What Is the Average Salary in the U.K.?

The average full-time worker in the U.K. makes about £38,500 a year before taxes. Based on the exchange rates at the time of publishing, that equates to about US$52,500.

If you break it down by month, you’ll see that it’s about £3,200 before tax and National Insurance take their cut. After taxes, the employee is left with £2,700.

We’ve also got to take into account the sheer expanse of the U.K.’s talent pool and the sectors they work across. For example, more than 30 million people in the country work for the government. And in 2025, nominal wages went up 4.5%, withreal wages (after inflation) rising 0.6%. That makes Britain the 21st-fastest-growing country in Europe in terms of salaries.

Compared to real growth percentages in other G7 countries, France has 2.2%, Germany has 1.5%, and Italy has 1.8%. The average salary in the U.K. is lower than in most countries. And that’s something that global employers interested in British talent should know.

While the U.K.’s lower salary looks good on paper, the buying power in different regions complicates what these statistics tell us. For instance, London pays a lot more than the national average, while northeastern England and Northern Ireland pay a lot less.

Average salary by job type in the U.K.

You want to know how much it really costs to hire a marketing manager in Manchester or what a software engineer in Edinburgh expects to see on their paycheck. Here’s how it breaks down.

• Software Engineer. £49,500 (US$67,500)
• IT Project Manager. £52,000 (US$71,000)
• Data Scientist. £46,000 (US$63,800)
• Financial Analyst. £55,000 (US$75,000)
• Marketing Manager. £44,600 (US$60,900)
• HR Manager. £45,000 (US$61,400)
• Business Analyst. £45,850 (US$62,600)
• Accountant. £39,100 (US$53,400)
• Registered Nurse. £37,400 (US$51,000)
• Project Manager. £57,500 (US$78,500
• Customer Support Reps. £32,000 (US$43,700)
• Administrative Assistant. £25,000 (US$34,100)

These numbers show the gross annual salaries for full-time workers in the U.K. Keep in mind that tech hubs like London usually cost 15–30% more than these national averages. Tech roles and specialized positions exhibit the greatest variation across company size and sectors.

Salary differences across major cities and regions in the U.K.

When it comes to hiring in the U.K., where you hire is just as important as who you hire. An engineer hired in Newcastle will cost you less than an engineer hired in Canary Wharf—and that difference isn’t negligible.

London

London tops the list, with a median salary of £46,800 (US$63,900). That’s 21% greater than the national median. And while that may seem like a high number, keep in mind that there’s a large pool of talented candidates available in a city with top-tier infrastructure for businesses looking to enter the U.K. market.

However, there’s a trade-off: London’s cost of living is approximately 100% higher than northern England, which means your employees pay more for housing, transportation, food, etc. Therefore, although gross salaries may be high, once you factor in the net cost of living (net buying power), the two regions may end up being relatively comparable.

Edinburgh

Edinburgh’s median salary stands at £38,900 (US$53,000), which is higher than most English regions. Edinburgh is home to a thriving financial sector, tourism industry, and rapidly developing technology industry.

While the cost of living in Scotland is lower than in London (which allows employees to stretch their dollars), salaries in Edinburgh offer attractive benchmarks for employers looking to tap into a dynamic workforce at a lower labor cost.

Manchester

A median salary of approximately £35,900 (US$49,000) makes Manchester a highly attractive location for tech startups and financial institutions looking to hire quality talent away from the high costs associated with living and working in London.

The U.K.’s North West region has experienced steady wage increases, providing lean global companies the opportunity to offer competitive salaries in an area with a lower cost of living.

Birmingham

The median salary in the Birmingham/West Midlands region is approximately £36,700 (US$50,100). The West Midlands has been the industrial and logistical hub of the U.K. for decades, driven by manufacturing, data centers, and distribution facilities.

As such, salaries in the area tend to be reasonably priced, more than those found in the North East part of the U.K., but less than those found in the South. For operational, supply chain, and warehouse management positions, Birmingham offers a large talent pool without the added salary costs of London.

Glasgow, Bristol, and Leeds

Glasgow is also in the same group as Edinburgh, with an average salary of about £38,900 per year in the larger Scottish market. Bristol and Leeds both have slightly higher salaries than Glasgow. Leeds’ salaries have gone up substantially in recent years because of its growing tech and professional services industries.

These three cities have become popular places for start-ups and scale-ups seekingaffordable talent outside of London. Bristol is close to the South West tech corridor, which is expected to add 125,000 tech jobs by 2026, mostly in green tech and environmental innovation. Leeds has access to Yorkshire’s talent pool and is attracting talent at a lower cost.

Remote work and regional talent availability

The most recent reports show that 40% of employees in the U.K. now work from home, with 14% fully remote and 26% hybrid. In 2025, more than half of U.K. employers will let their employees work from home. In turn, that makes location-based pay models less relevant.

Candidates are increasingly expecting flexibility as a must-have benefit. This gives employers the freedom to hire people from anywhere in the U.K. without having to move them or pay London rates for workers in Newcastle. But it also begs the question: Do you pay the employee based on where they live or where the job is? There’s still no one answer that works for everyone.

