What is a Good Salary in the UK? The Average UK Salary in 2024

What is a good salary in the UK? This is a common question for many people who are considering moving to or working in the UK, especially expats from other countries. In this blog post, we will help you understand the average UK salary and median averages in 2023, as well as how they vary by age, region, industry, and education level.

According to the Office for National Statistics, the average UK salary for all employees in 2023 was £29,669, a 6.8% increase from 2022. For full-time workers, the average UK salary in 2023 was £34,963, a 5.8% increase from the previous year. However, these figures do not tell the whole story, as average salaries can be skewed by outliers and do not reflect the distribution of income across the population. A more accurate measure is the median average UK salary, which is the middle point of the income scale, where half of the workers earn more and half earn less. The median average UK salary in 2023 was £24,897 for all employees and £31,461 for full-time workers.

As an expat working in the UK, you may face some challenges, such as visa restrictions, cultural differences, housing problems, and unpleasant weather. However, you may also enjoy some benefits, such as access to the NHS, free education, a diverse and vibrant culture, and opportunities for skilled workers.

I have experience working in a multinational company in the UK, and I earn a good salary that allows me to live comfortably and save for the future. I love the British humour, the pub culture, and the countryside. Of course, there are some things that I miss from home, but I have learned to appreciate the differences and similarities between the two countries.

Moving to the UK? Check our article: London vs New York: Which Is Better For Living

The Average Salary in the UK

The average salary in the UK is a topic that many people are interested in, especially those who are planning to work or live there. According to the national statistics, the UK average salary for all employees in 2023 was £29,669, a 6.8% increase from 2022. For full-time workers, the UK average salary in 2023 was £34,963, a 5.8% increase from the previous year.

However, the UK average salary does not reflect the variations across different regions, industries, and occupations. For example, the median average salary in London was £44,370, the highest among all regions, while the median average salary in the North East was £31,200, the lowest. The North East also had the highest unemployment rate of 7.4% in 2022, compared to the UK average of 4.9%.

As an expat, I think the average salary in the UK is decent, but not enough to afford a comfortable lifestyle in some areas, especially in London. The cost of living, taxes, and inflation are also factors that affect the purchasing power of the UK average salary. Therefore, I would advise anyone who wants to work or live in the UK to do some research on the specific region, industry, and occupation they are interested in, and compare the salaries and living expenses with their expectations and needs.

What is A Good Salary? Is The Average Salary Enough?

One of the most common questions that people ask themselves is: what is a good salary? How much money do I need to earn to live comfortably and enjoy life? Well, a good salary in the UK depends on various factors such as lifestyle, region, and expenses. It is advisable to research the cost of living in your preferred location and compare it with the median salary of your industry to determine a good salary range for yourself.

The average UK salary for all employees in 2023 was £29,669 and £34,963 for full-time employees. A lot of expats and locals are considering them a good salary.

However, these average salaries do not tell the whole story. The cost of living in the UK varies significantly depending on the region and the city. For example, London is the most expensive city in the UK, with a cost of living index of 89.55, followed by Milton Keynes (86.62) and Bath (85.98). This means that living in these cities is much more expensive than the national average, which is 100.

On the other hand, some of the cheapest cities in the UK are Derby (67.81), Slough (68.02) and Aberdeen (69.00). This means that living in these cities is much cheaper than the national average.

Can you move to the UK without a job? Read our article! How To Move To The UK From The US Without A Job?

Factors That Affect The Average Salaries

The average salary in the UK varies widely across industries, jobs, and geographical locations, as well as according to your age and education level. The following factors can affect what is considered a ‘good salary’ in the UK:

Geographic Location

One of the main factors that affect the average salaries in the UK is the geographic location of the workers. The UK average salaries vary significantly across different regions and cities, depending on the cost of living, the demand and supply of labour, and the economic activity of the area.

