You've probably googled "average UK salary" at some point in your life, probably when you were trying to figure out why half of your friends still take their laundry to their parents' house or why you still have to take your laundry to your parents' house. Either way, you'll have done so at some point in your life.
There has never been a time when it has been more important to know how your annual salary compares to the national average wage, regardless of whether you work part-time or full-time in the United Kingdom. This is because of issues such as the gender pay gap, which is constantly in the news, rising interest rates as a result of the Covid pandemic, and a much-discussed cost of living crisis that is on the horizon.
The purpose of this article is to demystify how much individuals in the UK are truly making, taking into consideration everyone from those receiving the minimum wage to those earning large bread, and to explain how you may increase your full-time pay to be among the top earners in the nation.
The typical income in the UK
A word of caution: analyzing the data at this time is especially challenging due to the fact that the results from 2020 were impacted by the Covid-19 epidemic and the related challenges in getting data from companies. Since of this, any comparisons you make should be taken with a grain of statistical salt because the trend extended until 2021 and is only now beginning to level down.
The most recent statistics released by the Office for National Statistics (ONS) is encouraging for those of us who are seeking for new employment opportunities. There were 29.5 million payrolled workers in the UK in December 2021, which was an increase of 184,000 from the number for November and an increase of 409,000 from the level in February 2020 before the introduction of COVID. In addition to this, employment rates in every area are currently higher than they were before the Covid drought. This is consistent with the estimate that the number of job openings will hit a new high of 1.247 million during the period of October to December 2021, representing a rise of 462,000 above the levels seen during the period of January to March 2020. The widespread availability of possibilities was another hopeful sign, with a record number of openings being posted across various sectors.
However, employment numbers do not indicate earning potential, and the rise in pay has not kept pace with employment levels. On the surface, the increase in regular pay among workers in September to November 2021 was 3.8%. This figure does not include any incentive pay. However, regular pay has not changed from the previous year when adjusted for inflation (real earnings), and in fact, real wages decreased (by one percent) in November 2021 for the first time since July 2020. This was the first time real wages have decreased since July 2020. The impending increases in the cost of electricity and the expected increases in the cost of national insurance will add to the possibility for more problems throughout the year.
However, because to the volatility in the early part of the year, it is worthwhile to examine 2021 in order to get a more stable look at the pounds and pence we have been bringing home, and it is not all negative. According to the ONS, the median weekly wages for full-time workers in April 2021 increased by 4.3 percent when compared to the same month the previous year. This indicates that the typical individual brought home £611 each week, which is equivalent to around $31,772 per year. The growth rate is the best it has been since 2008, yet after accounting for inflation, it is still 2.3% lower than in that year. Before you start rejoicing or bemoaning the situation you find yourself in at the moment, it is important to note that the statistics, predictably, vary greatly based on a person's age, gender, location, and profession. A brief summary is as follows...
It probably won't come as a surprise to find that those living in London are bringing home the highest money - an average of £728 per week. The median in the nation's capital is £68 more per week than the next highest region, which is the South East (which has a median of £660), and £117 more than the median for the whole UK. It is important to keep in mind, however, that this number is inflated by the city's super-earners, such as CEOs who make six or even seven figures. In geographical terms, taking place-of-residence into consideration, the North East has the lowest median wage, with full-time workers receiving £547 per week on average.
Age and gender
Additionally, it is beneficial to have some prior experience in the working world. In terms of weekly earnings, those aged 16 to 17 brought in the least money in 2017, with an average of £220 (£219.10 for males and £220.40 for women). The only age bracket in which women are more likely to earn more than men is the youngest age group, with the statistics fast climbing to £354 and £327 for men and women between the ages of 18 and 21, respectively. This is the only age bracket in which women are more likely to earn more than men. It is reasonable to anticipate that your wages will reach their maximum throughout the middle years of your life. Individuals aged 40 to 49 bring in the most money of any age group, with a median of £704 each week. After that, the typical wage begins a slow but steady decline as one gets closer to the age of retirement; full-time workers aged 50 to 59 bring in an average of £648 a week. And the sum rises to £575 for those individuals aged 60 and older. It is important to keep in mind that these numbers will probably start to decrease as a result of employees retiring, which will result in a large reduction in the average salary.
Because of the field that you are working in, there is a possibility that you are not making as much money as your contemporaries do. That's great if you're absolutely head over heels in love with what you do and you make enough money to sustain yourself, but if making money is your primary motivation, you may want to think about finding another line of work. However, it is important to keep in mind that the top-paying occupations in the nation are held by chief executives and senior officials, who make a median of £2,514 per week. These individuals hold the jobs with the greatest salaries. According to data conducted by the think tank High Pay Centre, the wages of the typical FTSE 100 CEO had already exceeded the median annual income of a full-time worker by nine o'clock in the morning on Friday, July 7, 2022. Nice employment if you can get it.
If you want to make the greatest money possible, it could be worth your while to bide your time and work your way up in the firm that you are now employed by. Alternatively, you might go into politics; however, who would want to join Westminster at this time?
Legal professionals that do not fit into any other category come in at number two on the list of highest-paying employment. This includes all legal professionals with the exception of judges, lawyers, and barristers, a group that is relatively small but obviously well-paid (£1,781 per week). Coming in at number three are marketing and sales directors, who earn an average of £1,652 per week, followed by brokers, who earn an average of £1,613 per week.
