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What is a poor salary UK?

Low pay is defined as the value that is two-thirds of median hourly earnings and high pay is defined as the value that is 1.5 times median hourly earnings. For example, median hourly earnings for all employees in 2022 are £14.77, therefore low-pay employees are anyone earning below two-thirds of £14.77, which is £9.85.

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3. Low- and high-paid employee jobs

The Annual Survey for Hours and Earnings (ASHE) is based on employer responses for a 1% sample of employee jobs, using HM Revenue and Customs Pay As You Earn (PAYE) records to identify individuals’ current employer. Throughout this bulletin, the terms “jobs” and “employees” are used interchangeably. Over the coronavirus pandemic period, earnings estimates were affected by changes in composition of the workforce and the impact of the Coronavirus Job Retention Scheme (furlough) making interpretation difficult; also data collection disruption and lower response rates mean that, for 2020 and 2021, data were subject to more uncertainty and should be treated with caution; we would encourage users to focus on long-term trends rather than year-on-year changes. Figure 1: The proportion of low-paid employee jobs for hourly pay and gross weekly pay fell to record lows of 10.5% and 24.5% respectively in 2022 Proportion of high- and low-paid employee jobs for hourly pay and gross weekly pay, whole economy, UK, 1997 to 2022 Source: Office for National Statistics – Annual Survey of Hours and Earnings (ASHE) Notes: Estimates for 2022 data are provisional. Employees are on adult rates, pay is unaffected by absence unless furloughed. Full-time is defined as employees working more than 30 paid hours per week (or 25 or more for the teaching professions). Low pay is defined as the value that is two-thirds of median hourly earnings and high pay is defined as the value that is 1.5 times median hourly earnings. Download this chart Figure 1: The proportion of low-paid employee jobs for hourly pay and gross weekly pay fell to record lows of 10.5% and 24.5% respectively in 2022 Image .csv .xls In 2022, 10.5% of all employee jobs were low paid (were paid less than two-thirds of median hourly pay), when considered in terms of hourly earnings. This was the lowest proportion of low-paid employee jobs by hourly pay since the data series began in 1997, which coincides with recent increases in the National Minimum Wage (NMW) and National Living Wage (NLW) rates. This also coincides with the additional increase in the NMW for those aged 23 and 24 years, who joined those aged 25 years and over in receiving the NLW in 2021. When considered in terms of weekly pay, the proportion of low-paid jobs has fallen slowly in recent years and in 2022 decreased to 24.5%, the lowest on record. High-paid employee jobs (those earning more than 1.5 times the median) for hourly and weekly pay have decreased by 0.7 and 0.9 percentage points respectively since 2021, averaging approximately just under a quarter of all employee jobs across both the hourly and weekly pay series. Our definitions of low and high pay are based on those used by the Organisation for Economic Co-operation and Development (OECD) in which low pay is defined as below two-thirds of median hourly earnings and high pay is defined as more than 1.5 times median hourly earnings. See Glossary for details. In 2022, low pay is defined as those earning below £9.85 per hour and high pay is defined as those earning more than £22.16.

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