How much should your salary increase per year in the UK?

The average annual pay rise in the U.K. stands at just over 3.6% (according to the Office for National Statistics), a figure which is narrowly above the inflation rate and thus allowing for a quality of life increase for employers.

What is a normal salary increase per year in the UK?

Annual growth in real terms, adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH), was 2.2% for regular pay and 2.1% for total pay. Annual average regular earnings growth was 6.1% for the private sector and 5.3% for the public sector.

Is a 3% pay rise acceptable?

A common adjustment is in the 3% to 5% range. Now, that doesn't always mean you shouldn't ask for more, but it's important to keep it reasonable.

Is a 2 pay rise good in the UK in 2025?

This finding comes from responses given by 136 employers yet to decide their 2025 pay award. Nearly two-fifths (37%) of this sample said that the main pay rise for staff in 2025 is likely to be worth between 2% and 2.99%, while just 14% feel that their pay award will be worth 4% or more.

Is a 10% pay rise good?

A 10% raise is well above average, but it might not be unreasonable. 10 Depending on how long you've been with the company and when you last received a raise, you might be entitled to far more compensation than you're currently receiving.

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What is the average pay increase for 2025?

Average pay rise in 2025 – per company size

Companies with a small headcount (less than 100 employees), mid-sized (100-500 companies), and large headcount (500+ employees) all have an average 5% salary increase between March 2024 and March 2025.

What is a typical pay raise?

As a general guideline, annual raises are typically a 3–5% increase for cost-of-living adjustments or merit-based increases. However, in high-demand industries or regional job markets, a 6–10% increase may be necessary to stay competitive and retain good talent.

What is a good UK salary in 2025?

Average weekly earnings (AWE) were estimated at £722 for total earnings and £677 for regular earnings in May 2025. Figure 1 shows that AWE have steadily increased over the long term.

How often should I get a pay rise?

You're not required by law to grant pay rises every year, but regular (often annual) pay reviews are best practice to stay competitive and reduce legal risks. Inflation-linked pay rises aren't mandatory, but are increasingly common in many sectors.

Should my salary increase with inflation?

Inflation is the amount that the cost of goods and services increases by each year. To be able to purchase the same amount of goods or services in the future, your annual salary needs to grow at the same rate as inflation.

Can you legally refuse a pay rise?

A pay rise is an increase in the amount of money an employee gets for doing their job. There is no legal requirement for an employer to give a pay rise to an employee unless: they earn the minimum wage and it increases.

Is it better to get a bonus or raise?

Receiving a bonus can be a good way to earn extra income in a short amount of time. This can be particularly helpful if you have sudden, unexpected expenses, vacation plans or investment ideas. Bonuses typically don't take as long as raises to become an option.

How much should I be earning at 30?

The average London salary by age is:

Ages 18-21: £20,837. Ages 22-29: £30,092. Ages 30-39: £38,415. Ages 40-49: £42,508.

How do I show I deserve a raise?

Is 70k a good salary in the UK?

Earning a 70k salary in the UK is generally considered a good income that provides the means to cover living costs, including housing, utilities, transportation, and leisure activities.

What salary is middle class in the UK?

The Office for National Statistics reports that the median annual salary in 2024 was around £34,000. This means half of UK workers earn below this amount, while the other half earn more. However, being middle class often means earning above the median, typically between £40,000 and £70,000.

What is the average UK salary for a 40 year old?

That explains why the average UK salary goes from £10,910 for 16-17 year olds all the way up to £35,904 for 40-49 year olds. Yet then the trend reverses: the average salary goes down to £33,231 for people between 50-59 and drops further to £28,854 for people over 60.

What is the average pay increase for 2025 in the UK?

Using CPI real, annual regular pay growth was 1.5% in April to June 2025. This is down from 1.8% in the previous three-month period. It was last lower than 1.5% in August to October 2023, when it was 1.2%. Annual real total pay growth (using CPI) was 1.1% in April to June 2025.

Should you get a raise every year?

Every worker is different but most find that they should expect a raise every 1-2 years. However, comparing your salary against those of your coworkers and industry as a whole will highlight whether you are underpaid or not.

What is the average annual bonus?

Anything close to the nationwide average of 8% or above might be considered a good bonus percentage. If 8% isn't possible, employers could go down to around 5% for it to still be seen as worthwhile. Around 20% of an annual salary is usually considered generous but this could still depend on the industry.

What's a 4% pay raise?

A salary increase of 4% refers to a 4 percent increase in your current salary. To calculate this, multiply your current salary by 0.04 (4 percent expressed as a decimal). Add this amount to your original salary to get your new salary with a 4 percent raise.

What is classed as rich in the UK?

A £213,000 annual income is deemed enough to be wealthy

When asked what you need to be considered wealthy, participants in the HSBC report suggested an average annual income of £213,000 was the threshold in the UK – more than six times the national average salary.

What is middle class income?

Median income, 2023: $140,219. Lower bounds on middle class income, 2023: $93,470. Upper bounds on middle class income, 2023: $280,438. Median income, 2022: $132,380. Lower bounds on middle class income, 2022: $88,245.

What is the average salary in the UK for a 30 year old?

18 to 21-year-olds – £441 per week (£22,932 per annum) 22 to 29-year-olds – £583 per week (£30,316 per annum) 30 to 39-year-olds – £722 per week (£37,544 per annum) 40 to 49-year-olds – £770 per week (£40,040 per annum)