How much do people really earn in the UK? The most reliable answer comes from the Office for National Statistics' Annual Survey of Hours and Earnings (ASHE), which gathers data from hundreds of thousands of payslips. Here are the main figures, updated to the latest survey available, and how gross pay becomes take-home pay.
Median pay
In April 2025 median gross annual pay for full-time employees was £39,039, about £3,250 a month. Median means that half of workers earn more and half less: it is a more realistic indicator than the arithmetic mean, which, pushed up by very high incomes in finance, exceeds £40,000. Including all employees, part-timers too, the median falls to £32,890, while median hourly pay is £18.
Differences by age and sex
Pay rises quickly between 20 and 40 and peaks between 40 and 49, then falls, partly because people move to part-time work. The gender pay gap has narrowed over the past twenty years: among full-time employees it is below 7%, but across all employees it is still around 13%, because women more often work part time and in lower-paid sectors.
Regional differences
London is a world apart: its median pay is the highest in the country, but so is its cost of living. Next come the South East and East of England, the areas from which people commute into the capital. Scotland, thanks to the energy and financial sectors in Edinburgh and Aberdeen, is above average; Wales, Northern Ireland, Yorkshire and above all the North East of England have the lowest pay. These differences also weigh on politics: the north-south divide is one of the big themes of British debate (see inequality).
The minimum wage
The UK has had a national minimum wage since 1999. Today the most important rate is the National Living Wage, for workers aged 21 and over: since April 2026 it has been £12.71 an hour. For 18-20-year-olds it is £10.85, lower for under-18s and apprentices. In ten years the minimum wage has risen by more than 75%, far more than average pay, and the share of low-paid workers is now at a record low. Full time (37.5 hours a week) it is worth about £24,800 gross a year.
From gross to net
In England, Wales and Northern Ireland the system is simple. The first £12,570 is tax-free (the personal allowance); income between £12,570 and £50,270 is taxed at 20%, between £50,270 and £125,140 at 40%, and above that at 45%. On top come National Insurance contributions, 8% on the same band and 2% above £50,270. In Scotland income tax rates differ, with six bands from 19% to 48%. Indicative examples for 2026-27 in England:
| Gross annual pay | Tax and contributions | Net per year | Net per month |
|---|---|---|---|
| £24,785 (full-time minimum wage) | about £3,420 | about £21,365 | about £1,780 |
| £39,039 (full-time median) | about £7,410 | about £31,630 | about £2,635 |
| £50,000 | about £10,480 | about £39,520 | about £3,295 |
Tax is deducted directly from pay through the PAYE system (Pay As You Earn), and most employees never have to file a tax return. Those with a student loan repay a percentage of income above a threshold, and most contracts include a compulsory pension contribution of at least 5% from the worker.
Real wages: the lost decade
The main problem for British workers is not so much the level of pay as its growth. After the 2008 crisis real wages, adjusted for inflation, stayed essentially flat for more than a decade, something without precedent since the 19th century. In 2022-2023 double-digit inflation pushed them down again; since 2024 they have been growing. In autumn 2026 regular pay growth was 3.7% a year, just above inflation. To see what this money is worth, read the cost of living and housing and rents; back to living in the UK.