The effects of the pandemic
The Office for National Statistics (ONS) advises against forming hasty judgments based on month-to-month information. This is partly because to the impact that Covid-19 has had on the economy, which includes furlough periods. The initial drop in average wages that occurred at the beginning of the epidemic was followed by a steady rebound, which resulted in this year's robust percentage increase in earnings. However, most of this might be attributable to something called the composition effect. This implies that since many of the employment that were lost during the pandemic were in low-paid industries (such as hospitality, for example), the average for the jobs that remained was pulled up to a higher level. According to the ONS, this artificial increase in pay growth seems to have essentially faded at this point in time.
When to ask for a pay increase
Are you dissatisfied with your position in relation to the rest of the population as it is right now? If that's the case, the time to begin making progress for a pay increase is right now. After reading this essay, however, we are not advocating that you rush into the office of your supervisor and demand an increase in pay right now. The process of getting what you believe you deserve is one that is far more complex and requires careful execution in order to be successful.
If you've received a pay increase in the recent past, it's usually best to grit your teeth and learn to be content with what you have for the time being. It's crucial to keep in mind that you should be expecting a rise approximately once a year. This is something you should keep in mind at all times. On the other hand, if it has been a year or more since the last time your pay was increased, you should start working on your plan as soon as possible in order to maximize your earnings.
It is best practice to ensure that you are aware of when your next performance review is scheduled so that you may make an appropriate request for a raise in compensation at the appropriate time. Unfortuitously, the personality of your boss will have a significant impact on how you should go with the remainder of the procedure. If they are the kind of person that gets right to the point without much fluff, then an email sent in the time leading up to your review in which you make it very obvious that you would want to discuss a revised pay should be received favorably. In other circumstances, you may have to subtly bring it up in the course of another discussion.
However, if and when the subject does eventually arise, be sure to have a convincing argument ready to present in support of your claim that you should be paid more. Have you taken on any extra responsibility since your previous pay rise? Or implemented any novel business methods that have resulted in big gains for the company? Before you walk in there and ask for extra money, give it some serious thought and make sure that these things are crystal clear in your head. There is no space for missing essential points and tripping over phrases when you present your case; thus, you need to deliver it with confidence. It definitely wouldn't hurt to practice your statement in the morning in front of the mirror in your bathroom.
In addition to this, it is necessary to have a realistic notion of how much of a raise you may anticipate to get in the future. Do some research on the typical earnings of individuals working in your profession, and don't be afraid to ask around to find out how much money others are making. Don't be bashful when it comes to talking about money with your pals; the longer you keep yourself in the dark about how much money other people are making, the less certain you'll feel when negotiating with your management. After that, you will have the option of choosing how much of a raise you would want to get in your income, or you may wait for the employer to offer a figure to you. Keep in mind that this is a tricky game; thus, the second choice is generally the safest one, and if the amount is too low for your taste, you may always attempt to renegotiate the terms. Instead of going in with an off-putting request that is instantly rejected, it is preferable to progressively work your way up to the desired amount in this manner.
Do not allow yourself to get disappointed in the event that you are rejected. Make the most of this opportunity to demonstrate that you are eager to remain with the company and improve your performance: ask what kinds of things you could begin doing to merit a pay raise in the future and walk out of the negotiations with your head held high. This will show that you are keen to stay with the company and improve your performance. It's not always about you; these days, it's not at all unusual for businesses to simply not have the funding to do what they want to do. If you like what you do for a living, you might consider staying there and figuring out how to negotiate a pay increase in the very near future. If you are already sick of it, then it is usually a good idea to investigate the possibility of switching to something else.
A guide to negotiating a higher compensation when accepting a new job offer
You have decided to move on with your life and have found another employment opportunity for yourself. Isn't it wonderful news? Before you can breathe out a sigh of relief and begin to celebrate, you need to give some careful consideration to how you will accept the offer so that you may make the most of the opportunities that it presents to you.
int, you should wait for the employer to provide a number before thanking them for the offer and respectfully requesting some time to think about it. Only after you have done so should you rush in to close the deal. You may have the feeling that you want to take the job right away, but it is much smarter and really required of you that you do this. This will give you time to consider properly without enthusiasm clouding your judgment, which will allow you to decide whether or not you want to accept the position.
After you have informed your mother of the wonderful news and regained your composure, it is time to give great consideration to the amount of money you want from the role and how to go about obtaining it. This procedure is extremely similar, in many respects, to the manner in which one might negotiate an increase in salary. You need to be prepared with information about how much other people in your area are making, and you also need to be able to market yourself, which is something that you are obviously already fairly good at given the fact that you are in this position.
When it comes to beginning wage discussions with the employer, it is essential that you approach the topic without taking an aggressive stance and that you present your desired pay as a simple recommendation rather than a diva demand. Be sure to have a positive attitude towards the position during the whole of it, since the objective here is to present yourself as a devoted and important future member of the team. Any kind of ultimatum should be avoided at all costs since it will immediately put a stop to the discussions and may even result in the loss of your employment.
You may try to negotiate additional employee advantages such as vacations and bonuses if they won't bend on the wage, but it's unlikely that would be successful. These advantages will look like minor demands in comparison to the raise in income that you had previously recommended. As a result, they may be more willing to throw you a bone, especially if you were able to preserve your charming demeanor throughout the bargaining process. If this is not the case, you should also consider asking if there is the possibility of scheduling a pay review after you have completed your probationary period. In this way, you will have the opportunity to demonstrate your capability in the role, and you will be able to argue your case with more assurance. But keep in mind that a man's pay does not always represent his value.