The UK labour market entered 2026 with wage growth slowing from the post-pandemic surge but still running ahead of inflation. The median gross annual salary for full-time employees is approximately £38,500 in 2026, while the all-employee median (including part-time) is around £35,000–£37,000 depending on the measure used.
Mean vs Median: Which Matters?
The median salary is the middle value — 50% earn above, 50% below. It is not skewed by very high earners. The mean (average) salary is approximately £42,000–£44,000, pulled higher by the salaries of the top 1-5% of earners. For benchmarking your pay, the median is the more useful figure.
How Does Your Salary Compare?
Enter your gross annual salary to see where you stand against UK benchmarks and calculate your take-home pay.
Your Salary Comparison & Take-Home Pay
Salary data is based on ONS Annual Survey of Hours and Earnings (ASHE) 2025, recruitment industry data, and sector reports updated to reflect 2026 wage trends.
| Sector | Median Salary | Entry Level | Senior Level |
|---|---|---|---|
| Finance & Banking | £62,000 | £28,000 | £120,000+ |
| Legal Services | £58,000 | £26,000 | £100,000+ |
| Technology & IT | £56,000 | £30,000 | £90,000+ |
| Oil, Gas & Energy | £55,000 | £32,000 | £95,000+ |
| Management Consulting | £54,000 | £28,000 | £100,000+ |
| Pharmaceuticals | £48,000 | £28,000 | £80,000+ |
| Engineering | £45,000 | £28,000 | £75,000+ |
| NHS / Healthcare | £38,000 | £25,000 | £65,000+ |
| Construction | £36,000 | £22,000 | £60,000+ |
| Education | £35,000 | £28,000 | £55,000+ |
| Marketing & PR | £34,000 | £23,000 | £65,000+ |
| Public Sector (excl. NHS) | £32,000 | £22,000 | £50,000+ |
| Retail | £25,000 | £13,000 | £45,000+ |
| Hospitality & Catering | £22,000 | £12,580 | £40,000+ |
| Care & Social Work | £21,000 | £12,580 | £35,000+ |
There is significant regional variation in UK salaries. London consistently leads, with average full-time salaries around 25% above the national median. However, living costs — particularly housing — are also substantially higher in London, meaning the real-terms advantage may be smaller than the headline numbers suggest.
Figures are approximate median full-time annual salaries. Source: ONS ASHE 2025, updated to reflect 2026 pay trends.
Your gross salary is just the starting point. Here is exactly how much you take home after income tax (2025-26 rates: personal allowance £12,570, basic rate 20%, higher rate 40%) and National Insurance (8% on earnings between £12,570 and £50,270, 2% above).
The £100,000 Trap: Effective 60% Tax Rate
Earners between £100,000 and £125,140 face an effective marginal tax rate of 60%. For every £2 earned above £100,000, the £12,570 personal allowance is reduced by £1. This creates a 60% effective rate (40% income tax + 20% income tax on lost personal allowance). The personal allowance is entirely withdrawn at £125,140.
Salary by Age Group (Median Full-Time, 2026)
| Age Group | Median Salary | vs UK Median |
|---|---|---|
| Under 18 | £9,400 | -75% |
| 18–21 | £19,500 | -49% |
| 22–29 | £29,000 | -25% |
| 30–39 | £40,000 | +4% |
| 40–49 | £44,500 | +16% |
| 50–59 | £43,000 | +12% |
| 60+ | £37,500 | -3% |
The UK Gender Pay Gap
The gender pay gap for full-time employees remains at approximately 7.5% in 2026 (down from 27% in 1997). The gap is significantly larger across all workers (including part-time) at around 14.3%, driven by the higher proportion of women in part-time roles.
The gap is narrowest in younger age groups (nearly closed for those aged 22-29) but widens significantly after 40, partly reflecting the impact of career breaks for childcare and the concentration of women in lower-paid sectors.
Large employers (250+ employees) are required to publish gender pay gap data annually under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.
How to Negotiate a Higher Salary
- Research the market: Use salary surveys, recruitment agency data, and job ads to establish the market rate for your role, sector and location before negotiations begin
- Know your value: Quantify your contributions — revenue generated, projects delivered, cost savings achieved
- Time it right: Performance review cycles, after completing a major project, or when starting a new job offer are the strongest leverage points
- Be specific: Name a figure rather than a range. Anchoring high (but not unrealistically so) typically produces better outcomes
- Consider total compensation: Pension contributions, flexible working, bonus potential, healthcare, and development budget all have monetary value
- Get competing offers: Nothing strengthens your negotiating position more than a genuine competing job offer
National Living Wage and Minimum Wage 2025-26
The National Living Wage (NLW) for workers aged 21 and over increased to £12.21 per hour from 1 April 2025 — a 6.7% increase. At full-time hours (37.5 hrs/week), this equates to approximately £23,860 per year. Younger workers and apprentices have lower minimum rates.
- Age 21+: £12.21/hr (National Living Wage)
- Age 18–20: £10.00/hr
- Age 16–17 / Apprentices (yr 1): £7.55/hr