As you gain more experience in the workplace, your value to employers should increase, and your salary should follow suit. But, with many employees left wondering if they’re underpaid, Instant Offices has analysed the latest data to uncover how both age and gender impact your wage, exploring how women can experience a cumulative shortfall over a 40-year career reaching nearly £93,400.
What is the average salary in the UK?
In 2024, the average median annual earnings for full-time employees in the United Kingdom were approximately £37,430, up £2,467 from 2023. For graduates entering the workforce in 2025, average salary is £31,000, ranging from £23,000 to £43,000 Depending on the sector and location.
As you progress in your career, salaries generally rise, peaking in the 40–49-year age group. The jump between 29 and 30, however, is quite significant, rising by £7,696, so if you enter your 30s on less than £39k, you may be underpaid.
| Age | Annual Salary |
| 18-21 | £24,440 |
| 22-29 | £32,292 |
| 30-39 | £39,988 |
| 40-49 | £42,796 |
| 50-59 | £40,456 |
| 60+ | £36,036 |
The Gender Pay Gap – Who’s Losing Out?
While these numbers show how pay develops over time, breaking them down by gender reveals a deeper problem. The UK’s average gender pay gap stands 9%, but this gap isn’t static, growing as careers progress.
At entry level, the gap is at its smallest but men aged 18–21 still earn £520 more than women the same age. But by the time employees hit their 40s, women earn almost £3,000 less per year than men on average – despite this being the peak earning decade. A woman in their 40s earning £42,000 is on track with their peers, but that’s still almost £3,000 less than the average man of the same age.
| Age | Men Annual Gross Pay | Women’s Annual Gross Pay |
| 18–21 | £24,960 | £24,440 |
| 22–29 | £33,176 | £32,292 |
| 30–39 | £41,652 | £39,988 |
| 40–49 | £45,552 | £42,796 |
| 50–59 | £43,940 | £40,456 |
| 60+ | £38,636 | £36,036 |
The data shows that inequality compounds over time. While the difference in pay may start small at entry level, it widens significantly in mid-career, particularly between the ages of 30 and 59. By the time women reach their 40s and 50s, they are losing thousands of pounds each year compared to their male peers, with the total cumulative shortfall over a 40-year career reaching nearly £93,400.
This disparity is staggering, and it only reflects baseline average annual income, not accounting for salary-based bonuses, pensions and savings, directly impacting long- and short-term financial security. When these factors are included, the true lifetime cost to women likely significantly exceeds £100,000, highlighting that the gender pay gap is not just a momentary difference, it’s a career-long inequality with serious lifetime consequences.
| Age Range | Men’s Annual Pay | Women’s Annual Pay | Annual Gap | Years in Bracket | Gap Over Bracket | Cumulative Lost Earnings |
| 18–21 | £24,960 | £24,440 | £520 | 4 | £2,080 | £2,080 |
| 22–29 | £33,176 | £32,292 | £884 | 8 | £7,072 | £9,152 |
| 30–39 | £41,652 | £39,988 | £1,664 | 10 | £16,640 | £25,792 |
| 40–49 | £45,552 | £42,796 | £2,756 | 10 | £27,560 | £53,352 |
| 50–59 | £43,940 | £40,456 | £3,484 | 10 | £34,840 | £88,192 |
| 60–61 | £38,636 | £36,036 | £2,600 | 2 | £5,200 | £93,392 |
Combating the Gender Pay Gap
Real change requires employers to act and there are a few key strategies employers can put in place to help reduce the gender pay gap:
- Conduct Pay Audits
Regularly review salaries across all levels to identify gender disparities. Transparent audits help uncover gaps early and ensure equitable pay.
- Implement Transparent Salary Bands
Clearly define pay ranges for each role. Transparency reduces bias, ensures fair progression, and allows employees to understand what they can earn.
- Support Career Progression for Women
Encourage promotions and leadership opportunities for women. Mentorship programs, sponsorship initiatives, and unbiased performance reviews help women advance at the same pace as men.
- Offer Flexible Working and Parental Support
Provide flexible hours, remote working options, and robust parental leave policies. Reducing the impact of childcare and domestic responsibilities helps women maintain career momentum.
- Monitor Recruitment and Promotion Practices
Use structured interviews, objective performance metrics, and diverse hiring panels to reduce bias in recruitment and promotions.
- Invest in Professional Development
Offer training, upskilling, and industry certifications equally to all employees. Supporting women’s growth enhances skills and reduces the long-term pay gap.
The gender pay gap is more than just a statistic; it is a career-long inequality with real financial consequences, costing women tens of thousands of pounds over a lifetime. While women can take steps to advocate for themselves, lasting change requires employers to act. By implementing fair pay practices, supporting career progression, and addressing structural barriers, businesses can ensure that talent and contribution, not gender, determine earnings.
