UK industry salary and benefit trends for 2025
Drawing from analysis of 17.4 million job ads across 23 industries, Totaljobs' latest research reveals the pivotal salary and benefit trends shaping recruitment in 2025. Download our comprehensive UK Salary Trends Report for essential insights into crafting competitive remuneration packages to support talent attraction and retention.
Key takeaways
- The advertised median salary grew by 2.4% in 2024, compared to 3.4% in the year prior.
- Salary satisfaction decreased to 63% in 2024 from 66% in 2023.
- On average, in 2025 workers expect a pay rise of 4.5%.
- 72% of workers say salary is the most important factor when choosing a job.
- 66% of workers are willing to skip a pay rise to receive their most desired benefits, which include flexible working hours and enhanced sick pay.
- Saving for retirement (32%) is the top financial goal for workers over the next 10 years, followed by ensuring a comfortable standard of living and covering day-to-day living expenses comfortably (both 22%).
Explore these trends further in the full report
Market update: Softening conditions with low churn
In 2024, the UK labour market showed signs of cooling amid economic challenges. Vacancies have declined to 831,000 and unemployment has risen slightly to 4.3%. While this has eased competition for talent, the evolving dynamics of inflation, pay, and worker retention continue to shape the employment landscape.
Inflation rose by 2.3% over the past year, increasing pressure on workers and employers alike. However, real wages have seen modest growth, providing some support for household consumption and the wider economy. This has been especially pronounced in industries with historically lower pay due to the rise in the National Living Wage. While this adjustment has benefitted workers, it has also contributed to higher tax obligations per employee.
Salary growth has stagnated in sectors like Technology due to normalised demand, while industries like Legal and Engineering continue to offer competitive pay to attract skilled professionals. Conversely, sectors with growth potential like Hospitality, Travel, and Administration face slower recovery as employers adapt to evolving economic conditions.
The current labour market presents opportunities for employers to focus on retention. With low worker churn, many employers are investing in career progression and learning, training, and skills development to address shortages internally, helping build resilience in the face of hiring challenges.
Below, we take a deep dive into UK salary and employee benefit trends in 2024 with a look at the strategies your organisation can implement to ensure your compensation strategy remains competitive in 2025.
The U.K. labour market is back in balance; following the two years of overheating throughout 2021 and 2022. Vacancies continue to decline, and employment growth is sluggish. Worker turnover is currently low and there are concerns that the policies introduced in the Autumn Budget will weigh on the hiring lookout. On the bright side, real wages of workers are growing at a healthy rate, supporting household consumption and the economy.
Julius ProbstLabour Economist
Salary trends across 2024
The full findings of our research include industry-specific insights and closer examination of UK-wide salary trends. At the top level, we found that advertised salaries grew by 2.4% from 2023 to 2024, reflecting a steadying labour market as wage growth slows compared to previous years.
London remains the city offering the highest salaries, followed by Birmingham and Manchester. Notably, Bristol has risen above Belfast and Leeds into fourth place, solidifying its reputation as an emerging hub for talent. Furthermore, worker mobility continues to shape opportunities. 21% of workers are open to relocating within the UK, while 23% would consider a move within Europe for better opportunities.
| Cities with the highest pay | 2024 median salary |
|---|---|
| London | £40,511 |
| Birmingham | £37,079 |
| Manchester | £36,689 |
| Bristol | £36,623 |
| Edinburgh | £35,956 |
Our analysis reveals significant salary growth in Customer Service, Retail, and Healthcare, driven by factors such as the National Living Wage increase to £11.44 an hour and industrial action by healthcare professionals. While these changes have benefited workers, higher tax burdens for employers may have tempered hiring in some sectors.
Conversely, despite remaining among the highest paying industries in 2024, Banking and Finance experienced declines in advertised salaries, reflecting a recalibration in some previously high-growth sectors.
Construction still stands out as a unique case, being the only non-office-based sector among the highest-paying industries. Labour shortages and the demand for qualified professionals have continued to drive salaries up. Despite facing challenges such as reduced output and higher operating costs, Construction remains a resilient and growing industry where the need for skilled workers shows no sign of abating.
Salary satisfaction
Salary satisfaction declined slightly in 2024, with 63% of workers happy with their current pay compared to 66% in 2023 and 68% in 2022. This steady decline reflects the growing financial pressures employees are feeling, with as many as 1 in 5 candidates living pay check to pay check amid the rising cost of living, and 3 in 5 worried about their financial situation.
For jobseekers, salary remains the top priority during their search for a new role, with 72% identifying it as the most important factor and 74% avoiding applying for roles without salary range information. This financial strain has prompted many workers to actively seek higher-paying opportunities, with 39% saying they will look for a new role in the next year in search of a higher salary.
Unsurprisingly, pay satisfaction is high in sectors with the highest salaries, such as Technology (77%) and Banking and Finance (72%). This reflects the specialised skills and expertise required in these fields aligning with the compensation employees receive for the work they do.
However, sectors like Customer Service and Healthcare, despite achieving some of the highest salary growth rates in 2024 (14.8% and 14.5%, respectively), rank among the least satisfied. This highlights a perception among workers in these fields that pay still lags behind their contributions and the demands of their roles.
Looking ahead, workers’ financial goals underscore a focus on long-term stability. Over the next decade, saving for retirement plans (32%) is the top financial priority, followed by maintaining a comfortable standard of living and covering day-to-day expenses (both at 22%). These aspirations illustrate the importance of aligning salary not only with market benchmarks but also with employees’ evolving financial concerns.
