Are UK Salaries Still Rising? Pay Growth in October 2026
Pay in the UK is still going up, and still a little faster than prices. But almost every measure shows the pace easing. Whether you are weighing up a job offer, preparing for a pay review or working out what to ask for, here is where wages stand now.
Last updated: 9 October 2026. Next update: 20 October 2026, when the ONS publishes new earnings figures.
Are UK wages still going up?
Yes, but more slowly. Regular pay, which excludes bonuses, grew 3.5% in the year to May to July 2026. Total pay, including bonuses, grew 3.9%, down from 4.2% in the previous three months (ONS).
| Measure | Latest figure | Source |
|---|---|---|
| Regular pay growth | 3.5% (May to July 2026) | ONS, 15 September 2026 |
| Total pay growth | 3.9% (May to July 2026) | ONS, 15 September 2026 |
| Median monthly pay | £2,657, up 3.5% on the year (August 2026, early estimate) | ONS, 15 September 2026 |
| CPI inflation | 3.1% (August 2026) | ONS, 16 September 2026 |
| Typical pay award | 3.0% (three months to August 2026) | Brightmine, 23 September 2026 |
| Advertised pay growth | 4.0% (year to August 2026) | Indeed Hiring Lab, 28 September 2026 |
| Expected pay growth, next 12 months | 3.4% | Bank of England, 2 October 2026 |
Are pay rises beating inflation?
Only just. CPI inflation was 3.1% in August 2026, up from 2.9% in July (ONS). After adjusting for inflation, regular pay grew 0.6% using CPIH, the ONS's preferred measure, or 0.8% using CPI (ONS).
That means most people's pay is still buying slightly more than a year ago, but the margin is thin. A pay rise below about 3% this year is likely to be a real-terms cut. The next inflation figures are due on 21 October.
What pay rise should you expect in 2026?
The typical pay award is 3%. Brightmine, which tracks pay settlements, found a median award of 3.0% in the three months to August 2026, with 3% the most common award, and it expects the median to stay at 3% over the coming year (Brightmine).
Employers expect pay growth to slow. Businesses in the Bank of England's Decision Maker Panel reported pay growth of 4.0% over the past year, but expect 3.4% over the next 12 months (Bank of England).
Are starting salaries still rising?
Yes, but the squeeze is starting to show. Recruitment agencies reported that starting salaries for permanent roles rose again in September, but growth slowed for the first time in four months and stayed below its long-run average. Pay for temporary workers rose at its slowest pace in four months (KPMG and REC). The permanent salaries index fell from 54.1 to 53.4, where anything above 50 means pay is still rising (Personnel Today).
Advertised pay is holding up better. Pay in job adverts on Indeed rose 4.0% in the year to August 2026, broadly unchanged over six months (Indeed Hiring Lab).
The reason for the slowdown is simple: there are more candidates for each job. When employers have more choice, they have less need to raise salaries to attract people. The exception is skilled and specialist roles, where competition for the best candidates is still pushing starting pay up (KPMG and REC).
Which workers are seeing the biggest pay rises?
Public sector workers are currently seeing faster pay growth than private sector workers: 6.3% against 2.9% for regular pay (ONS). Within the private sector, wholesale, retail, hotels and restaurants saw the fastest growth at 3.1%, and construction the slowest at 0.3% (ONS).
For graduates, the most recent benchmark is a median starting salary of £33,000 across ISE member employers (ISE Student Recruitment Survey 2025, via Personnel Today). The 2026 survey is due on 14 October and we will update this page when it lands.
What is the minimum wage in 2026?
From April 2026 (gov.uk):
| Age group | Hourly rate |
|---|---|
| 21 and over (National Living Wage) | £12.71 |
| 18 to 20 | £10.85 |
| Under 18 | £8.00 |
| Apprentice | £8.00 |
The Low Pay Commission's central estimate for the National Living Wage from April 2027 is £13.18, within a range of £13.02 to £13.34 (Low Pay Commission). The government usually confirms the new rate around the Budget, which is on 28 October 2026.
What does this mean when you negotiate?
- Know the benchmark. A 3% rise is typical this year. Anything less is likely to fall behind inflation, so it is reasonable to ask why.
- Specialist skills still carry weight. Employers are still paying up for skilled and hard-to-find candidates, so evidence of specific, in-demand skills is your strongest lever.
- Use advertised pay. Job adverts are rising faster than settlements, so the market rate for your role may be higher than your current employer's offer. Compare like-for-like adverts before a review or interview.
Our guide to answering salary expectation questions covers how to name a number without underselling yourself, and our monthly look at the UK job market puts pay in the wider context.
Career Intelligence shows typical pay for the roles you are considering, so you negotiate from the market rate rather than a guess. Try for free at mypathfinder.uk
This page is updated monthly as new data is released. Last updated: 9 October 2026.