UK Wage Growth Slows to 3.5% Excluding Bonuses in Q2 2026 as Private Sector Softens
New Office for National Statistics data shows average regular earnings grew 3.5% year-on-year in the April–June quarter, down from earlier months. Private sector wage gains remain weak, while public sector growth remains stronger.
Annual growth in employees' average earnings was 3.5% for regular earnings (excluding bonuses) and 4.1% for total earnings (including bonuses) for April to June 2026. The Office for National Statistics release on 18 August marks the latest official snapshot of pay trends across the UK.
Who's Getting Paid What
The construction sector had the slowest regular earnings annual growth rate, down on the year by 0.1%. The finance and business services sector and manufacturing sector both remained relatively stable, with annual growth of 2.3% and 2.8%, respectively. Public sector workers continue to outpace private sector counterparts as pay awards from earlier in the year take effect.
Wage growth has moderated notably from 2025 peaks, reflecting softer labour market conditions and cooling recruitment. For expats negotiating salaries or evaluating job offers in the UK, the 3.5% baseline suggests modest annual pay increases can be expected, though sector matters significantly. Private sector roles—particularly in finance—offer more restrained raises, while construction lags behind inflation entirely.
Sources
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