For example, expect a pay rise if you live in the South East of England. It has the highest average earnings in the UK, at £32,299 per year, while the North East has the lowest, at £25,595 per year. This means that workers in the South East earn about 26% more than workers in the North East, on average. However, this does not necessarily mean that workers in the South East have more money to spend, as they also face higher living expenses, such as housing, transport, and food. Therefore, the average income of a worker does not always reflect their purchasing power or standard of living.

Before you accept a job offer in the UK, it’s essential to know the current cost of living. Read it in our guide.

Job Role

Another factor that affects the average salaries in the UK is the job role of the workers. Different occupations have different levels of skill, education, experience, and responsibility, which influence the amount of pay they receive. Generally, the highest paid jobs in the UK are those that require high levels of expertise, such as managers, professionals, and senior officials, who earn an average of £41,966 per year.

On the other hand, the lowest paid jobs require low levels of skill, such as sales and customer service, elementary, and process, plant, and machine operatives, who earn an average of £19,344 per year. This means that workers in the highest paid jobs earn more than twice as much as workers in the national minimum wage or lowest paid jobs, on average. However, this does not necessarily mean that workers in the highest paid jobs are more satisfied or happier than workers in the lowest paid jobs, as they also face higher levels of stress, pressure, and competition.

Check out our article about Top Most Common Jobs in the UK to make sure that you get a good salary

Experience

A third factor that affects the average salaries in the UK is the experience of the workers. The more years of work experience a worker has, the more likely they are to receive a pay rise or higher salary, as they have acquired more skills, knowledge, and reputation in their field. According to a survey by Totaljobs, the average pay rise for workers in the UK is 6% per year, which means that a worker who earns £25,000 per year can expect to earn £26,500 after one year of work, £28,090 after two years of work, and so on. However, this also depends on the performance, productivity, and quality of the worker, as well as the economic conditions and the policies of the employer. Therefore, the average earnings of a worker do not always reflect their potential or value.

Know The Living Cost in Your Area

To get a better idea of what a good salary is, we need to consider the living costs in different regions of the UK. Based on different reports and surveys, the average annual cost of living for a single person in the UK in 2023 varies depending on the location.

In London, the average annual living cost for a single person exceeds £43,728. On a national scale, the estimated monthly living expenses for a single individual is around £2,299, translating to an annual cost of living of roughly £27,588. However, it is important to note that these figures are estimates and can vary depending on individual circumstances and choices.

Therefore, whether the average salary is enough for living in the UK depends on where you live and what your lifestyle is. If you live in a cheap city and have modest expenses, you may be able to save a lot of money from the average salary. However, if you live in an expensive city and have high expenses, you may struggle to make ends meet from the average salary. In general, a good salary is one that allows you to cover your essential needs, achieve your financial goals, and enjoy your life.

Moreover, health insurance cost is not the same throughout the UK. It’s best to explore your health insurance options to get the best deal possible. Besides, it’s a requirement for most jobs in this country.

Read more about healthcare in the UK in this article.

Jobs That Can Give You A Good Salary in The UK

Here are five jobs that can give you a good salary in the UK:

1. Chief Financial Officer (CFO)

A CFO is the top financial position in any company. The purpose of the role is to maintain the financial health of the business and includes preserving its assets, enhancing profitability, ensuring compliance, minimizing risks, and running the finance department. The national average wage for a CFO in the UK is £124,410 per year.

2. Executive Director

An Executive Director is one of the most senior positions in a business. It typically sits with the board while having senior management responsibilities at the same time. The main purpose of the role is to develop the business strategy and lead its implementation to build and maintain a healthy business. The national average salary for an Executive Director in the UK is £121,345 per year.

3. Actuary

Actuaries are business experts who use their knowledge of economics, statistics, probability theory, and investment theory to solve business problems. An important focus of the job is to predict emerging financial risk and to devise steps to mitigate the risk should it occur. The national average salary for an Actuary in a private sector is £64,362 per year.

