UK salaries for Indians in 2023-24

The UK has been the go-to destination in Europe for Indians for decades, and now, the Indian community is the largest ethnic group there. And what a thriving community it is! Not only is the current Prime Minister of Indian origin, but economically, Indians are doing better than many others: most are employed and well-paid. So, if you are an Indian interested in employment opportunities in the UK, this article is for you. What is the minimum wage in the UK? Is a salary after tax in the UK enough to make ends meet? Where are wages the highest? Read on to find answers to these and other questions and secure a well-paying job.

Indian professionals in the UK: some stats

Indian professionals are in high demand, and many earn much more than the average salary in the UK. In 2024, the most promising industries for Indian candidates are STEM, medicine, and healthcare. Here are some interesting facts about Indians working in the UK:

• 31% of Indians are employed in professional occupations, such as teachers or engineers; 26% in healthcare, education, or public administration; 21% in banking, finance, and insurance
• More than 50% of all employment-related UK visas are granted to Indian professionals
• Over 40% of post-study work visas go to Indian students. In 2017, 86.3% of Indian graduates were employed or continued education five years after graduating, earning £28,500 on average
• Most of the newly recruited foreign doctors (20%) and nurses (46%) in the UK come from India
• The rate of employment is 80% among Indian men in the UK and 60% among Indian women; both numbers are higher than for any other UK ethnic community
• Indians have been earning more than the UK average salary per month. For example, in 2018, white British were paid an average hourly rate of £12.03, while for Indians it was £13.47, second only to Chinese (£15.75)
• 36.3% of Indians working in the UK are in the fourth quartile, earning more than 75% of employees, which allows them to lead a decent lifestyle and support their loved ones in India.

What is the minimum wage in the UK?

Since 1998, the UK has been one of the countries where the minimum wage is regulated by law. Known as the National Living Wage (NLW), it depends on the employee's age and is revised every April. Currently, a person must be over 23 to be eligible for the NLW, but as of April, the age limit will be lowered to 21 for the first time. There are separate categories of minimum wages for the UK's younger workforce, as shown in the table below:

Minimum wage in the UK by age

There is also an initiative called 'Real Living Wage' (RWL) overseen by the Living Wage Foundation (LWF). The companies participating in it, including Google, Ikea, and Burberry, voluntarily commit to pay their workers what the LWF calculates to be a 'real' minimum wage in the UK based on living costs. Currently, it is £12 for the UK and £13.15 for London. For Indian expats, those numbers might be higher because many need to support their families financially back home.

What is the average salary in the UK?

In 2023, the gross median earnings in the UK stood at £682 per week, which translates into an annual £35,464. Thus, the UK average salary per month last year was £2,955.

The number varies depending on the region, with an average salary in London being higher than elsewhere in the UK. It also changes with age: Young people are paid the lowest wages, while those in their 40s are in the highest-earning category.

Average UK salary by age

Furthermore, the average salary in the UK differs between occupations. In 2023, the following were the top 5 professions with the highest average pay per year:

• Chief executives: £84,131
• Marketing, sales, and advertising executives: £83,015
• IT directors: £80,000
• Public relations and communications directors: £79,886
• Logistics, warehousing, and transport directors: £72,177

Wage changes in 2024

It is not only the minimum wage in the UK that is set to get higher this year. According to the latest government statistics published in January 2024, the average gross monthly salary has increased by 6.2% year-on-year. However, in 2024 it is predicted to slow down to about 5%. Last year, the highest pay increases were observed in sectors such as sustainability, accountancy, and finance, and in professions including energy managers, machine learning specialists, supply chain managers, and others.

Things look less bright for an average salary in the UK in 2024 if adjusted for inflation. The Annual Survey of Hours and Earnings shows that between 2008 and 2023, real median earnings decreased by 8%. Northern Ireland was the only region with wages growing by 1%. The rest of the UK saw earnings being either lower than or around the same as in 2008. Even average salaries in London in 2023 were 12% lower in real terms than 15 years ago.

Size of salary: defining factors

“What is the average salary in the UK?” is essentially a statistical question. In reality, even similar jobs can be remunerated differently. So, what factors affect the size of salary after tax in the UK?

1. General situation on the market. If the economy flourishes, the salaries grow; during a recession, the profits and the demand for the workforce decrease, and so do wages. Market trends also turn the spotlight on specific industries, such as AI, which is now bringing in investment and resulting in earnings higher than average salaries in the UK.

2. Industry. Specific industries traditionally pay more to their employees. For example, those working in finance and investment can make a fortune within a month, while most jobs in the service industry would provide middle-class income in the UK at best.

3. Company size. Roughly speaking, larger companies tend to pay above-average salaries in the UK. They also often need professionals with specific skill sets and are ready to generously remunerate those possessing the necessary skills. This is especially true for the IT industry, where a shortage of experts in many pioneering technologies in the UK pushes the average salary per month. Many Indian experts have taken advantage of this situation by securing employment with multinationals in the UK from India.

4. Qualifications/degrees. This is a crucial factor for entry-level jobs and for recent graduates who usually lack experience. Of course, a degree does not automatically land its holder a job with even a middle-class income in the UK, but it substantially increases chances for employment. Professional qualifications also play a significant role at a higher management level, where technical experts might lack general managerial skills after a promotion (hence the popularity of MBA degrees among working professionals).

5. Experience. This is the first thing most employers look for in a CV. The greater your experience is, the more you (supposedly) know about your job. Moreover, experience usually means a wider network of industry contacts, which is just as valuable. No wonder that, up to a certain point, there is a straightforward correlation between an average UK salary and age because, in most cases, experience directly depends on age.

1. Location. The region of employment affects the size of an average salary in the UK. Jobs in cities usually mean wages higher than in rural areas. However, urban life is also more expensive, so a salary after tax in a UK city might not be enough to cover everyday expenses. Naturally, the highest average salary is in London: in 2023, median weekly pay in the capital was £796 compared to the lowest of £614 in the North East. Essentially, the average UK salary by age was the highest in London for all age groups over 22. In two more regions, South East England and Scotland, workers earn more than the UK average. For young people aged 18-21, the wages were the highest in the West Midlands – an excellent thing to know if you are an Indian student in the UK.

If you keep in mind all this information when looking for a job in the UK, from India or as an Indian student there, there is a high chance you end up with a generous employment contract, well above an average salary in the UK. Not only might this be your ticket to a better life in Europe if you decide to relocate permanently, but also an opportunity to finally provide your Indian family with the life they deserve. Thanks to modern online money transfer services such as Profee, it is super easy, fast, and cheap. Try the app or go to the converter page to see for yourself – and then invite your friends through the referral programme because Profee is a service worth recommending!