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The Office for National Statistics says average annual pre-tax earnings for full-time employees reached £40,911 in the year to April 2026, passing £40,000 for the first time. Pay growth has also increased the share of earnings exposed to income tax because thresholds remain frozen, while inflation-adjusted full-time pay rose 2.7%, according to AJ Bell’s Sarah Coles.
Average annual pre-tax earnings for full-time employees in Britain reached £40,911 in the year to April 2026, passing £40,000 for the first time, according to figures from the Office for National Statistics (ONS). The milestone comes as income tax thresholds remain frozen, meaning rising nominal pay can leave more earnings subject to tax even when the increase in purchasing power is smaller.
Average full-time weekly earnings stood at £811.20 by April 2026, up 5.8% over the year, the ONS figures show. Average part-time weekly earnings rose more slowly, increasing 2.9% to £288.10. These are pre-tax pay figures and do not show how much workers take home after tax, National Insurance or other deductions.
The ONS reported that the median annual pre-tax salary for full-time workers increased by 4.5%, down slightly from 4.6% in the previous period and the slowest rate since 2021. The median is the midpoint: half of workers earn more and half earn less. Separately, Sarah Coles of AJ Bell said full-time pay rose by 2.7% after inflation, a measure that accounts for changes in prices. The two figures describe different aspects of pay growth and should not be treated as interchangeable.
Pay growth varied across jobs and groups. Full-time weekly earnings rose fastest for managers, at 6.7%, and slowest for factory workers, at 4.1%. Average full-time pre-tax earnings were £43,934 for men and £37,471 for women. The ONS said the full-time gender pay gap narrowed to 6.8% from 7.2%; the measure does not adjust for differences in occupation, experience or qualifications.
Frozen Thresholds Can Raise Tax Bills
The £40,000 figure is an average before tax, not a guaranteed salary or a measure of what a typical worker takes home. Its significance for household budgets depends on prices, deductions and individual circumstances. Coles said the inflation-adjusted rise in full-time pay was 2.7%, meaning much of the increase in nominal wages was offset by price rises.
At the same time, the personal allowance remains £12,570 for most people, while the higher-rate threshold is £50,270. When earnings rise but tax thresholds do not, a greater portion of income can become taxable or fall into a higher tax band. This effect is commonly called fiscal drag; it does not mean every worker receives a pay rise large enough to move into a higher rate.
Coles said the number of people paying income tax rose from 33 million in 2021/22 to an estimated 39.8 million in 2025/26. Those figures are her account of the trend, rather than a count supplied in the ONS earnings figures described here. The salary milestone therefore sits alongside a broader tax issue: headline pay growth does not by itself show how much workers retain or how far their living standards have changed.
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Pay Growth and Tax Thresholds
The ONS figures cover earnings in the year to April 2026. They report annual pay and weekly earnings, while a separate early estimate from the ONS put median monthly pay at £2,660 in September 2026, up 4.4% from a year earlier. The ONS said weaker median pay growth figures in late 2025 were likely influenced by public-sector pay settlements taking place at a different time than in the previous year.
Income tax thresholds have been frozen at their current levels since 2021, according to the source report. Standard Life estimated that, if the personal allowance had risen with inflation, it would have been £16,072 in 2026/27, rather than £12,570; it also estimated the higher-rate threshold would have been £64,274 rather than £50,270. These are estimates based on an inflation comparison, not current tax rules.
The legal minimum wage also increased in April 2026. The source report says the rate for workers aged 21 and over rose by 50p to £12.71 an hour, while the rate for those aged 18 to 20 rose by 85p to £10.85. The ONS found the highest proportion of low-paid employees in hospitality and among workers aged 16 to 21.
“The average full-time wage has broken through £40,000 for the first time, after weekly pay rose 5.8 per cent in a year.”
— Sarah Coles, AJ Bell
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What the Salary Average Leaves Out
The headline average does not reveal the distribution of pay: some full-time workers earn substantially more and others less than £40,911. The supplied figures do not give a full breakdown of take-home pay by household, region or individual tax circumstances. Nor does an average alone establish whether a particular worker’s income has kept pace with their own costs.
The ONS’s September 2026 monthly pay figure is described as an early estimate, rather than a final annual measure. The material also does not establish how future pay growth, inflation or any later policy changes will affect workers’ earnings and tax bills. Standard Life’s inflation-adjusted threshold comparisons and tax-bill estimates are attributed to that organisation and depend on the assumptions used.
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Budget and Future Wage Decisions
The next policy date identified in the source report is the October 28 Budget, when Chancellor John Healey is expected to announce the next minimum-wage increase. The report says the chancellor is also under pressure over frozen income tax thresholds, but it does not confirm that any threshold changes will be announced. Until policy is set out, the current thresholds remain the relevant figures for understanding how earnings are taxed.
Further ONS pay releases will show whether the April annual figures and September monthly estimate are followed by continued growth, a slowdown or revisions. Workers comparing a pay offer with its likely value should distinguish the gross increase from inflation and deductions; the reported national averages cannot predict an individual’s net pay.
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Key Questions
What does the £40,911 figure measure?
It is the average annual pre-tax earnings for full-time employees in the year to April 2026, according to the ONS. It is not a take-home pay figure or the salary earned by every full-time worker.
How quickly did full-time pay increase?
Average full-time weekly earnings rose 5.8% over the year to £811.20 by April 2026. The ONS reported a 4.5% rise in median annual pre-tax salary, while AJ Bell’s Sarah Coles said full-time pay was up 2.7% after inflation.
Why can a pay rise lead to a higher tax bill?
When income tax thresholds stay fixed while pay increases, more of a person’s income may be taxed or may enter a higher band. The effect, known as fiscal drag, depends on an individual’s earnings and tax circumstances; a higher gross salary does not automatically mean a worker moves into a higher tax rate.
Did the gender pay gap change?
The ONS said the gender pay gap for full-time workers narrowed to 6.8% from 7.2%. The measure does not account for differences in occupation, experience or qualifications, and average full-time pre-tax earnings were £37,471 for women and £43,934 for men.
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