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In this article, you’ll learn what your salary is worth. Accepting a job offer without knowing the value of your wage is dangerous. You may not make enough to make ends meet. Or, you may earn much less than you should.
Having lived in the UK for over ten years, I worked my way up the career ladder from the bottom. I know exactly what you get for various salary levels. With this article, you can make confident career decisions, too.
💡 What Is a High Slalary in the UK?
There is no clear-cut definition of what constitutes a high salary in the UK. You can consider yourself a high earner if you:
- Earn double the average salary (at least £60,000)
- Reach the high-income tax bracket (at least £50,270)
- 💡 What Is a High Slalary in the UK?
- What Is the Definition of a "High Salary"?
- What Is the Average Salary in the UK?
- What Are High Earners by Tax Definition?
- How Does Your Salary Compare to the Highest-paying Jobs in the UK?
- What Living Standard Can You Have With Your Salary?
- What Is a High Salary in the UK? Summary
What Is the Definition of a “High Salary”?
The term “high salary” can mean different things for different people. For someone earning nothing, £30,000 may be a high salary. However, nationwide, this is only an average amount. To quantify what “high” means, we can look at average salaries and UK tax brackets.
Ultimately, whether you want to say you earn a high salary depends on you.
What Is the Average Salary in the UK?
According to the Office for National Statistics, a full-time employee’s median weekly pay is £640 per week. This translates to an annual median salary of around £33,000.
Median means there is an equal amount of people earning below £33,000 and above £33,000. It is the most accurate way to present the average salary. Many people work in minimum-wage jobs, while only a few are on the opposite end.
The mean salary in the UK is £38,000 for a full-time employee. A “mean” is the sum of all salaries divided by the number of people working.
If you earn over £33,000, you can call your salary “above average”. You can call your salary “high” if you make double the average.
Average Salary by Region
The median and mean values stated above don’t consider regional variation. In the UK, the average salary varies sharply by location:
- London: £42,000
- South East: £34,000
- Scotland: £33,000
- East: £33,000
- West Midlands: £32,000
- South West: £31,000
- North West: £31,000
- Wales: £31,000
- East Midlands: £30,000
- Yorkshire: £30,000
- Northern Ireland: £30,000
- North East: £30,000
As you can see, a good salary in London would need to be higher than elsewhere in the country.
Average Salary by Age
The average salary also varies by age. You might not be earning a high salary compared to averages. However, your salary can still be high for your age group.
Younger people are typically less experienced and earn less than older people. According to Statista, salaries increase with age until shortly before retirement age.
What Are High Earners by Tax Definition?
In the UK, people pay taxes differently depending on their earnings. HMRC automatically allocates you to an income tax bracket and taxes you accordingly.
Everyone gets a personal allowance; above this, the UK has a tiered tax system. For example, if someone earns £60,000 per year, they pay:
- No tax on the first £12,570
- 20% on the remaining amount up to £50,270
- 40% on the rest of the salary
HMRC taxes income between £50,270 and £150,000 at a high-tax rate. This means that if your salary exceeds £50,270, it is “high”.
| Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | Up to £50,270 | 20% |
| High rate | Up to £150,000 | 40% |
| Additional rate | Over £150,000 | 45% |
How Does Your Salary Compare to the Highest-paying Jobs in the UK?
If you want to earn a high salary, looking at the jobs that pay the most makes sense. According to Indeed, the highest-paying jobs in the UK are:
- Lawyer
- Chief executive officer
- Actuary
- Marketing director
- Managing director
- IT director
- Director of engineering
- Tax director
What Living Standard Can You Have With Your Salary?
Knowing whether your salary is high or low is a good indicator of what kind of life you can afford. However, there are still several variables that influence your living standard.
Earning £20k per Year
A salary of £20k means you earn £1700 per month. After taxes, you get around £17,000 per year or £1500 per month. Your salary may vary if you have any extra allowance or deduction.
