Set the right pay rates

Making pay comparisons


To make sure you are getting your pay rates right, consider checking whether or not your rates are competitive with other comparable businesses in your industry and region.

Benchmarking pay

Comparisons can be made with other businesses by region, industry or other factors, such as business size through benchmarking.

A number of organisations provide benchmarking information on rates of pay and payment systems.

Regional differences in pay

Almost every worker is entitled to be paid at least the National Minimum Wage or National Living Wage. The minimum wage rates vary according to age but not location, ie they are the same regardless of where you are in the UK.

Read more on the National Minimum Wage and National Living Wage.

However, for jobs and industries that pay higher than the NMW, there are often regional differences in pay rates. Often these can occur because of, for example:

  • local problems in hiring and keeping workers
  • higher living costs specific to particular areas

Differences in pay across industries

Different factors also influence pay in different industry sectors. Examples include the need for specialist skills or experience, whether the right workers are available, the demand for the products or services, job location and the nature of the work.

  • LRA Workplace Information Service
    03300 555 300
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