In April 2025, the UK minimum wage for adults over the age of 21 in will be 12.21 pounds per hour. For the 2025/26 financial year, there will be four minimum wage categories, three of which are based on age and one for apprentice workers. Apprentices, and workers under the age of 18 will have a minimum wage of 7.55 pounds an hour, increasing to ten pounds for those aged 18 to 20. When the minimum wage was first introduced in 1999, there were just two age categories; 18 to 21, and 22 and over. This increased to three categories in 2004, four in 2010, and five between 2016 and 2023, before being reduced down to four in the most recent year. The living wage The living wage is an alternative minimum wage amount that employers in the UK can voluntarily pay their employees. It is calculated independently of the legal minimum wage and results in a higher value figure. In 2023/24, for example, the living wage was twelve pounds an hour for the UK as a whole and 13.15 for workers in London, where the cost of living is typically higher. This living wage is different from what the UK government has named the national living wage, which was 10.42 in the same financial year. Between 2011/12 and 2023/24, the living wage has increased by 4.80 pounds, while the London living wage has grown by 4.85 pounds. Wage growth cancelled-out by high inflation 2021-2023 For a long period between the middle of 2021 and late 2023, average wage growth in the UK was unable to keep up with record inflation levels, resulting in the biggest fall in disposable income since 1956. Although the UK government attempted to mitigate the impact of falling living standards through a series of cost of living payments, the situation has still been very difficult for households. After peaking at 11.1 percent in October 2022, the UK's inflation rate remained in double figures until March 2023, and did not fall to the preferred rate of two percent until May 2024. As of November 2024, regular weekly pay in the UK was growing by 5.6 percent in nominal terms, and 2.5 percent when adjusted for inflation.

For workers under the age of 18, the national minimum wage in the United Kingdom will be 7.55 British pounds per hour from April 2025 onwards. This is an increase of 1.15 pounds when compared with 2024 when the minimum wage for this age group was 6.40 pounds. This particular minimum wage category was three pounds when it was first introduced in 2004, five years after the launch of the minimum age for workers aged 19 or over. Minimum wage rates history In 1999, when the UK minimum wage was first introduced, there were two different wage rates; one for those aged 18 to 21, and another for those aged 22 or over. These two rates were joined by an under 18 rate in 2004, and then in 2010 the minimum wage was reorganized to include a rate for apprentice workers, while the top rate was increased to include workers aged 21. As of 2024, after several further waves of reorganization, there are four different wage categories. For workers aged 21 and over, the minimum hourly wage is 11.44 pounds, falling to 8.6 pounds for 18 to 20-year-olds, and 6.4 pounds for under 18s and apprentices. Wages growing again in 2024 In April 2024, weekly wages were growing by approximately 2.6 percent, the eleventh-consecutive month of wage growth following a long period of wages falling. High inflation throughout 2022 and 2023, meant that prices were rising faster than pay for a long twenty-month period between November 2021 and June 2023. With inflation down, and wages still growing, there are hopeful signs the UK might be over the worst of the Cost of Living Crisis, ongoing since late 2021. As of May 2024, however, over half of UK households were still reporting an increase in their living costs, relative to the previous month.

From April 2025 onwards, the UK's main national minimum wage category, the national living wage, will rise to 12.21 pounds per hour, up from 11.44 pounds per hour in the previous financial year. This amount will apply to workers aged 21 and over, compared with 2022 and 2023 when it was only for workers aged 23 and over, and for those aged 25 and over between 2016 and 2021. The main minimum wage from 2010 to 2015 was the 21+ rate, and 22+ rate between 1999 and 2009. Evolution of the minimum wage Since its introduction in 1999, the minimum wage has had various rate categories, usually based on age. For the first five years, there were two categories, one for workers 18 to 21, and another for workers aged 22 and over. In 2004, a minimum wage for under 18s was introduced, and between 2010 and 2015 there were three rates based on age, and one for apprenticeships. Another age based-rate was added in 2016, but from 2024 onwards, the model will revert to four rate categories overall. In addition to the legal minimum wage, there is also a voluntary real living wage, which for 2024/25 is 12.6 pounds per hour, rising to 13.85 pounds per hour for workers in London. Wages continue to outpace inflation in 2024 Since July 2023, wages have grown faster than inflation in the UK with December 2024 seeing regular weekly earnings grow by 5.9 percent, compared with the CPI inflation rate of 2.5 percent that month. For almost two years between November 2021 and June 2023, wage growth struggled to keep up with inflation, with the biggest gap occurring in October 2022 when inflation peaked at 11.1 percent. The fall in real earnings in one of the most important factors in the UK's ongoing cost of living crisis. At the height of the crisis, around 91 percent of UK households were reporting a monthly increase in their cost of living, with this falling to 46 percent by March 2024.

