Regional gap in managerial pay

Regional pay variation for managers is larger than that of manual staff, according to an Office of National Statistics report.

The report claims the difference occurs because employers base managerial salaries on local house prices.

The survey, published in Incomes Data Services’ Management Pay Review, shows management salaries regionally differ by up to 50 per cent compared to 30 per cent for manual employees. The average earnings of managers in large organisations in the UK is nearly £113,000. But the average managerial pay in London is almost £139,000, compared to Scottish managers who earn on average less than £58,000.

The IDS report says: “Rather than managerial pay running at similar levels across most of the country while manual wages vary greatly, the reverse seems to be the case.”

The report claims regional differences are linked to employers setting managerial pay based on the local cost of living, in particular house prices. IDS compared regional managerial salaries to house prices and claimed “a remarkably close fit”.


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