News in-depth 24th April 2025

Understanding Annual Salary Data

As inflation shows signs of retreating and discussion is about wages rising, workers are finally being told what they’ve waited years to hear. Their pay is going further, but taking a closer look at the numbers reveals a more complex and uneven reality. The information has been very difficult to collate as it depends so much on what you read and what research is being offered. How your salary is calculated, who you are and where you live, changes the way you view your salary dramatically.

According to the latest data from the Office for National Statistics (ONS), the average annual salary for UK workers is £31,602, rising to £37,430 for full-time roles. Yet other reports cite a mean weekly wage of £711, which amounts to nearly £37,000 a year, a noticeable £2,000 jump from last year. These figures aren’t technically contradictory, but they highlight the inconsistency between median vs. mean, regular pay, and whether bonuses are included.

This confusion matters. For workers trying to understand their income or negotiate a pay increase, these varying figures can distort what counts as “average.” Should you feel underpaid if you earn £35,000? Is £40,000 “above average”? It depends entirely on how the data is produced!!

What, I suppose is less debatable is that, regular pay has increased by 5.9% in the three months to January, outstripping the 2.8% inflation rate, giving workers their first taste of real income growth in years. For a workforce battered by the cost-of-living crisis, this is long-awaited progress. But not everyone is feeling it.

A Two-Speed Pay Recovery

Where you live in the UK plays a huge role. Workers in London are averaging £853 a week, far outpacing the £661 earned in the North East. Meanwhile, pay growth in the private sector slightly outpaces that in the public sector, even though both saw similar year-on-year gains. But again this is open to debate.

And while average earnings are rising overall, they don’t tell the full story. The UK’s 3 million lowest-paid workers, many of whom now earn the National Living Wage of £12.21, still struggle to cover basic costs. These workers, disproportionately younger and in part-time roles, are not benefiting equally from national wage growth trends.

Experience Matters—Until It Doesn’t

Salaries continue to follow a familiar arc: low in your teens and 20s, rising through your 30s and peaking in your 40s. But from your 50s onward, incomes often decline. Health issues, reduced hours, or early retirement play a role. And while the retirement age shifts upward, many older workers rely more on pensions than pay. a transition that often means less income.

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So, is your salary really rising? Statistically, yes. But the bigger question is: by how much and compared to whom?

Headline figures offer a sense of optimism, but they often mask the unevenness beneath. For some, 2025 marks the start of financial recovery. For others, especially those earning the least, meaningful progress still feels out of reach.

Until pay growth becomes both widespread and equitable, statistics alone won’t tell the whole story.

The WEU will continue to keep its members updated on UK salaries