The voluntarily paid living wage in the United Kingdom for 2024/25 is 12.6 pounds per hour, with this rising to 13.85 pounds per hour for workers in London. For the same year the legal minimum wage for those over the age of 21 was 11.44 pounds per hour.

The median hourly earnings for full-time employees in the United Kingdom was 18.72 British pounds in 2024, compared with 17.48 pounds in the previous year. At the start of this provided time period, in 1997, the average hourly wage in the UK was 7.92 pounds per hour, rising to more than ten pounds per hour by 2003, and above 15 pounds per hour by 2020. Minimum and living wage in the UK In the United Kingdom, employers are expected to pay their employees a minimum wage that is determined by how old they are. Under 18s for example, had a minimum wage of 5.28 British pounds in 2023, with the figure increasing to 7.49 pounds those aged 18 to 20, 10.18 for 21 to 22 year old's, and 10.42 for those aged 23 and over. There is also a voluntarily paid living Wage that employers can choose to pay their workers. For the 2023/24 financial year this was twelve pounds an hour, rising to 13.15 pounds an hour for workers based in London. Icelandic the highest earners in Europe Iceland had the highest average annual wage in the Europe in 2022 at around 79,500 U.S dollars. This was followed by Luxembourg at 78,300 dollars, Switzerland at 72,990 and Belgium at 64,850 dollars. The United Kingdom’s average annual wage amounted to around 53,985 U.S dollars in the same year. In this year, the country with the lowest annual salary in Europe was Greece, at 25,980 pounds per year.

Abstract copyright UK Data Service and data collection copyright owner.

The Apprenticeship Pay Survey, 2014 was carried out by IFF Research on behalf of the Department for Business, Innovation and Skills (BIS) and involved 9,367 telephone interviews with apprentices in Great Britain. Apprenticeships are a structured programme of training, consisting of paid employment and learning, which give people the opportunity to work for an employer, learn on the job, build up knowledge and skills, and gain recognised qualifications within a specific occupation or trade. Apprenticeships are administered by the Skills Funding Agency (SFA) in England, Skills Development Scotland (SDS) in Scotland and the Welsh Government (WG) in Wales.

The National Minimum Wage is the minimum pay per hour almost all workers in the UK are entitled to by law. As well as separate minimum rates for those aged under 18, 18-20 and 21 or over, there is a distinct National Minimum Wage rate for apprentices aged 16 to 18 and those aged 19 or over who are in their first year of the Apprenticeship (all other apprentices are entitled to the National Minimum Wage for their age). At the time the survey was conducted The National Minimum Wage rate per hour for apprentices was £2.68 for those aged 16-18 or in the first year of their Apprenticeship, £5.03 for those in their second year or later and aged 19-20, and £6.31 for those in their second year or later and aged 21 and over.

The main aim of this survey was to provide an accurate and up-to-date picture of the pay of the apprentice population, both across Great Britain, and within England, Scotland and Wales, in order to assist with development and monitoring of Apprenticeship and National Minimum Wage policy. For example, evidence from the Apprenticeship Pay Survey contributes to the Low Pay Commission’s recommendations to Government for the Apprenticeship minimum wage rate.

Further information is available from the Apprenticeship Pay Survey, 2014 webpage.

The Apprenticeship Pay Survey was also conducted in 2005, 2007, 2011 and 2012, but only data from 2014 onwards are available from the UK Data Service. The 2016 survey is held under SN 8204, which also includes a combined 2014 and 2016 file.


Main Topics:

The research was conducted with Apprentices across Great Britain. Specifically, the survey sought to establish:

• the wages employers are paying apprentices
• the number of hours apprentices spend working and undertaking training, in order to establish their hourly wage rates
• the range of wage rates and differences by type of apprentice, for example by gender, age, framework, ethnicity, disability, level, number of years since starting the programme and prior employment status

The median annual earnings for full-time employees in the United Kingdom was approximately 37,430 British pounds in 2024, compared with 34,963 pounds in the previous year. At the start of the provided time period, in 1999, the average full-time salary in the UK was 17,803 pounds per year, with median earnings exceeding 20,000 pounds per year in 2002, and 30,000 by 2019. Wages continue to grow faster than inflation in 2024 Between November 2021 and July 2023 inflation was higher than wage growth in the UK, with wages still outpacing inflation as of April 2024. At the peak of the recent wave of high inflation in October 2022, the CPI inflation rate reached a 41-year-high of 11.1 percent, wages were growing much slower at 6.1 percent. Since that peak, inflation remained persistently high for several months, only dropping below double figures in April 2023, when inflation was 8.7 percent, down from 10.1 percent in the previous month. For 2023 as a whole, the average annual rate of inflation was 7.3 percent but is forecast to fall to 2.2 percent in 2024, and 1.5 percent in 2025. Highest and lowest-paid occupations As of 2023, the highest-paid occupation in the UK was that of Chief Executives and Senior Officials, who had an average weekly pay of approximately, 1,576 pounds. By contrast, the lowest-paid occupation that year was that of retail cashiers, and check-out operators, who earned approximately 383 pounds a week. For industry sectors as a whole, people who worked full-time in the electricity, gas, steam and air conditioning supply sector had the highest average earnings, at 955 pounds a week, compared with 505 pounds a week in the accommodation and food services sector, the lowest average earnings in 2023.

