for increasing income

One way of investing for income is via stocks and shares. They are traded on stock exchanges worldwide and in indices like the UK’s FTSE 100 and USA’s S&P 500, and many pay monthly dividends.

As we’ve already mentioned, investing of any kind involves risk. If you are not familiar with how stock markets work or how to trade stocks and shares, seek financial advice.

Other investment opportunities for increasing your income include real estate, corporate and government bonds, and ETFs.

Regarding individual stocks and shares ISAs, choosing the best ISA for you depends on your financial circumstances. There are five from which you can choose

• Cash ISA
• Innovative Finance ISA
• Junior ISA
• Lifetime ISA
• Stocks and shares ISA

If you want to learn more about each of the five options, you’ll find a blog entitled “Types of ISAs” on the Moneyfarm website, which contains lots of helpful information.

If you are considering opening a stocks and shares ISA, you can choose from various tailored or personalised portfolios according to your risk tolerance. These portfolios carry a diverse range of shares in different companies and market sectors, and as such, this diversity helps to reduce risk. But remember – the higher the predicted return, the higher the risk.

Historical Trends in Average Salary in the UK

Understanding the historical trends in average salary provides valuable insights into a region’s economic development and labour market dynamics. In the context of the United Kingdom, the average salary has witnessed significant fluctuations over the past few decades. Factors such as inflation, government policies, industrial growth, and global economic conditions have played a crucial role in shaping these trends.

During the late 20th century, the average salary saw steady growth, reflecting the country’s economic prosperity. However, events like the financial crisis of 2008 led to stagnation and even decline in some sectors. Recent years have shown a gradual recovery, with the technology and finance sectors leading the way. The analysis of historical trends in average salary in the UK helps policymakers, economists, and businesses with strategic planning and decision-making.

Even though salaries in the UK are still rising in 2026, trends show a slowdown due to several factors, including a decrease in job opportunities and an uncertain international context, which leads companies to take a more cautious approach to hiring.

What is the average salary in the UK for the self-employed?

According to Glassdoor, the average salary UK self-employed people earn in the UK is £45,000. Here some of the best profitable self-employed jobs in the UK

• Senior Software Architect in Cybersecurity from £75,000 to £125,000
• AI Implementation specialist from £50,000 to £105,000
• Fractional CMO / Growth Lead from £60,000 to £95,000
• Specialised solicitor from £55,000 to £90,000
• Sustainability and Net-Zero auditor from £45,000 to £78,000
• Thought Leadership Strategist from £40,000 to £65,000
• Specialised Online Therapist from £30,000 to £75,000
• Ecommerce Retention Specialist from £38,000 to £58,000
• High-end Dog Behaviourist from £37,000 to £67,000

Being self-employed has its attractions, including being your own boss and not having to answer to others, and flexible hours, which can be useful for balancing work hours and family commitments. However, being self-employed does have its challenges and disadvantages too.

The stress levels can be high as you alone are responsible for your success in gaining and maintaining clients and earning a sufficient income.

When you are in full employment, you will likely be given paid holidays and sick pay. You do not have that luxury when you are self-employed. If you don’t work, you don’t get paid.

Handling the necessary administration requirements can also be challenging. You either have to do your own accounting, including tax returns and making your NI contributions, or you have to hire someone else to do it for you, which can be costly.

However, there is a little bit of good news for the self-employed, because as of April 6, 2024, Class 4 NI contributions have been reduced from 9% to 8%. This will be key when it comes to securing the state pension.

How inflation affects the purchasing power of the average salary in the UK

Inflation reduces the purchasing power of the average salary in the UK, because prices for goods and services rise over time. This means that even if wages increase, people may not actually be able to buy more if their income does not grow at the same rate as inflation.

In recent years, the UK has experienced periods of high inflation, which has put pressure on households by increasing the cost of essentials such as food, energy, and housing. As a result, many people have seen a decline in their real income, even if their nominal salary has gone up. In 2026, inflation in the UK is around 3.3%.

Tax-Efficient Savings and Investments

As the pressure on household income begins to lessen, people start thinking about the possibility of investing for the future. But given the concerns and fears that the memory of recent rocketing inflation stirs, it’s important to pick an investment vehicle that can outpace inflation in the long term.

ISAs of any kind are tax wrappers, and the stocks and shares ISA is the one that promises the best returns, albeit with an increased risk factor. Any returns or growth your investment undergoes are tax-free, as are any withdrawals. The annual ISA investment allowance is £20,000, spread across all types.

FAQ

How do salaries work in the UK?

Salaries in the UK are usually expressed as an annual amount, which is paid weekly, bi-weekly or monthly. Income tax and National Insurance (NI) contributions are deducted from salary by the employer before it is paid to the employee. The amount of tax and National Insurance deducted depends on the employee’s earnings and their tax code.

In addition, many employers also offer benefits such as pensions, health insurance, and paid vacation time. The minimum wage in the UK varies depending on the employee’s age and whether they are an apprentice.

How is the average salary calculated in the UK?

The average salary in the UK is usually calculated by adding up the total earnings of all workers in a particular category or industry and then dividing that by the total number of workers.

What is the average salary in the UK?

The average UK salary in terms of total earnings is estimated to be £682 (£35,464 per annum), and £637 (£33,124 per annum) for regular earnings.

What is the minimum wage in the UK?

In 2026 it is £10.85 for people from 18 to 20 years of age, £12.71 for workers from 21 years of age and over, and £8 for workers under 18 years old or apprentices age.

Why do salaries vary across the UK?
Salaries differ across the UK mainly because of regional economic strength, demand for skills and cost of living. For example, London generally offers higher wages than other regions, but it also has a higher cost of living.

How often do salaries increase in the UK?
Salary increases in the UK are not fixed and depend on employers, industries, and economic conditions. Many workers receive annual reviews, but increases are not guaranteed and may vary significantly. It also depends on the government’s choices.

Which sectors are expected to grow in terms of salary in the future?
Sectors such as technology, healthcare, renewable energy, and finance are expected to continue growing in 2026. These industries may offer higher salaries due to increasing demand for specialised skills.