What Is A Good Starting Salary For A New Grad In The UK?

A good starting salary is subjective, however some industries pay new grads £35,000 - £50,000 - which is considered a good salary in the UK.

Any new graduate will know the feeling. You’ve just left university and it’s time to dive into the working world. Suddenly, you’re scrolling through job ads in your spare time and you’re looking for some serious cash.

There’s pressure to find something you enjoy that will also allow you to be financially free.

But how do you know what a good starting salary actually is?

It may seem there are a million things to consider when getting your first job.

However, there are a few things to think about when looking at the starting salary of a role.

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What Is The Average Starting Salary For A New Grad?

Before deciding what a “good” starting salary is, let’s start by looking at the average salary.

A number factors come into play when determining a salary for new grads. These include the industry, level of education, location and special skills and qualifications required.

The current average graduate salary in the UK is £40,000 according to the Department for Education Official Statistics. However, this can be higher in industries like finance and law.

According to the High Fliers 2023 Report, the median starting salary for UK graduates in the “Top 100” employers sits around £30,000. However, it is worth noting that these figures might be slightly outdated and the median might not be the best metric to go by.

What Is A Good Starting Salary?

A good salary is subjective. There is no one right answer. Where you live, for example, and the industry you choose to work in, might affect your idea of a good salary.

For example, a “good” starting salary for an entry-level law job in London will be very different from a “good” starting salary for a customer service role in Manchester.

Thinking about your living expenses is a good place to start. Write down the cost of food, rent and socialising with your mates to see what salary could support you.

After tax deductions, a £25,000 salary will come to around £20,000. Whether this is enough to support you as a new grad is ultimately up to you.

Other factors may also come into play. As a new grad, there may be the option of bunking with your parents. Saving rent might mean you can sacrifice a higher income, but if you’ve decided to move to an expensive UK city, the average starting salary may not cut it.

Can You Negotiate A Good Starting Salary?

Picture the scene. A potential employer is offering an average starting salary, but you think you deserve a higher figure. Can you negotiate an average salary to a good one?

Usually, salaries for entry-level jobs are fixed. If you are enrolling in a graduate scheme, for example, all candidates will be paid the same. Other jobs may allow for some wiggle room.

If you do want to negotiate, start by thinking about what you bring to the table, and use this as leverage in negotiation.

Possessing the qualifications and skills that will benefit a gap the company is a great place to start. Research the role and think about how you might be able to bring a fresh approach to it to try and secure a higher starting salary.

What Else Should You Consider When Looking At A Starting Salary?

Beyond the numbers, it's important to think about the broader job offer and any benefits it might have. While salary is key, other benefits might help you save money in other areas. Here are a few elements to consider:

Employee Benefits

Many employers offer perks like health insurance, pension, travel allowances, or free gym memberships. These can help you save money in other areas of your life, offsetting the salary.

Opportunities for Growth

A lower starting salary might be worth it if the role comes with a clear path to promotion. It's important to think about the long-term salary progression, not just the place you start.

If the company can offer training or mentorship, that's also a big bonus.

Work-Life Balance

Don’t underestimate the value of work-life balance. Flexible working hours, remote work and generous holiday can be just as important as your take-home pay.

Location and Cost of Living

A higher starting salary in an expensive city might not stretch as far as a lower salary in a more affordable one.

Use cost-of-living figure out how far your salary will go, and factor this into your decision.

How Can You Boost Your Starting Salary as A Grad?

If you're looking to boost your salary, think about one of the below:

Upskill

Find relevant training programmes in your industry to help you stand out from the crowd. Employers love candidates who show initiative in growing their skills. Be one of them.

Use Internships and Work Experience

If you’ve got relevant experience, talk about it during job applications. Work placements, internships, or even freelance projects can help show your value and give you more power to negotiate.

Network

Sometimes, who you know can open doors to higher-paying jobs. Go to industry events, join professional groups, and connect with alumni or mentors in your field.

Starting Salaries For Grads

Research and budgeting are the key when working out a good starting salary.

Factors like the industry average, education level required, location and market demand can all help you make an informed choice. But to get the best idea, look at your living expenses and decide what kind of starting salary you want to earn. This will help you decide what a “good” salary is for you.

Above all, remember this figure is just the first step on the ladder. Your career trajectory and earnings can improve over time. As your experience and skill set grow, so too will your value. Once this happens, your bank account will be sure to see the results of your hard work.