The median annual earnings in the United Kingdom was 37,430 British pounds per year in 2024. Annual earnings varied significantly by region, ranging from 47,455 pounds in London to 32,960 pounds in the North East. Along with London, two other areas of the UK had median annual earnings above the UK average; South East England, and Scotland, at 39,038 pounds and 38,315 pounds respectively. Regional Inequality in the UK Various other indicators highlight the degree of regional inequality in the UK, especially between London and the rest of the country. Productivity in London, as measured by output per hour, was 26.2 percent higher than the UK average. By comparison, every other UK region, except the South East, fell below the UK average for productivity. In gross domestic product per head, London was also an outlier. The average GDP per head in the UK was just over 37,000 pounds in 2023, but for London it was almost 64,000 pounds. Again, the South East's GDP per head was slightly above the UK average, with every other region below it. Within London itself, there is also a great degree of inequality. In 2023, for example, the average earnings in Kensington and Chelsea were 964 pounds per week, compared with 675 pounds in Barking and Dagenham. Wages continue to grow in 2025 In March 2025, weekly wages in the UK were growing by around 5.6 percent, or 1.8 percent when adjusted for inflation. For almost two years, wages have grown faster than inflation after a long period where prices were rising faster than wages between 2021 and 2023. This was due to a sustained period of high inflation in the UK, which peaked in October 2022 at 11.1 percent. Although inflation started to slow the following month, it wasn't until June 2023 that wages started to outpace inflation. By this point, the damage caused by high energy and food inflation had led to the the worst Cost of Living Crisis in the UK for a generation.

Wages for regular pay in the United Kingdom grew by approximately 5.2 percent in April 2025, although when adjusted for inflation, wages for regular pay only grew in real terms by 1.4 percent. Twenty months of inflation outpacing wages Between November 2021 and June 2023 inflation was higher than wage growth in the UK, resulting in falling real terms earnings throughout this 20-month period. While UK inflation peaked at 11.1 percent in October 2022, it was not until April 2023 that it fell below double figures, and not until May 2024 that it reached the Bank of England's target of two percent. Forecasts from the Autumn 2024 budget predict that the annual UK inflation will for 2024 will be 2.5 percent, down from 7.3 percent in 2023 and 9.1 percent in 2022. Due to high inflation, the UK's minimum wage also rose quite significantly during this period, with the "main" rate increasing from 8.91 pounds per hour in 2021 to 12.21 pounds per hour in 2025. Average earnings and gender pay gap For full-time workers in the United Kingdom, the median average annual earnings was 37,430 British pounds in 2024, compared with 34,663 pounds in 2023. In London, average earnings were significantly higher than the rest of the country, at 47,455 pounds. Just two other areas of the United Kingdom, the South East and Scotland, had annual salaries above the UK average. North East England had the lowest average salary, at 32,960 pounds. As of 2024, the gender pay gap for median gross hourly earnings in the UK was 13.1 percent for all workers, falling to seven percent for full-time workers and -3 percent for part-time workers. Compared with 1997, when the gender pay gap was 27.5 percent for all workers, there has been a degree of progress, although, at current trends, it will be some time before the gap is closed entirely.

In July 2025, the weekly pay of subcontractor trade workers in the construction sector in the East of England was somewhat higher than in London. North East was the region with the lowest salary in England and Wales at *** British pounds per week. Meanwhile, the average weekly wage of construction workers in Wales was ***** British pounds. Meanwhile, the weekly earnings in the construction sector in the UK as a whole amounted to *** British pounds in April 2025.

Update 29-04-2020: The data is now split into two files based on the variable collection frequency (monthly and yearly). Additional variables added: area size in hectares, number of jobs in the area, number of people living in the area.

Context

I have been inspired by Xavier and his work on Barcelona to explore the city of London! 🇬🇧 💂

Content

The datasets is primarily centered around the housing market of London. However, it contains a lot of additional relevant data: - Monthly average house prices - Yearly number of houses - Yearly number of houses sold - Yearly percentage of households that recycle - Yearly life satisfaction - Yearly median salary of the residents of the area - Yearly mean salary of the residents of the area - Monthly number of crimes committed - Yearly number of jobs - Yearly number of people living in the area - Area size in hectares

The data is split by areas of London called boroughs (a flag exists to identify these), but some of the variables have other geographical UK regions for reference (like England, North East, etc.). There have been no changes made to the data except for melting it into a long format from the original tables.

