In order to match the current rate of inflation, the average person would need to see a pay rise to the tune of £3,500, research by RIFT Tax Refunds has revealed.
The average UK gross salary is currently £37,235 but with inflation rising at a rate of 9.4% at present, households are feeling the squeeze as their monthly pay simply isn’t stretching as far as it was.
While the rise would see their tax bill increase by £1,164 per year, it would also leave them with an additional £2,336 in their back pocket.
The average beautician would need to see a £1,461 increase in their annual gross earnings in order to keep pace with the current rate of inflation, paying £486 more in tax contributions but taking home £975 more per year.
Those working in construction would need to see a pay rise of £3,074, boosting their annual net income by £2,053, 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.
Bradley Post, CEO of RIFT Tax Refunds, said: “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.”
