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Insights into UK salaries

HR news has reported that salaries recorded an increase in December 2016, which is unusual considering December is normally classed as a quiet month for recruitment and pay rises.

But what do salaries across the UK look like overall? Who is earning the big bucks? DCS Multiserve, cleaning company, Newcastle, has compiled some insights into UK salaries, including:

  • The regions with the highest – and lowest – salaries
  • The job titles with the highest – and lowest – salaries
  • Industries, job roles and genders that pay below the National Minimum Wage

National Minimum Wage versus National Living Wage
What is the difference? The National Minimum Wage is the amount that an employee is entitled to be paid per hour that they work, whereas the National Living Wage is the amount an employee over 25 is entitled to be paid per hour. NLW was introduced by the government in April 2016.

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Current National Minimum Wage (NMW) per hour:

  • Apprentice: £3.40
  • Under 18s: £4
  • 18-20: £5.55
  • 21-24: £6.95

National (NLW) per hour:

  • 25 and over: £7.20

People with part-time jobs are more likely not to be paid the NMW or NLW
The Office for National Statistics revealed in October 2016 that 362,000 jobs were paying their employees, who are 16 or over, less than the NMW or NLW. That is 1.3% of the UK jobs, which is then further divided into 2.4% of part-time jobs and 0.9% of full-time jobs.

People aged 18-20 are most likely to be paid less than the NMW or NLW
Of those 362,000 jobs that pay less than the NMW or NLW:

  • 1% of jobs pay less to employees aged 18-20 years old
  • 4% of jobs for 21-24 year olds pay less
  • 3% of jobs for employees 25 and over pay less

Women are more likely to be paid less than the NMW or NLW

  • 7% of all jobs worked by women are paid less than the minimum wage by the employer. This is contrasted with just 1% of jobs worked by males. This equates to 230,000 jobs contrasted with 132,000.
  • 1% of full-time jobs worked by females are paid under the minimum wage, in comparison to just 0.7% of full-time jobs worked by males. This means that whilst 90,000 jobs worked by women are under paid, only 88,000 worked by men are under paid.
  • 4% of part-time jobs that are worked by women are underpaid, contrasted with 2.3% of part-time jobs worked by men.

Workers in the West Midlands and Yorkshire and Humber are most likely to be paid less than the NMW or NLW

  • 7% of jobs in the West Midlands and Yorkshire and Humber pay less than the minimum wage – equating to 40,000 and 38,000 jobs respectively.
  • London (0.9%) and Scotland (1%) top the least-likely regions to pay less than the minimum wage, equating to 35,000 and 25,000 jobs respectively.

Hairdressing and childcare are most likely to pay below NMW or NLW
In hairdressing, there are 7% of jobs that pay under the NMW, which equates to around 8,000 jobs that are underpaying. With regards to childcare jobs, 4% of employees are underpaid, which equates to 9,000 jobs that are paying below the NMW.

Salaries and job titles
In a recent article, the Independent revealed the highest paid jobs of 2016. So who are the highest earners?

The top five best paid jobs comprised of:

  1. Chief executives and senior officials swoop in at first place, earning £85.3K per year.
  2. Pilots and flight engineers are expected to take home around £85K per year.
  3. Earning £80K per year are air traffic controllers.
  4. In fourth position are Transport Associate professionals, who can earn £75.5K per year.
  5. Marketing and sales professionals can expect to take home £70K per year.

And on the other side of things – the top five worst paid jobs? Business Insider UK reported:

  1. In first place are waiting staff, who are likely to only earn £266.40 per week – £13,852.80 per year.
  2. Theme park attendants can expect to take home around £273.30 per week – £14,211.60 per year.
  3. Bar staff are likely to take home £274.00 per week (without tips) – £14,248 per year.
  4. Hairdressers and barbers earn around £274.10 per week – £14,253.20 per year.
  5. In fifth place are dry cleaners, who are paid about £275.40 per week – £14,320.80 per year.

Salaries and regions

The average salary of UK regions is detailed below, ordered from highest to lowest:*

Scotland

Weekly: £544.02

Annual: £28,289.30

Greater South East

Weekly: £531.89

Annual: £27,658.25

South West

Weekly: £500.38

Annual: £26,019.93

East Midlands

Weekly: £478.86

Annual: £24,900.72

West Midlands

Weekly: £474.125

Annual: £24,654.5

North East

Weekly: £461.90

Annual: £24,013.60

North West

Weekly: £458.18

Annual: £23,825.24

Wales

Weekly: £454.13

Annual: £23,614.93

Yorkshire

Weekly: £453.37

Annual: £23,575.07

Northern Ireland

Weekly: £448.10

Annual: £23,301.20

Insights

  • The region with the highest average salary in the UK is Scotland, with an average earning of £28,289.30 per annum.
  • The region with the lowest average salary in the UK is Northern Ireland, at £23,301.20.
  • There is a difference of £4,988.10 between the average salary of the highest paid region and the lowest paid.
  • Based on the above data, the average UK salary is £24,985.27 – the closest region to this is the East Midlands at an annual salary of £24,900.72.

Sources

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