Acknowledgements

The data has been extracted from London Datastore. It is released under UK Open Government License v2 and v3. The underlining datasets can be found here: https://data.london.gov.uk/dataset/uk-house-price-index https://data.london.gov.uk/dataset/number-and-density-of-dwellings-by-borough https://data.london.gov.uk/dataset/subjective-personal-well-being-borough https://data.london.gov.uk/dataset/household-waste-recycling-rates-borough https://data.london.gov.uk/dataset/earnings-place-residence-borough https://data.london.gov.uk/dataset/recorded_crime_summary https://data.london.gov.uk/dataset/jobs-and-job-density-borough https://data.london.gov.uk/dataset/ons-mid-year-population-estimates-custom-age-tables

Cover photo by Frans Ruiter from Unsplash

Inspiration

The dataset lends itself for extensive exploratory data analysis. It could also be a great supervised learning regression problem to predict house price changes of different boroughs over time.

Analysis of ‘Housing in London’ provided by Analyst-2 (analyst-2.ai), based on source dataset retrieved from https://www.kaggle.com/justinas/housing-in-london on 28 January 2022.

--- Dataset description provided by original source is as follows ---

Update 29-04-2020: The data is now split into two files based on the variable collection frequency (monthly and yearly). Additional variables added: area size in hectares, number of jobs in the area, number of people living in the area.

Context

I have been inspired by Xavier and his work on Barcelona to explore the city of London! 🇬🇧 💂

Content

The datasets is primarily centered around the housing market of London. However, it contains a lot of additional relevant data: - Monthly average house prices - Yearly number of houses - Yearly number of houses sold - Yearly percentage of households that recycle - Yearly life satisfaction - Yearly median salary of the residents of the area - Yearly mean salary of the residents of the area - Monthly number of crimes committed - Yearly number of jobs - Yearly number of people living in the area - Area size in hectares

The data is split by areas of London called boroughs (a flag exists to identify these), but some of the variables have other geographical UK regions for reference (like England, North East, etc.). There have been no changes made to the data except for melting it into a long format from the original tables.

Acknowledgements

The data has been extracted from London Datastore. It is released under UK Open Government License v2 and v3. The underlining datasets can be found here: https://data.london.gov.uk/dataset/uk-house-price-index https://data.london.gov.uk/dataset/number-and-density-of-dwellings-by-borough https://data.london.gov.uk/dataset/subjective-personal-well-being-borough https://data.london.gov.uk/dataset/household-waste-recycling-rates-borough https://data.london.gov.uk/dataset/earnings-place-residence-borough https://data.london.gov.uk/dataset/recorded_crime_summary https://data.london.gov.uk/dataset/jobs-and-job-density-borough https://data.london.gov.uk/dataset/ons-mid-year-population-estimates-custom-age-tables

Cover photo by Frans Ruiter from Unsplash

Inspiration

The dataset lends itself for extensive exploratory data analysis. It could also be a great supervised learning regression problem to predict house price changes of different boroughs over time.

--- Original source retains full ownership of the source dataset ---

In the three months to April 2025, average weekly earnings in the United Kingdom grew by 5.2 percent, while pay including bonuses grew by 5.3 percent, when compared with the same period leading to April 2024. In the same month, the inflation rate for the Consumer Price Index was 3.5 percent, indicating that wages were rising faster than prices that month. Average salaries in the UK In 2024, the average salary for full-time workers in the UK was 37,430 British pounds a year, up from 34,963 in the previous year. In London, the average annual salary was far higher than the rest of the country, at 47,455 pounds per year, compared with just 32,960 in North East England. There also still exists a noticeable gender pay gap in the UK, which was seven percent for full-time workers in 2024, down from 7.5 percent in 2023. Lastly, the monthly earnings of the top one percent in the UK was 15,887 pounds as of November 2024, far higher than even that of the average for the top five percent, who earned 7,641 pounds per month, while pay for the lowest 10 percent of earners was just 805 pounds per month. Waves of industrial action in the UK One of the main consequences of high inflation and low wage growth throughout 2022 and 2023 was an increase in industrial action in the UK. In December 2022, for example, there were approximately 830,000 working days lost due to labor disputes. Throughout this month, workers across various industry sectors were involved in industrial disputes, such as nurses, train drivers, and driving instructors. Many of the workers who took part in strikes were part of the UK's public sector, which saw far weaker wage growth than that of the private sector throughout 2022. Widespread industrial action continued into 2023, with approximately 303,000 workers involved in industrial disputes in March 2023. There was far less industrial action by 2024, however, due to settlements in many of the disputes, although some are ongoing as of 2025.

Annual estimates of paid hours worked and earnings for UK employees by sex, and full-time and part-time, by work-based Parliamentary constituency.

Snapshot img

Compensation Software Market Size 2025-2029

The compensation software market size is forecast to increase by USD 7.83 billion, at a CAGR of 11.6% between 2024 and 2029.

