Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Social mobilityEquality, diversity and inclusionLatest NewsPay & benefitsUK regional diversity

Working class employees earn almost £7,000 less than peers

by Jo Faragher 14 Nov 2022
by Jo Faragher 14 Nov 2022 SMF chair Alan Milburn called the class pay gap 'morally unjust'
Shutterstock
SMF chair Alan Milburn called the class pay gap 'morally unjust'
Shutterstock

People from working class backgrounds earn on average £6,718 per year less than those doing the same jobs from a more privileged background, the Social Mobility Foundation has found.

According to the SMF, today is Class Pay Gap Day; the day in the year when those from working class origins in higher managerial or professional roles stop earning relative to their peers who hail from professional-managerial backgrounds.

The SMF calculates socio-economic background based on an employee’s parents’ occupation at age of 14, a measure recommended by the Social Mobility Commission. If an individual’s parents were considered to have a professional or managerial role at this point, the individual is deemed to come from a professional and more privileged background.

Class pay gap

Law firm dislodges PWC to top 2021 social mobility index

Make class a protected characteristic, urges Social Mobility Commission

Could a scholarship help you achieve your people goals?

Those from privileged backgrounds in the most prestigious jobs are paid over £51,000 a year, but those from working class origins in the same jobs are paid less than £45,000 per year, the SMF found.

People from working-class backgrounds earn 13.05% less than their most advantaged peers, meaning they work almost one day in seven, per year, for free.

Adding gender or ethnicity into the calculation shows even deeper divisions. Working class women are paid £9,450 less than their male colleagues, while people of Bangladeshi and Black Caribbean heritage from working class backgrounds are paid £10,432 and £8,770 less respectively than their White peers in the same jobs.

The class pay gap is most defined if you are a CEO, according to the SMF. CEOs from working class origins earn £16,749 less per year than their privileged counterparts, followed by finance managers, who face a class gap of £11,427.

The gap is markedly smaller in science roles, social work, engineering, journalism and academia. Scientists from working-class origins do not face any pay penalty at all.

The SMF found that the class pay gap is highest in Northern Ireland, where employees from working-class backgrounds earnt more than £8,500 less than their peers from professional households.

Chair of the SMF, Alan Milburn, said that people on the receiving end of the class pay gap were being “hit by a double whammy as the cost of living crisis also eats into their incomes”. He added that the class pay gap was an “indictment of professional employers”, “morally unjust” and “economically illiterate”.

Milburn pointed to employers that have already committed to publishing pay data on employees’ socio-economic backgrounds, including PwC, KPMG and Clifford Chance. He urged the government to introduce measures to require employers to publish their class pay gap in the same way they publish their gender pay gaps.

“Some are setting targets to drive their progress, recognising the positive impact that reducing class inequality can have on a company’s culture and, ultimately, its business performance. But for now, they are in a minority,” he added.

“At a time when incomes are being squeezed, such a legal change can be a part of the solution to combat the cost of living crisis. It would be an important step towards creating more of a level playing field for those from disadvantaged backgrounds.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The Social Mobility Foundation publishes a list of employers performing well on improving access and career progression for people from a wider range socio-economic backgrounds. Last year law firm Browne Jacobson topped the list.

Diversity and inclusion opportunities on Personnel Today


Browse more Diversity and inclusion jobs

Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

previous post
NHS waits hit another record, increasing the concern for OH
next post
KFC to ramp up youth recruitment

You may also like

Connect to Work: how businesses can play their...

2 May 2025

Eight new equality laws in the pipeline

10 Apr 2025

Ethnicity and disability pay gap reporting: Lessons from...

18 Mar 2025

City financial regulators scrap DEI measures

13 Mar 2025

Lower socio-economic background graduates ‘overlooked’ in hiring

7 Mar 2025

Zurich UK publishes social mobility pay data

12 Feb 2025

Tesco pledges 1,500 apprenticeship places by 2027

12 Feb 2025

Employers support crackdown on unpaid internships

23 Jan 2025

Why more social mobility means more productivity –...

18 Dec 2024

Investment management firms make DEI progress

22 Nov 2024

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+