Sunday, October 26, 2025

What Salary & Compensation Trends in 2025 UK

 


Money isn’t everything, but it matters — both for your decision-making and negotiation.

Pay growth & real wage change

  • Regular pay excluding bonuses rose ~ 5.2% year-on-year in Feb-Apr 2025. ONS Backup

  • Real wage growth (i.e., after inflation) is modest – meaning cost of living remains a pressure. Abruv

  • In terms of advertised salaries: in early 2025, the average advertised salary hit about £40,846 in January. The Times

Implications for you

  • If you’re negotiating or relocating, don’t just look at the nominal salary — consider cost of living (London vs regional UK), tax, accommodation, travel.

  • Tailor your expectations by role, sector and location. Some high-skills roles command much higher than average; some entry-roles less.

  • Benefits matter: flexibility, hybrid work, upskilling, bonus structures, pension contributions all add value.

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