Pay increase please! £3,500 more needed to keep pace with inflation

A study done by RIFT Tax Refunds has disclosed just how much the average person would need to see their pay cheque increased in order to keep up with the ever-rising inflation along with what it means when it comes to the tax they pay, and the money left in their back pocket.

To start off, the data shows that the average UK gross salary is currently £37,235, yet when taking into account that inflation rises at a rate of 9.4% at present, household are feeling the pinch as their monthly pay simply isn’t stretching as far as it once was.

In fact, to match the current rate of inflation, the average person would need to see a pay rise to the tune of £3,500. While this would see their tax bills increase by £1,164 per year, it would also leave them with an additional £2,336 in the pocket.

Chief executive officer of RIFT Tax Refunds, Bradley Post, commented: “Many households are struggling to combat the increased cost of living due to the current rate of inflation, with many attempting to do so on a stagnant level of income that hasn’t seen the same level of growth.”

“In fact, in order to match this pace, the average person would need to see quite a considerable boost to their annual earnings to the tune of £3,500. However, the unfortunate reality is that many simply won’t and this will leave them at a severe disadvantage when it comes to managing their household finances."

Industries that need a boost

The average beautician would require a £1,461 increase in their annual gross earnings to keep pace with the current rate of inflation, paying £486 additionally in tax contributions, but taking home £975 per year.

Those working in construction would need to see a pay rise of £3,074, boosting their annual net income by £2,503, while increasing their tax bill by £1,022 per year.

The average nurse would need to take home an additional £3,138 per year which would increase their net income by £2,095 annually while seeing them pay £1,043 per year.

The average teacher also needs to earn £3,331 more than the current average earnings in order to battle the impact of inflation, seeing them take home an additional £2,223 after tax and paying £1,107 more in tax contributions.