Navigating the average UK salary in 2025: a guide for HR leaders

As we progress through the final quarter of 2025, now is the perfect time for every HR manager in Britain to analyse this year’s wage data. Navigating salary benchmarking can feel overwhelming, but understanding the average UK salary trends is essential for making confident HR decisions. The average UK salary is a key figure that will directly impact your annual recruitment, your budget after tax, and your retention strategy for the upcoming financial year.

The labour market remains a highly competitive space where the total number of available jobs requires a great strategy for attracting talented people. This guide is for the modern manager, using the latest available data and statistics from multiple reliable sources to provide clear estimates on earnings. These ongoing changes impact your entire workforce, so understanding the average wage at every level is essential for business growth.

The 2025 UK salary landscape in numbers

When people discuss the average UK salary, they often use a single figure. However, the reality is far more nuanced. It is vital for any HR manager to look beyond the headline number and understand the data behind it. 

The latest Office for National Statistics (ONS) labour force survey data gives the clearest picture of annual earnings. The median annual pay for full-time employees is the most accurate measure for any manager to follow. For the current period, the median gross annual salary figure is approximately £37,000. It’s crucial to use this median figure because the overall average salary, or mean figure, can be easily skewed by a small number of very high earnings, which doesn’t reflect the real financial situation for most people. These statistics are far more useful than raw average data.

Annual wage growth is another critical piece of data. The growth rate for regular pay (the figure excluding bonuses) is currently around 5.0%. This data highlights that, in addition to developing training following the Covid pandemic, businesses are continuing to increase the total salary they offer their people. This trend is consistent with the previous year’s statistics, which covered a period from April through the following March and July, showing consistent upward changes in pay of around 4-6% growth per annum.

What is the impact of inflation on real earnings?

Inflation continues to significantly affect the average UK salary in real terms, impacting what people actually earn… When we discuss real earnings, we mean the gross wage figure adjusted for the rate of inflation, which is the primary measure of the cost of living. This calculation reveals the true purchasing power of the money your people earn each month. A 5% pay rise means very little for an employee’s monthly budget if the annual inflation rate is 4.5%, as the real wage growth is minimal. This puts a financial strain on your workforce, as people feel the pinch each month, even after receiving a salary increase. As a manager, it’s vital to consider the total compensation package, not just the gross pay figure or the average weekly wage. This economic period continues to demand a strategic approach to money, wages, and total reward.

What are the key sector and demographic differences?

The average UK salary is not a single number. The data varies significantly across the market. Understanding these differences by using all available sources and estimates is key to making competitive offers for jobs at every level.

Private vs. public sector pay

There are notable changes and differences between the private sector and the public sector. This year’s data shows that public sector earnings growth has been strong, with a growth rate of around 5.5%. The private sector pay growth rate is slightly lower, at around 5%, which impacts the broader labour market, as the two sectors compete for talent across all jobs and at every salary level.

Regional pay disparities in Britain

It’s also vital for a manager to consider the significant regional differences in the UK labour market. The average salary in London, for instance, is considerably higher than in other parts of Britain. This disparity affects the market rate for similar jobs, and must be factored into your pay strategy to attract local talent for your workforce.

Estimates elaborated from data in the Annual Survey of Hours and Earnings (ASHE) of the Office for National Statistics.

The influence of age and experience

Age and career level remain huge factors in total earnings. The ONS survey data shows trends in both weekly and monthly pay, giving a clear picture of the average salary per month. Earnings typically peak for people in their 40s, reflecting a career’s worth of experience. A manager at this age level will almost always earn more money than someone at a junior level.

Estimates elaborated from data in the Annual Survey of Hours and Earnings (ASHE) of the Office for National Statistics.

 What does this mean for your business?

To stay competitive in the current labour market, your approach to pay must be proactive and data-driven.

• Benchmark your salaries: Regularly benchmark every salary in your organization against the latest market data. This involves using reliable sources and survey statistics to ensure your pay rates are competitive for every job level, from entry-level to senior manager.

• Communicate total reward: Clearly communicate the full value of your compensation package and how it compares to the average UK salary in your sector. This goes beyond the gross annual salary and weekly wage to include bonuses, benefits, and pension contributions that people earn. The total figure is often much higher than the base pay.

• Focus on more than money: While competitive pay is crucial, remember that your people also value career growth and a great corporate culture. Invest in their development over time.