How the average salary in the UK compares to Australia's salary index

What does 'average salary in the UK' mean for Australian readers?

When Australians search for the average salary in the UK, they usually want to know how British pay stacks up against what they earn at home. The short answer is that the typical full-time worker in the UK earns less than the Australian full-time benchmark, but the gap narrows once you account for different tax and pension systems. This article uses the Salary Index – where 100 equals Australia's full-time adult ordinary-time earnings of $108,352 a year – to give you a clear number.

The UK median full-time salary in Australian dollars

According to the Office for National Statistics (ONS), the median gross annual earnings for full-time employees who had been in their job for at least a year was £40,911 in April 2026. That's a 4.5% increase from the previous year. Using an exchange rate of roughly 1 GBP = 1.90 AUD, that converts to about AUD $77,731.

On the Salary Index, that gives a score of 72 – meaning the typical UK full-time worker earns 72% of the Australian full-time ordinary-time benchmark. For context, Australia's national minimum wage (from 1 July 2026) sits at index 48.2, and the retail trade industry average is index 75.9. So the UK median falls between Australia's minimum and its lower-paying industries.

Gross pay: what the numbers actually mean

The UK figure is a median, not a mean. Half of full-time UK workers earn less than £40,911, half earn more. Australia's benchmark is a mean – the average of all full-time adult ordinary-time earnings. The ABS reports that in May 2026, average weekly ordinary-time earnings for full-time adults were $2,083.70, annualised to $108,352. Men averaged $2,181 per week, women $1,934.50.

If we compare medians instead, the UK median weekly earnings for full-time employees were £811.20 (AUD $1,541). Australia's median weekly earnings for all employees (including part-time) were $1,436 in May 2026 (ABS). For full-time employees only, the Australian median would be higher, but the ABS doesn't publish a full-time median weekly figure in the same release. Still, the UK median weekly pay is slightly above the Australian all-employees median.

Superannuation vs UK pension contributions

One major difference is how retirement savings are structured. In Australia, the super guarantee is 12% from 1 July 2026, paid by employers on top of your gross salary. So an Australian worker on the benchmark of $108,352 would also receive $13,002 in super contributions, making total remuneration $121,354.

In the UK, auto-enrolment requires minimum total contributions of 8% of qualifying earnings (between £6,240 and £50,270 in 2026–27). The employer must pay at least 3%, the employee 5%. On a £40,911 salary, that's about £3,273 in total contributions, with the employer contributing roughly £1,227. That's a much smaller employer contribution than Australia's 12% on all earnings up to the maximum contribution base ($270,830).

Tax: how much you take home

Australian resident tax rates for 2026–27 (excluding Medicare) are:

• Nil on first $18,200
• 15% on income from $18,201 to $45,000
• 30% on income from $45,001 to $135,000
• 37% on income from $135,001 to $190,000
• 45% on income above $190,000 Plus a 2% Medicare levy.

On the Australian benchmark of $108,352, a resident with the tax-free threshold would pay about $25,438 in tax plus $2,167 Medicare levy, leaving a take-home of about $80,747.

UK income tax rates for 2026–27 are:

• 0% on first £12,570 (personal allowance)
• 20% on income from £12,571 to £50,270
• 40% on income from £50,271 to £125,140
• 45% on income above £125,140 Plus National Insurance contributions (12% on earnings between £12,570 and £50,270, then 2% above).

On £40,911, a UK worker would pay about £5,668 income tax and £3,401 National Insurance, leaving a take-home of about £31,842 (AUD $60,500). That's significantly less than the Australian take-home on the benchmark, but the UK worker's gross is also lower.

Industry and state comparisons

Australia's industry indexes show wide variation. Mining sits at 154.7, professional services at 114.7, while retail trade is 75.9 and accommodation and food services is 72.5. The UK median of 72 is closest to Australia's accommodation and food services index. By state, Tasmania has the lowest index at 88.6, while the ACT is highest at 109.9. The UK median would be below every Australian state and territory.

What this means for your pay expectations

If you're an Australian considering a move to the UK, expect a lower gross salary in pounds, but also different living costs, especially housing in London. The UK median is about 28% below the Australian benchmark, but after tax and pension contributions, the gap may narrow slightly. Use the Salary Index to compare any specific role or industry. For detailed award rates and minimum wages, see our pay guides.

Caveats and data sources

The UK data is provisional from the ONS Annual Survey of Hours and Earnings, April 2026. Australian data is from the ABS Average Weekly Earnings, May 2026. Exchange rates are approximate and change daily. The UK median is for full-time employees who have been in the same job for at least a year, which may exclude some lower-paid workers. The Australian benchmark is a mean of all full-time adult ordinary-time earnings, which includes higher earners and pulls the average up.

For more on how the index works and to compare other countries or occupations, visit Salary Index or explore industries and states.