The average salary of full time employees in the UK is £39,966 and every year companies in many sectors increase the annual salary of their working employees. Last year also the UK salary increase rate was around 5-6% and working employees are expecting a good pay rise this year. Today in this article we will look at UK Salary Increase 2024 and know how much salary hike UK Employees are going to get in 2024.
UK Salary Increase 2024
An Employee is rewarded annual increment on the basis of their good conduct during one year of service. As everyone knows that the new year 2024 is here and now the time of appraisal of working employees is nearing in which UK Employees are expecting increase in their salary and promotions. Last year 2023, the pay rise of employees was around 5-6%. And this time also employees of all sectors are expecting a good salary increment by 2024.
According to current estimates, UK employees can now expect an average increase of 4.4% in their salary. However, this increase percentage is less than last year. The reason for the decrease in the salary budget is reflecting the economic landscape which depends on the job market and overall economic conditions.
Highlights of UK Salary Increase 2024
| Article Title | UK Salary Increase 2024 |
| Year | 2024 |
| Category | Finance |
| Last year’s Salary Increase Rate (2023) | 5.1% |
| Current year’s Estimated Salary Increase | 4.4% |
Average Salary in United Kingdom
The basic annual income of any employee in the United Kingdom is approximately £33,402 which will increase to approximately £31,447 in 2021. The salary of full-time workers in the UK is around £33000 whereas in 2021 it was £31285. A person’s income is based on many factors which influence a person’s income like in which sector the person is working, on which designation the person is working etc. Any person’s income is determined on the basis of their work profile and person’s skills and knowledge.
Expected UK Salary Increase 2024
Every year the salary of employees working in different sectors is increased depending on their performance in the past year. This provides encouragement to employees to increase their workforce and contribute more to the working sectors.
As now the new year 2024 has started, employees are excited about the upcoming UK Employee Salary Increase 2024. In 2024, UK employees can expect a near increment of around 4-5% in their salary. However, as per the speculations the salary hike is slightly less than last year. Last year the average pay increase was around 5.1%.
UK Salary Increase Calculator
If you are also a UK Employee and are curious about your upcoming UK Salary Increase 2024 and want to calculate an estimated salary hike, then you can also use the UK Salary Increase Calculator. To calculate the increment percentage, you have to divide the expected salary increase by the original salary and then multiply it by 100. For example, if your salary has increased from £50000 to £54230, that is £4230/£54230*100=7.8%.
UK Pay Increase Forecast 2024
UK Median gross annual salary was for full-time work employee was £34,963 in April 2023 and in 2022 it was around £33,061 which was a salary increase about 5.8%. UK Pay Increase Forecast for 2024 has been done by many financial institutions and it is believed that this year an annual salary hike of about 4.4% has been estimated. However, it is difficult to confirm anything, and the percentage of salary hike is based on rough calculations.
Factors that influencing Yearly Salary Budget
Every year a salary budget is prepared in which the organization keeps a total amount for salary increment in which they have to increase the salary of all eligible workers. But there are some factors which influence the salary budget also. For this, a survey was conducted in approximately 3142 UK organizations.
- Inflationary Pressure: About 71% of United Kingdom’s employers agreed that inflationary pressure affects significant impact on salary budget.
- Tighter Labor Market: About 54% of employers in UK says the salary budget is also being impacted due to the tight labor market.
- Employee Expectations: About 27% of employers agreed that expectations of the workforce also influence salary increases.
- Recession Forecast and Weaker Financial Results: 23% of UK Employees believe that Recession forecast, and weaker financial results also impact the salary budget.
- Cost Management Concerns: 20% of employers in the UK believe that cost management concerns also affect the salary budget.
UK Service Sectors
There are many types of working sectors due to which money flow is created in the country and country grows financially. In these sectors, the citizens of the country work on the basis of their skills and knowledge and contribute to the annual average salary. Some sectors have been mentioned below.
- Financial
- Public
- Retail
- Business Administration
Best Practices for Good Annual Pay Rise
Some such things are mentioned below, if they are taken care of then the annual income can be increased:-
- Employers should give their employees regular feedback on their performance so that they are aware of their progress and can also keep track of their pay rise.
- Some non-monetary recognition programs should also be run in the organization so that the employees can get encouragement like employee of the month award, flexible work arrangements etc. so that the employees can get job satisfaction.
- Transparent communication by the organization with its employees also encourages a good pay rise because it improves the trust of the employees in the organization.
- The organization should compare its salary structure with the salary structures of its competitors so that improvements can be made in the required areas.
- The organization should conduct surveys from time to time to get the feedback of the employees and some actions should also be taken.
- Pay increase should be linked to performance evaluation so that work quality also improves and there is visible contribution to the employee.
- Keep pay rise policies fair and transparent with employees.
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