There’s absolutely no doubt that £150k is a great salary in the UK but just how good is it compared to the rest of the UK. In this article, we are going to take a look at the percentage of individual earners who are earning over £150k and what percentage of earners they represent.
It’s always interesting to see where you stack up against your counterparts. By analysing the data from the government we can find out how well you are actually doing. Let’s jump in.
What Percentage Of Individuals In The UK Earn Over £150k?
In the UK, earning over £150k per year puts you in the top 2% of earners in the country. This puts you in the 98th percentile. If you are earning over £150k, you are earning considerably more than the rest of the population. You’re also closing in on that top 1% stat. To get there you need to earn over £183,000 per year.
This chart was created from the latest government data on percentile points of the income distribution.
What Is £150k After Tax?
While earning £150k is great, you don’t get to take all of that home. In fact, a massive chunk is going towards income tax and National insurance.
On a £150,000 salary, you will pay a total of £47,428 in Income Tax and £8,236 in National insurance for the year 2023/2024. Each month you will receive £7,861 take-home pay after tax. Your marginal tax rate is 43.3%, while your average tax rate is 37.1%.
Here’s how it breaks down:
Is £150k A Good Income In The UK?
Reaching an income of £150k in the UK is very impressive. Not many people will reach this level in their careers. If you’ve got there, you’ve probably worked extremely hard for a long period of time.
Even in the most expensive places in the UK such as London, you will be able to live a very comfortable lifestyle with a nice house/apartment and multiple vacations per year. If you live in a cheaper cost-of-living area, you’re £150k per year will go a very long way allowing you a very comfortable life.
Jobs In The UK That Pay £150k Per Year Or More
You may be wondering what type of jobs in the UK pay this sort of salary. £150k is a lot and there are not many industries that offer this level of salary. Let’s take a look at the few that do:
- Surgeon: Surgeons perform operations to treat diseases, injuries, and deformities. Specializations like neurosurgery or cardiac surgery often come with high earning potential.
- Corporate Lawyer: Corporate lawyers advise and represent corporations regarding legal issues, including mergers, acquisitions, and intellectual property matters.
- Investment Banker: Investment bankers assist companies and governments in raising capital, through the issuance of stocks and bonds, and advise on mergers and acquisitions.
- Chief Executive Officer (CEO): CEOs are the highest-ranking individuals in a company or organization, responsible for making major corporate decisions and managing overall operations.
- IT Director/Chief Information Officer (CIO): IT Directors or CIOs oversee the information technology strategy of an organization, ensuring that systems, infrastructure, and IT staff support the company’s goals effectively.
- Commercial Airline Pilot: Senior pilots, especially those working for major airlines and with many years of experience, can command high salaries.
- Professional Athlete: Top-tier athletes in sports like football, rugby, or motorsport, especially those with lucrative sponsorship deals, can earn substantial incomes.
- Consultant Surgeon: Consultant surgeons are senior doctors who manage patient care and lead surgical procedures, often specializing in a particular field such as orthopedics or cardiology.
- Senior Financial Manager/CFO: Chief Financial Officers (CFOs) manage a company’s financial planning and report on financial performance. They also analyze data to inform company strategies.
- Pharmaceutical Sales Director: Sales directors in the pharmaceutical industry manage sales teams, strategies, and operations to achieve revenue targets, often earning high salaries, especially if they successfully drive significant profits.
Final Thoughts
Ultimately, if you are earning over £150k per year you are in the upper echelon of earners in the country. You’re a long way from those earning the median average salary of £33,280. It’s no easy feat to get to this level of income, so congratulations if you made it. It’s now time to push for that top 1% status.
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