On a salary of £20k, you can survive and fulfil your basic needs. You will not have much spending money and struggle in London. If you cannot increase your salary, picking up a side hustle may be a good idea.
Read more: Is £20k a good salary? and Is £25k a good salary?
Earning £30k per Year
A salary of £30k means you earn £2500 per month. After taxes, you get £24,000 per year or £2000 per month. Your salary may vary if you have any extra allowance or deduction.
If you earn £30k per year, you have an average salary in the UK. You can have a decent standard of life with some occasional splurging. However, you cannot afford a house in most areas of the UK.
Read more: Is £30k a good salary? and Is £35k a good salary?
Earning £40k per Year
A salary of £40k means you earn £3300 per month. After taxes, you get £31,000 per year or £2600 per month. Your salary may vary if you have any extra allowance or deduction.
Earning £40k per year means you are making an average salary for London and are slightly above average for the rest of the country. In the cheaper areas of the UK, you can afford to buy property.
Read more: Is £40k a good salary? and Is £45k a good salary?
Earning £50k per Year
A salary of £50k means you earn £4200 per month. After taxes, you get £38,000 per year or £3100 per month. Your salary may vary if you have any extra allowance or deduction. A salary of £50k is higher than average in all areas of the UK. You are still a basic-rate taxpayer but are scratching the upper limit.
On £50k, you can afford a good standard of life outside of London. In London, you probably can’t buy property, but you can live relatively well.
Read more: Is £50k a good salary? and Is £55k a good salary?
Earning £60k per Year
A salary of £60k means you earn £5000 per month. After taxes, you get £43,000 per year or £3600 per month. Your salary may vary if you have any extra allowance or deduction.
With a salary of £60k, you earn double the UK’s average and are a high-rate taxpayer. Thus, you can claim that you have a high salary. You can live comfortably and afford some luxury, especially outside of London.
Read more: Is £60k a good salary? and Is £65k a good salary?
Earning £70k per Year
A salary of £70k means you earn £5800 per month. After taxes, you get £49,000 per year or £4000 per month. Your salary may vary if you have any extra allowance or deduction.
If you earn £70k, you are a high-rate taxpayer and make more than double the country’s average. You are a high earner and can live well, even in more expensive areas.
Read more: Is £70k a good salary? and Is £75k a good salary?
Earning £80k per Year
With a salary of £80k, you earn £6670 per month. After taxes, this equates to £55,500 per year or £4600 per month. Usually, employees see slightly less of their pay due to pension contributions.
With £80k, you are a high-rate taxpayer. Your salary is almost double the average in London, the UK’s most expensive area. You can have a good quality of life and save and invest money.
Read more: Is £80k a good salary? and Is £85k a good salary?
Earning £90k per Year
On a salary of £90k, you receive £7500 per month. After taxes, your salary is £61,000 per year or £5100 per month. Depending on your circumstances, you may see slightly less or more of your salary.
People earning £90k are high-rate taxpayers. They make three times the national average salary. Even in London, people on this salary can live well.
Read more: Is £90k a good salary?
Earning £100k per Year
On a salary of £100k, you receive £8333 per month. After taxes, this is £67,000 per year or £5580 per month. Your salary will vary depending on deductions, such as pension contributions and extra allowances.
With £100,000, you are a high-rate taxpayer. A salary of £100k is three times the national average salary. It is also more than double the average salary in London.
Read more: Is £100k a good salary?
Earning £200k per Year
On a salary of £200k, you receive £16,667 per month. This is £116,000 per year and £10,000 per month post-tax. Your actual amount will likely be lower due to pension contributions and other deductions.
Read more: Is £200k a good salary?
What Is a High Salary in the UK? Summary
There is no set-in-stone definition of what a high salary is. However, your salary is high if you earn double the UK’s average salary and are a high-rate taxpayer.
This would set the minimum threshold for a high salary at around £51,000 to £60,000. Whether a salary is high also depends on the region.
Overall, you can have a good quality of life with an average salary (around £30,000). You may want to start a side hustle if you earn less.
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