The market is driven by the increasing adoption of pricing strategies by companies in response to the growing demand for integrated Human Capital Management (HCM) solutions. This trend reflects the evolving needs of businesses seeking to streamline their HR processes and gain a competitive edge through data-driven compensation decisions. However, high implementation and maintenance costs pose a significant challenge for market participants. These expenses can deter smaller organizations and limit the market's growth potential. To capitalize on opportunities and navigate challenges effectively, companies must focus on offering cost-effective solutions while maintaining the necessary functionality and integration capabilities.
By addressing the cost concern, companies can expand their customer base and strengthen their market position. Additionally, continuous innovation and investment in technology will be crucial to meet the evolving demands of businesses and maintain a competitive edge.

What will be the Size of the Compensation Software Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by the dynamic nature of business environments and the need for innovative solutions. Seamlessly integrated offerings, such as API integrations, machine learning, reporting and dashboards, HRS integration, deferred compensation, compensation procedures, variable pay, compensation reviews, real-time data, compensation design, security and compliance, incentive programs, mobile compensation, and performance management, are essential for organizations to effectively manage their talent and rewards strategies. Compensation software solutions are increasingly being adopted across various sectors to streamline processes, ensure compliance, and optimize costs. These solutions enable organizations to design and implement compensation strategies, policies, and philosophies that align with their business objectives.

Data visualization and analytics are critical components of compensation software, providing valuable insights into compensation trends and patterns. Machine learning algorithms and predictive analytics enable organizations to make data-driven decisions, optimize compensation structures, and retain top talent. Security and compliance are paramount in the market. Solutions must adhere to the latest regulations and standards to ensure data privacy and security. Integrations with HRIS, payroll, benefits administration, and performance management systems further enhance the functionality of compensation software. Compensation software solutions offer user-friendly interfaces, enabling easy access to critical information. Real-time data and automated workflows enable organizations to make timely compensation adjustments and respond to market changes.

Incentive programs, bonuses, and performance-based pay are essential components of compensation software, enabling organizations to align employee compensation with performance and business objectives. Employee engagement, satisfaction, and development are also key areas of focus, with solutions offering training, career pathing, and communication tools. Budgeting and forecasting capabilities enable organizations to optimize costs and plan for future compensation needs. Cloud-based solutions offer flexibility and scalability, while workflow automation streamlines processes and improves efficiency. Compensation software solutions continue to evolve, with new features and capabilities emerging to meet the changing needs of organizations. The market is expected to remain dynamic, with ongoing innovation and competition driving growth and development.

How is this Compensation Software Industry segmented?

The compensation software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Large enterprises
  SMEs


Deployment

  Cloud-based
  On-premises


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By End-user Insights

The large enterprises segment is estimated to witness significant growth during the forecast period.

In the dynamic business landscape, compensation software solutions have emerged as essential tools for managing intricate compensation strategies and policies. Large enterprises dominate the mark

This statistic shows the average income ratings in the United Kingdom in 2018, by region. Greater London had the highest rating for income in this year, compared with Northern Ireland, which had the lowest score. The four regions with the highest income scores were all located in Southern England while Northern England had two of the lowest scoring regions in this year (Yorkshire and the North East.)

Renters in the UK spent on average 32.5 percent of their income on rent as of January 2025. Scotland and Yorkshire and Humber were the most affordable regions, with households spending less than 28 percent of their gross income on rent. Conversely, London, South West, and South East had a higher ratio. Greater London is the most expensive region for renters Greater London has a considerably higher rent than the rest of the UK regions. In 2024, the average rental cost in Greater London was more than twice higher than in the North West or West Midlands. Compared with Greater London, rent in the South East region was about 600 British pounds cheaper. London property prices continue to increase In recent years, house prices in the UK have been steadily increasing, and the period after the COVID-19 pandemic has been no exception. Prime residential property prices in Central London are forecast to continue rising until 2027. A similar trend in prime property prices is also expected in Outer London.

This statistic shows the share of gross household income from state support in England in fiscal year 2017/18, by region. In this fiscal year, ** percent of household income in London was financed by state support, whereas the respective number in the North East was ** percent.

In September 2024, the weekly pay of subcontractor trade workers in the construction sector in the East of England was somewhat higher than in London. North East was the region with the lowest salary in England and Wales at 760 British pounds per week. Meanwhile, the average weekly wage of construction workers in Wales was 981 British pounds. Meanwhile, the weekly earnings in the construction sector in the UK as a whole amounted to 739 British pounds in March 2024.

This statistic shows the house price to income ratio in England in 2018, by region. With the average house price to income ratio in England being ** it can be seen from the statistic that, at a ratio of **, London house prices to incomes are far higher than the national average. At the other end of the scale is the North East of England, where the average house price to income ratio is ***, meaning that the average house is *** times more than the average annual income.

This statistic shows median earnings for tech specialists in the United Kingdom (UK) 2014, by region. Tech specialists in London had the highest median wages with 41,700 British pounds. Tech specialists in the North East had the lowest median earnings with 29,200 British pounds.