Fresh out of university and ready to dive into the world of work? Firstly, congrats on earning your degree! But finding your first graduate job can be daunting. You’ve spent years gaining the skills and knowledge, now it’s time to put them to good use. One of the key things you’ll want to think about when weighing up job offers is the graduate salary. How much can you expect to earn as a new graduate in the UK job market today? Let’s take a closer look.
Overview
In 2022, the average starting salary for university graduates was £24,291. But averages only tell part of the story. While some graduates earn closer to £15,000, others report salaries exceeding £60,000 right off the bat. Factors like your industry, degree subject and location (hello London living costs!) impact what you can expect to earn. Across an entire career, the typical graduate salary rises to about £36,000.
Rather than focusing on averages alone, do your research on pay scales in your chosen field. Talk to professionals working in those roles to get an idea of the salary range. Consider the full compensation package too – bonuses, benefits, training and advancement opportunities all sweeten the deal.
We’ll now look at the average salary for graduates in further detail, as well as explore what can affect your salary, which industries pay the most, and how to find your dream graduate job.
What Is The Average Graduate Salary In The UK?
In 2022, the typical starting pay for graduates was around £24,000 annually. To put that in context, it’s about £7,000 more than school leavers who didn’t attend university. Not too bad for a few years of extra study!
Since most graduates are 21 when they finish studying, minimum wage laws also impact earnings. The minimum age for 21-22-year-olds was £9.18 per hour in 2022. Working full-time at 40 hours a week, that comes out to about £19,094 annually – £5k below the graduate average.
*As of April 2023, the national minimum wage has since risen to £10.18 per hour or £21,174 annually (see gov.uk for more).
But don’t get too fixated on that £24k figure. Salaries often increase quickly in the first years of your career as you gain experience and skills. Across an entire working life, the average pay for graduates grows to approximately £36,000.
You also likely have a grace period before repaying student loans. You don’t start paying back until you hit £27,295 in England and Wales. So, at an average starting salary, you’ll get a few years to establish yourself before the deductions begin.
While pay is important, don’t forget to weigh up other factors too – company culture, opportunities to learn and grow, and work-life balance. With some smart planning and hard work, you can launch the career of your dreams as a fresh graduate.
What Affects A Graduate’s Starting Salary?
While the average starting pay for recent grads is around £24,000, some roles pay significantly more or less. For instance, jobs in creative arts tend to be on the lower end, averaging £20,000, while medicine and engineering are at the top with £35-30,000. Learn more about the highest-paying graduate jobs in the UK.
Location also impacts salary. Due to higher living costs, the minimum wage in London is higher than in the rest of the UK. Being a major business hub also means more high-paying jobs, so average earnings are generally higher in the capital.
The type of degree you earned makes a difference too. Completing a Master’s or PhD signals advanced expertise compared to a Bachelor’s degree. So while not required for success, these qualifications can boost starting pay due to your higher-level skills and knowledge. More on this later.
What Is The Average Postgraduate Salary?
While a standard undergraduate degree is great, further study can boost your average salary. According to government statistics, postgraduates earn around £45,000 annually – about £6,500 more than those with only a Bachelor’s can expect to earn across their career.
Like any career, you’ll likely start lower on the pay scale fresh out of school, then see your salary rise steadily with experience. But postgrad qualifications give your earnings potential a head start by qualifying you for more senior roles with higher pay.
Besides the financial incentives, a Master’s also allows you to deepen your knowledge in a speciality area of your choosing. And continuing to learn is incredibly rewarding!
What Is The Highest Graduate Salary In The UK?
Within specific industries, STEM careers like medicine and engineering tend to be top earners. But for graduate schemes, financial firms often pay the most. The top scheme listed pays a whopping £65,000! But these ultra-high salaries are rare and fiercely competitive.
To have a shot at the top finance jobs, you’ll need very specific degrees and be prepared to battle hoards of other applicants. Overall, it’s smarter to focus your search on roles that fit your unique skills and passions.
Landing a graduate job that engages you and helps you grow will be far more rewarding long term than a short-lived stint chasing money. With some self-reflection and targeted applications, you can launch a career doing what you love at a company you believe in. The right fit is worth far more than the highest figure on a pay stub.
Finding Graduate Jobs
Graduating is an incredible achievement, but deciding what’s next can be daunting. At Developing a Student, our goal is to support graduates as they start their career journey. We work with the top graduate employers to connect the finest new talent with the best graduate jobs.
Check out our Graduate Jobs Board for the latest opportunities near you.
Looking for career advice? Our resource hub is packed with up-to-date information on graduate jobs, industry trends, and advice for graduate job seekers. We cover everything from working abroad to the best UK cities for graduate jobs.
You can also catch what’s new on our blog every Wednesday.
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