What Is a Good Salary in the UK?

A good salary enables you to support your desired lifestyle comfortably. To determine the monetary value of a good salary, you need to consider a few additional factors, such as where you live, the number of people you’re supporting, or your industry.

Although judging your salary directly against others can be tempting, that approach tends to ignore one or several influences. To illustrate, let’s look at the average salary in the United Kingdom.

According to the Office for National Statistics (ONS), the mean annual wage across all full-time occupations in 2020 was £38,600 [1]. For a person living in the North East, where the mean wage is £32,469, earning above the national average may be considered very good. However, a person living in London, whose mean wage is £55,929, may disagree. Similarly, a single person supporting only themselves on a £38,600 salary may feel comfortable, while a person supporting a family of four on that same salary may feel stretched.

In this article, we’ll examine the different factors that can influence salary and discuss the thought process for determining your good salary.

Factors that impact salary

Several factors affect your salary, and each of those factors can help you assess whether you are being compensated adequately and fairly. Some common factors to consider are your:

• Location

• Experience

• Education

• Industry

As you assess whether your salary is ‘good’ compared to your peers—or if you are trying to determine a fair salary to ask for with your employer—you’ll typically want to consider each of these factors together.

Location

Your cost of living will vary depending on where you live, meaning the same lifestyle can cost more or less money in different locations. If you live in a location with a high cost of living, you’ll require a higher salary than you would in a location with a lower cost of living to afford the same lifestyle.

Because the cost of living varies by location, a good salary can also vary by location.

Median UK salary by location

Here are the median salaries across all occupations in various UK in 2024 areas by region, according to an annual survey conducted by Statista [2]:

Experience

With experience, you’ll often earn more money than you did at the start of your career, thanks to new skills you’ve gained and the expertise you’ve honed. Perhaps your experience level will reflect a higher job title or responsibilities.

Median UK salary by age

One simplified way to assess salary by experience is to look at the average salary across various age groups, assuming that older people tend to have more work experience than younger people.

Here are the estimated median salaries of UK employees by age and gender, calculated using data from a 2024 survey conducted by Statista [3]:

Median UK salary by education level

Another way to gauge experience may be by education level. Furthering your education is often seen as one way to exemplify skills and knowledge in your field, typically leading to higher salaries. For example, teachers may qualify for a higher salary after earning their master's. Note, however, that different fields tend to have different educational standards and requirements.

Here are the estimated median salaries of UK employees across all industries by education level, calculated by the 2018 Annual Population Survey by the ONS [4]:

Industry

Certain industries tend to be more lucrative than others, so your industry can significantly determine how much money you make. Similarly, your salary can fluctuate depending on your specific role within your industry. 

Median UK salary by industry

Here are the median salaries across all occupations in various industries in the UK in 2024, according to ONS as reported by Indeed UK [5]:

How to do salary research

Several tools aggregate data from current employees and employers in various locations and across all experience levels and industries to determine a specific fair market value for any given position. As you conduct salary research, use tools such as LinkedIn Salary, Glassdoor, or Payscale to estimate what other people in situations similar to yours are making.

Determining what a good salary is for you

Typically, your bottom line isn’t dependent upon your location, experience, and industry. Rather, there are times when you want first to consider your salary needs and then find a job that will fulfill those needs.

To determine your ideal budget, list your living expenses and lifestyle desires. Some items that may make it into your budget include:

• Housing

• Groceries

• Car payments

• Education

• Entertainment

• Long-term savings

You can work with a weekly, monthly, or annual budget and then use that to determine what a good salary would be for you.

Ways to increase your salary

There are typically ways to increase your salary to better align with your financial goals. Here are some ideas to get started:

1. Expand your skill set.

As you gain new skills or strengthen your current skills, you may qualify for more advanced positions. Consider taking an online course, volunteering for a new project, or earning a certification to showcase your skills.

2. Switch to a higher paying industry.

Since certain industries tend to pay better than others, you may be able to earn more money if you move into a new industry or job function. You likely already have several transferable skills that show your qualifications.

3. Ask your employer for more.

As you conduct salary research, you may notice that you aren’t earning the expected market value. Asking your employer for a raise—or, if appropriate, a promotion—can be one way to ensure fair compensation.

4. Incorporate alternative income streams.

Consider starting a side hustle or creating a passive income stream. Both options can increase your overall income—however, they also require some additional work.

Getting started

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