UK Average Salary 2026 — What Are People Really Earning?
United Kingdom · April 1, 2026 · 8 min read
The median UK full-time employee now earns £35,404 per year — up from £34,963 the year before, according to the latest ONS Annual Survey of Hours and Earnings (ASHE). But averages hide vast variation. A nurse and a software engineer can both claim "average" salaries that differ by £30,000.
This guide breaks down UK earnings by sector, region, gender and age group — and more importantly, tells you exactly what each salary looks like as actual take-home pay after income tax and National Insurance for 2025/26.
UK median vs average salary — what is the difference?
The median salary (£35,404) is the midpoint — half of all full-time workers earn more, half earn less. The mean average salary is higher (approximately £42,000) because high earners pull it upward. For most comparisons, the median is more useful.
Note that these figures cover full-time employees only. The median for all workers including part-time is significantly lower at around £26,500.
UK average salary by sector (2025/26)
Finance, banking and insurance: Median approximately £55,000–£65,000. London-based roles and senior positions frequently exceed £80,000–£100,000. This is consistently the highest-paying sector in the UK.
Technology and IT: Median approximately £48,000–£55,000 nationally, rising to £60,000–£80,000 for senior roles in London and major tech hubs. Software engineers at FAANG companies in London routinely earn £90,000–£150,000+ total compensation.
Healthcare (NHS): NHS Band 5 (newly qualified nurse, physiotherapist) starts at £29,970 rising to £36,483. Band 7 (senior nurse, specialist) ranges from £46,148 to £52,809. NHS consultants earn £105,504–£139,882 under the 2023 consultant contract.
Education: A newly qualified teacher (NQT/ECT) in England earns £30,000 outside London, rising to £36,745 in inner London. Experienced teachers on the upper pay scale earn £41,333–£47,839 (England and Wales). Headteachers can earn £47,000–£125,098.
Engineering and manufacturing: Median approximately £38,000–£48,000. Chartered engineers, particularly in oil and gas, aerospace and defence, earn £60,000–£90,000.
Hospitality and retail: These sectors have the lowest median wages, typically £22,000–£28,000 for frontline roles. The National Living Wage rise to £12.21/hour from April 2025 equates to approximately £23,449 for a 37-hour week.
Legal and professional services: Solicitors at large City firms (magic circle) start at £50,000–£100,000 as trainees, rising to £150,000+ for partners. Regional firms pay £25,000–£45,000 for qualified solicitors.
UK average salary by region (2025)
London: Median full-time salary £44,370 — approximately 25% above the national median. However, London's housing costs can consume 40–50% of take-home pay for typical workers, eroding the real purchasing power advantage significantly.
South East: Median approximately £39,500. High cost of living (especially commuter belt housing) but better value than London once housing is factored in.
East of England: Approximately £37,000. Cambridge tech cluster pushes the median up.
West Midlands, Yorkshire, North West: Range from £32,000 to £35,000 — close to or slightly below the national median but with significantly lower housing costs and cost of living.
Wales and North East: £29,000–£31,000 median. The lowest regional wages, but also the lowest housing costs — meaning real living standards are closer to the national average than the nominal figures suggest.
Scotland: Approximately £35,000 median — close to the national average, but Scottish taxpayers pay slightly more income tax than their English counterparts on middle incomes due to Scotland's separate tax rates.
UK salary by gender — the pay gap in 2025
The UK gender pay gap (median, full-time) has fallen to approximately 7.7% according to the latest ONS figures — the lowest recorded. The gap widens significantly for part-time workers, where female-dominated industries show larger disparities.
The gap is largest in financial services (approximately 30% at some firms) and smallest in healthcare, education, and public administration where standardised pay scales apply.
UK salary by age group
Earnings follow a predictable arc across a working life. Median full-time salary by age group (approximate, 2025):
Ages 18–21: £20,000–£22,500. Many start below the National Living Wage rate for their age group.
Ages 22–29: £26,500–£32,000. Early career progression. London graduates often start £28,000–£35,000; outside London £23,000–£28,000.
Ages 30–39: £36,000–£42,000. Prime earning growth period as skills accumulate.
Ages 40–49: £40,000–£47,000. Peak earning years for most professionals.
Ages 50–59: £38,000–£43,000. Slight decline from peak as career progression slows.
Age 60+: £32,000–£36,000. Many move part-time; some have pension income supplementing salary.
What does the UK median salary actually take home?
On the median full-time salary of £35,404 in 2025/26:
Income tax: The first £12,570 is covered by the personal allowance (0%). The remaining £22,834 falls in the 20% basic rate band = £4,567 income tax.
National Insurance: 8% on £22,834 (earnings between £12,570 and £35,404) = £1,827 NI.
Total deductions: £6,394 — representing an effective tax rate of 18.1%.
Annual take-home: approximately £29,010 (£2,418/month or £557/week).
If this employee also has a student loan (Plan 2), repayments of 9% on £8,109 above the £27,295 threshold = £729/year additional deduction, bringing take-home to approximately £28,281 (£2,357/month).
How do UK salaries compare internationally?
The UK's £35,404 median equates to approximately €41,000 or $46,000. This places the UK in the middle tier of developed economies — behind the US, Switzerland, Luxembourg and Australia (where median wages are significantly higher in nominal terms), but ahead of most EU member states including France, Spain and Italy.
However, when adjusted for cost of living (purchasing power parity), UK salaries compare less favourably due to high housing costs, particularly in London and the South East.
Will UK salaries increase in 2026?
The Bank of England's inflation target of 2% and forecast GDP growth of 1–1.5% suggest real wage growth of 1–2% in 2026. Public sector pay awards have recently lagged private sector, though NHS and teacher settlements have begun to close this gap. The continued rise of the National Living Wage — now £12.21 and rising — is compressing wages at the lower end upward, narrowing the lowest-to-median gap.
Calculate your own UK take-home pay
The figures above are based on the median salary. Your actual take-home depends on your exact gross salary, whether you live in Scotland (different income tax rates), student loan plan, pension contributions, and tax code.
Use our UK salary calculator to enter your exact gross salary and see a precise breakdown of income tax, National Insurance, student loans and pension contributions for 2025/26. The calculator covers both England/Wales/Northern Ireland and Scotland rates.