Annual estimates of the number and proportion of UK jobs paying below various 10 pence thresholds and the National Minimum Wage and National Living Wage, by employee age group, from 1998 to 2023.

The Annual Survey of Hours and Earnings (ASHE) is the most comprehensive source of earnings information in the United Kingdom. It provides information about the levels, distribution and make-up of earnings and hours paid for employees by gender and full-time/part-time working. Estimates are available for various breakdowns including industries, occupations, geographies and age-groups within the UK. ASHE is used to produce hours and earnings statistics for a range of weekly, annual and hourly measures. ASHE is the official source of estimates for the number of jobs paid below the national minimum wage. ASHE is also used to produce estimates of the proportions of jobs within workplace pension categories. ASHE is based on a one per cent sample of employee jobs taken from HM Revenue & Customs (HMRC) PAYE records. Information on earnings and hours is obtained from employers and treated confidentially. ASHE does not cover the self-employed nor does it cover employees not paid during the reference period. The datasets used for the 2011 datasets are the Revised datasets and are published a year after the provisional. The dataset is split into several different categories including all employees, all male employees and all female employees. Datasets are further categorised by mode of working i.e. Full or Part Time. Full datasets are available from The Office for National Statistics. 2014-06-13T14:25 Licence: None

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 33.2 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 31,947 pounds in 2021, but for London it was 56,431 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 2021, for example, the average earnings in the historic City of London borough were 1,138 pounds per week, compared with 588 pounds in Redbridge, a borough in the North East of London. Wages finally catch up with inflation in 2023 After the initial economic disruption caused by the COVID-19 pandemic subsided, wages began to steadily grow in the UK. This reached a peak in June 2021, when weekly wages for regular pay were growing at 7.3 percent, or 5.2 percent when adjusted for inflation. By that November, however, prices began to rise faster than wage growth, with inflation surging throughout 2022. In October 2022, for example, while regular pay was growing by 6.1 percent, the inflation rate had surged to 11.1 percent, Although inflation peaked in that 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 has precipitated the worst Cost of Living Crisis in the UK for a generation.

In the three months to December 2024, average weekly earnings in the United Kingdom grew by 5.9 percent, while pay including bonuses also grew by six percent, when compared with the same period in 2023. In the same month, the inflation rate for the Consumer Price Index was 2.5 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.

Part-time employees in the United Kingdom earned an average annual salary of 13,910 British pounds in 2024, compared with people who worked full-time who earned around 37,430 pounds a year.

This statistic illustrates the average wage per month in select countries in 2017 and with a projection to 2040. In 2040, it is estimated that the average monthly wage in the United States will be 4,820 U.S. dollars, an increase from 3,970 U.S. dollars in 2017.

As of December 2024, there were around 4.39 million self-employed workers in the United Kingdom. During this provided time-period, self-employment in the UK has grown steadily, from a low of just 3.2 million in December 2000, to a peak of over five million at the start of 2020. After the COVID-19 pandemic, however, self-employment has fallen to levels not seen since the middle of 2015 and has struggled to recover to its pre-pandemic peak. Demographics of the self-employed Between 1992 and 2023, there has consistently been more men self-employed than women, with recent figures showing that over 2.74 million men, and 1.62 million women were self-employed. As of 2022, the most numerous self-employed age group was those aged between 45 and 54 years old, reaching just over 1.3 million individuals, indicating that middle-aged people have the highest self-employment rates. In the same year, around 757,000 self-employed workers in the UK were based in the London region, with a further 644,000 based in South East England. Self-employment support scheme In response to the COVID-19 pandemic, the UK government unveiled various measures to mitigate the economic costs to businesses and individuals. For self-employed workers, this manifested itself as the Self-Employment Income-Support Scheme, which was in its third iteration, or tranche, by December 2020. During the first tranche, which ran from March to July, there were 2.7 million claims made in total, with claims to the second and third tranches numbering 2.4 million and 1.7 million respectively. As of December 13, 2020, the overall value of these claims amounted to 14.5 billion British pounds.