4. Marketing Director

Marketing Directors are responsible for developing and implementing marketing strategies for a company. They work closely with other departments to ensure that the company’s products and services are marketed effectively. The national average salary for a Marketing Director in the UK is £69,049 per year.

5. Managing Director

Managing Directors are responsible for the overall performance of a company. They develop and implement strategies to improve the company’s performance and ensure that it meets its goals. The national average salary for a Managing Director in the UK is £74,450 per year.

Note that these salaries are significantly higher than the national average, which makes them attractive options for those seeking a good salary. However, it’s important to keep in mind that these roles require significant experience and expertise. Additionally, the retirement age in the UK is currently 66 years old. If you’re looking to save money, consider taking advantage of money-saving tips such as budgeting, reducing expenses, and investing in a pension plan.

To explore more about the high-paying jobs in the UK, check our article: Top Highest Paying Jobs in London, UK

Income Tax in The UK

Income tax is a tax you pay on your income, such as money you earn from employment, self-employment, pensions, and savings. National insurance is another type of tax you pay to qualify for certain benefits and the state pension. Both income tax and national insurance depend on how much you earn and are deducted from your pay by your employer or paid by yourself if you are self-employed.

The amount of income tax you pay in the UK is based on your personal allowance, which is the amount of income you can have before you pay tax, and the tax bands, which are the ranges of income that are taxed at different rates. The standard personal allowance for the current tax year is £12,570, and the tax bands are:

• Basic rate: 20% tax on income between £12,571 and £50,270

• Higher rate: 40% tax on income between £50,271 and £150,000

• Additional rate: 45% tax on income over £150,000

The amount of national insurance you pay even if you’re in a private sector depends on your employment status and how much you earn. There are different types of national insurance, known as classes, and the rates vary for each class. For example, if you are an employee earning more than £184 per week, you pay Class 1 national insurance at 12% on your earnings between £184 and £967 per week, and 2% on any earnings above that.

Also, check out our comparison of living in the UK vs Germany. Salaries are higher in Germany.

How Income Tax Affects Your Net Salary?

To illustrate how income tax and national insurance affect your net salary, which is the amount of money you take home after deductions, let’s look at some examples of different income brackets. We will use the median pay of £31,461, as a reference point. We will also use the median average salary for air traffic controllers, which was £52,400, as an example of a higher-paying occupation.

• If you earn £20,000 per year, which is below the UK median salary, you pay £1,486 in income tax and £1,020 in national insurance, leaving you with a net salary of £17,494, or £1,458 per month.

• If you earn £31,461 per year, which is equal to the UK median salary, you pay £3,778 in income tax and £2,590 in national insurance, leaving you with a net salary of £25,093, or £2,091 per month.

• If you earn £52,400 per year, which is the median salary for air traffic controllers, you pay £10,486 in income tax and £4,620 in national insurance, leaving you with a net salary of £37,294, or £3,108 per month.

As you can see, the higher your income, the more tax and national insurance you pay, and the lower your net salary as a percentage of your gross salary. However, you still have more money to spend and save after deductions. Your disposable income is the amount of money you have left after paying for your essential expenses, such as rent, bills, food, and transport. Your disposable income can affect your quality of life and your ability to save money for your future goals.

Are you planning to stay in London? Read this article to know the expected rent expenses: Rent Prices in London [Average Rent in 2023]

Final Thoughts About What Is a Good Salary in the UK

In the UK, a good salary depends on various factors such as location, occupation, and lifestyle. While the average UK salary of £29,669, and £34,963 for full-time workers are considered good salary, it’s crucial to consider the cost of living in different regions. For instance, London’s higher living expenses may require a higher salary for a comfortable lifestyle. Jobs like CFO, Executive Director, Actuary, Marketing Director, and Managing Director offer higher-than-average salaries, but they often demand significant expertise.

Income tax and national insurance further impact your net salary, emphasizing the importance of understanding the tax structure. To determine what constitutes a good salary, assess your needs, living costs, and financial goals in your specific circumstances.

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