Some companies have seen their time-to-hire cut by as much as 70% thanks to remote work. Previously hidden regional talent pools are now open to everyone. Employers must ensure their pay structures are fair and clear, taking into account both local rates and the benefits of working from home.

Key factors and trends that influence salaries in the U.K.

The factors shaping the U.K.’s wage landscape includelocation, employer type, educational attainment, skill set, and public versus private employment. These wages also shift in response to broader economic trends, including:

• Seniority/experience. Salary figures for entry-level roles begin around 60–70% of the mid-career average; salaries for senior roles (10+ years) with high levels of responsibility may be 40–60% above the U.K.’s average salary.
• Geographic location/industry. Wages in London-based finance roles are likely to be double that of a similar role in the North East; salaries in tech roles in Cambridge may exceed those in coastal regions by 50–100%.
• Size of employer (multinational vs. small business). On average, multinationals tend to pay around 25% more than smaller employers. However, many small teams tend to compensate their employees through alternative means, such as stock options, flexible work arrangements, and career advancement opportunities.
• Level of education. An individual who holds a bachelor’s degree can expect to earn about £10,000 more per year than someone without one. Individuals holding advanced degrees in specialized areas such as data science or law may see their average salary increase by £20,000 or more in the U.K.
• Emerging skills (AI, cybersecurity, data science). Due to severe shortages of qualified candidates in AI, machine learning, and cybersecurity, professionals with expertise in these areas may expect to see wage increases of up to 35% compared to those working in general IT.
• Post-Brexit labor dynamics. The decline in EU migration has tightened labor supply in the healthcare, hospitality, and logistics industries, driving wage increases in sectors that historically relied on foreign workers.
• Wage growth in green economy/sustainability roles. In response to the U.K.’s push towards achieving net-zero status, there is increasing demand for green-tech roles like environmental engineers, sustainability consultants, and renewable energy specialists.

Understanding the U.K.’s salary structure

The £45,000 salary posted in a U.K. job listing is considered the gross pay. It’s the amount before the government takes its cut. The amount that actually goes into your employee’s bank account is called net pay. The difference between the two can be surprising for people who are new to the U.K. payroll system.

An employee who makes more than £12,570 must pay 20% in income tax. If earnings are more than £50,270, they have to pay 40%, and if they make more than £125,140, they have to pay 45%.

National Insurance adds another layer, taking 8% to 12% of your income, depending on how much you make. With these deductions, a salary of £45,000 means that you will take home about £33,000.

Most businesses in the U.K. pay their employees once a month, usually on the last working day of the month. Total compensation often includes more than just base salary. It can also include pension contributions (at least 3% from the employer by law), bonuses based on performance, private health insurance, and benefits like cycle-to-work programs or flexible work models.

Pensions are important here. Eligible employees automatically sign up for a workplace pension, and at many companies, the total contributions from both the employer and the employee are 8% or more. When planning for new hires in the U.K., employers must take these extra costs into account.

FAQs

You have questions. We have answers. Here are the most common queries employers and professionals ask when navigating U.K. salary expectations in 2026.

What is the minimum salary in the U.K.?

The National Living Wage for workers aged 21 and over is £12.21 per hour as of April 2025. For a full-time employee working 37.5 hours per week, that translates to roughly £23,800 annually before tax.

What is the average salary in the U.K. per month?

The average full-time worker earns approximately £3,200 gross per month. After income tax and National Insurance deductions, an employee can expect around £2,700 net in their bank account.

What is a good salary in the U.K.?

Anything above £40,000 places is consideredin the upper-middle income bracket and offers a comfortable living in most regions outside central London. It’s all relative. A £50,000 salary feels generous in Manchester but merely adequate in parts of the capital where housing costs devour larger chunks of take-home pay.

How much does a software engineer earn in the U.K.?

Software engineers in the U.K. average around £49,500 annually (US$67,500). Senior engineers with specialized skills in cloud architecture, AI, or cybersecurity can command £65,000 to £85,000 or higher, particularly in London and Cambridge tech hubs.

Are salaries in London higher than the rest of the U.K.?

Yes, London salaries run about 21% above the national average, with median earnings of £46,800 compared to £38,500 nationally. The premium reflects higher living costs, deeper talent competition, and concentration of high-paying finance and tech roles.

How much is tax deducted from U.K. salaries?

Income tax starts at 20% on earnings above £12,570, rising to 40% above £50,270 and 45% above £125,140. National Insurance adds another 8–12% depending on income, meaning total deductions typically range from 28–57% for most earners.

Hire in the U.K. without the hassle

Hiring in the U.K. means understanding regional variations, tax structures, and evolving labor trends. But you don’t need to become a compliance expert or set up a local entity to bring on talented professionals in London, Manchester, or Edinburgh. As a global EOR provider in over 185 countries, Pebl handles the payroll, benefits, taxes, and legal requirements so you can focus on building your team and growing your business across borders. Get in touch to learn more.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

© 2026 Pebl, LLC. All rights reserved.