The UK gender pay gap in 2024
The UK gender pay gap continues to show gradual improvement but remains a persistent issue. Among full-time employees, the gender pay gap for hourly earnings fell to 7.0% in April 2024, down from 7.5% the previous year. This means that for every £1 earned by a man, a woman earns 93p.
When including both full-time and part-time workers, the gap stands at 13.1%, improving from 14.2% in 2023. The wider gap reflects the prevalence of women in part-time roles, which typically offer lower hourly pay compared to full-time positions.
Age also plays a significant role in pay disparity. Over the age of 40, the gender pay gap among full-time employees increases sharply, highlighting challenges in career progression and pay equity for women as they advance in their careers.
Certain industries remain notably behind in achieving pay equality. Fields such as Construction, Skilled Trades, Engineering, Manufacturing, and Healthcare have some way to go to close the gap, as women in these sectors continue to face systemic barriers to equal pay and advancement opportunities.
Benefit trends across 2024
Employers are continuing to adapt their benefits to attract and retain talent, with many looking to meet changing worker priorities and expectations. For example, our research shows that free parking and life insurance are among the advertised benefits currently on the rise.
However, a clear disconnect remains between what workers want and the incentives employers are currently offering. For instance, while flexible working hours are prioritised by 41% of candidates, just 13% of job ads offer this benefit. Notably, 66% of workers would even forgo a pay rise to secure flexible working arrangements.
The most attractive benefits
When it comes to candidate preferences, flexibility, financial security, and work-life balance lead the way. We found that after flexible working hours, the most sought-after benefits are sick pay above statutory requirements (26%) and pension contributions (25%).
Looking at the most frequently advertised benefits, our research shows that pension contributions (34%) and career progression opportunities (16%) come out on top. Despite these offerings, there is room for improvement, particularly in bridging the gap between desired benefits like flexible hours and actual employer offerings.
Benefits satisfaction
Benefit satisfaction among workers has seen an encouraging improvement in 2024. 76% of workers report being satisfied with the benefits plan their employers offer, up from 72% in 2023 but still slightly below the 78% observable in 2022.
This increase suggests employers are responding to worker demands, particularly around financial security and professional development. To maintain this positive trajectory, employers will need to evaluate their benefit strategies carefully and focus on aligning their offerings with UK salary trends and the evolving needs of the workforce.
Tips for employers
To remain competitive in 2025 and beyond, employers need to work to address key workforce priorities around salary expectations and flexible working options.
Below are actionable steps you can take to stay competitive in your efforts to attract and retain top talent.
- Benchmark salaries: With 72% of workers citing salary as the most important factor when choosing a job, offering competitive pay is non-negotiable. In a market where 53% of employers are struggling to meet salary expectations, benchmarking against industry standards is crucial. On average, workers expect a 4.5% pay rise in 2025, so working to stay up to date with salary trends can help retain talent and avoid losing candidates to competitors. Read more on how to benchmark salaries effectively.
- Consider pay rises to retain talent: Retaining top talent requires regular, fair pay reviews. Negotiating salaries and offering rises aligned with inflation and market demands can help counter job-hopping, especially with around 1 in 3 workers planning to look for a new role in 2025. Failing to meet salary expectations could result in talent joining competitors offering even modest pay increases. Learn how to conduct effective salary reviews.
- Review and improve employee benefits: Candidates prioritise flexible hours, sick pay, and pension contributions, yet these are often under-advertised, with flexible working appearing in just 12.5% of job ads despite being the most desired benefit of workers. Employers can also address growing wellbeing concerns with offerings like health insurance and mental health support, especially important given the 41% rise in sick days over the past three years. Discover how to create a comprehensive benefits package.
- Offer flexible working: Flexible working remains a top priority, with 53% of employers struggling to meet candidate expectations in this area. This is a major opportunity for businesses to stand out, as 66% of workers would trade a pay rise for flexible hours. Promoting hybrid working, remote options, and flexible schedules can attract talent, especially as these preferences dominate candidate priorities. Find out more about implementing remote, hybrid, and flexible working.
- Evaluate your culture and EVP: Company culture and an engaging Employer Value Proposition (EVP) are increasingly important for candidates. While salary and benefits are primary drivers, non-monetary incentives like work-life balance, job security, and positive work environments strongly influence job decisions. Working with employer branding experts, Universum, we can help you identify where your brand sits in the global market, what your audience is looking for, and how to craft a compelling brand proposition to speak to these varied needs. Learn more about Universum.
Check out our latest Salary Trends Report to make sure your compensation hits the mark
About our research
Data for our salary and benefit report comes from OTT; an inhouse tool built by The Stepstone Group to look at job postings and all peripheral information (like salaries, region, skills etc). We analysed 17.4 million job ads across the UK to pull salary and benefits data from Q3 of 2019, 2020, 2021, 2022, 2023, 2024 in November 2024 to provide an overview of how salaries changed in the past 5 years in the 23 industries analysed. By looking at all job postings, we calculated the advertised gross median salary per industry, the gross median salary advertised in the following 17 cities: Aberdeen, Belfast, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Newcastle, Nottingham, Oxford, Plymouth, Portsmouth and Sheffield.
Insights from a UK worker perspective come from a survey conducted between 18th of November and 2nd of December 2024, that went to a total of 3,000 UK workers. The survey was weighted to be representative of the UK workforce based on age, gender and region. This survey was then boosted to ensure at least 100 respondents for the 23 industries we analysed for an accurate representation of each industry.