UK Salary Increase 2024

British employers expect lesser pay increases in the next year than they did three months ago, the first dip in nearly four years, showing a reduced readiness to absorb increased labor costs.

The findings are likely to boost Bank of England officials’ confidence that domestic inflation pressures are reducing following recent steep declines in energy costs, clearing the path for lower interest rates later this year.

Average UK Weekly Wages

According to the most recent government data, the average UK weekly wage (including bonuses) across all industry sectors (in England and Wales) is £672 gross, which equates to an annual pre-tax salary of roughly £34,900.

In 2022, the median salary for senior CEOs increased by 16% to £3.91 million. The statistic, released by the High compensation Centre, a think tank that studies CEO compensation, is more than 118 times higher than the average salaries of UK workers.

Increase In Wages

In contrast, approximately three million workers receive the National Living Wage of £11.44 per hour. In April 2024, the National Living Wage eligibility age was raised from 23 to 21. The national minimum wage (for workers aged 18 to 20) is £8.60 per hour, or £6.40 for younger employees aged 16 and 17.

In March, the ONS stated in its monthly wage growth update that average employee earnings (including incentives) increased by 5.6% from November 2023 to January 2024. It suggests salary growth is outpacing inflation.

In February 2024, earnings in the UK increased by almost 4.2 percent; but, after accounting for inflation, real wage growth was just 2.9 percent. Wage growth was 3.7 percent in nominal terms but only 2.3 percent in real terms when bonus pay was taken into account.

Average Income Based On Age

Our age has a significant impact on our income; until we turn 50, our weekly pay usually increases as we age. Weekly median pay for full-time workers is £682. That works out to about £35,464 annually.

Pay tends to increase throughout our 20s, 30s, and 40s, indicating that these are the years when the largest professional improvements usually occur, supported by elements like education and training, experience, job change, and promotion.

It emphasizes how crucial job experience and skill development are to closing the wage gap. Younger people should typically have far higher earning potential as they become older, develop new abilities, and gain job experience. This will eventually lead to an increase in their pay overall over the course of their careers.

Average Income Based On Gender

In every age group, men make more money working full-time than women do. The gender wage gap decreased little from 8.3% in April 2022 to 7.7% in April 2023.

The gender wage disparity for workers between the ages of 30 and 59 is still quite noticeable. Higher earners see a substantially greater gender disparity in hourly compensation when compared to lower paid employees.

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