Rising pay rate trends in engineering: What you need to know
Engineering pay rates are rising quickly across the UK. In 2025, this trend is being driven by several key factors: inflation, ongoing skills shortages and rapid growth in sectors such as renewables, nuclear and advanced manufacturing. For employers and candidates alike, understanding how and where salaries are changing is vital to staying competitive in an increasingly talent-led market where effective hiring and career planning is crucial.
National and regional salary growth
According to The Engineer’s 2025 Salary Survey, the average engineering salary in the UK is now £61,200, representing an increase of 3% year-on-year. While this might appear modest in the context of inflation (currently at 3.6% in June, above the Bank of England’s forecast, and likely to peak at 3.8% later in the year, according to analysts at Deutsche Bank), certain regional and sector-specific trends reveal even more dynamic changes.
London continues to command the highest salaries, largely due to the concentration of senior, high-responsibility roles and major infrastructure projects
Northern England salaries now average £60,000, with engineers reporting high job satisfaction and an improved work/life balance
The South West has seen the sharpest salary rises, particularly in manufacturing, for CNC Programmers, Field Service Engineers and Electrical Engineers who’ve seen above-average increases
Wales is also showing strong growth with R&D investment and clean technologies lifting pay for Production Engineers, EHS Managers and Maintenance Managers
The North West has seen an increase of 5.1% in average pay in both traditional and advanced engineering fields, making it one of the UK’s strongest performing regions this year.
Sector-specific rises
Some sectors are seeing particularly strong salary growth:
Renewables and nuclear lead the way, with average pay increases of 8%, driven by clean energy and long-term infrastructure projects, reflecting both government investment and their central role in the UK’s urgent net-zero ambitions
Oil & gas remains the highest-paying sector, despite market volatility, with average salaries reaching £68,500, reflecting the continued demand for specialist, project-based expertise in complex energy environments.
These shifts emphasise just how much emphasis employers are placing on technical knowledge and niche skills, especially in sectors crucial to the UK’s future energy and infrastructure goals.
However, these sectors are not just reacting to market conditions, they’re actively reshaping the value of engineering expertise. Employers in these industries are acutely aware that failure to meet market expectations risks losing top-tier talent to more agile, better-paying competitors. As competition intensifies further, salary is fast becoming a strategic lever in both attraction and retention.
Hot jobs with premium pay
Insights from our active job listings align with the data from the survey.
Permanent positions in energy, renewables and nuclear are seeing strong growth, with positions such as QC Engineers, Project Engineers and Electrical Maintenance Engineers seeing significant rises of up to 8%.
Starting salaries for permanent roles in UK manufacturing, particularly within automation, electrical design and systems engineering, saw the steepest salary increases in April, with the Midlands experiencing the strongest growth.
Hourly contract pay for temporary workers is also increasing, particularly for project and commissioning engineers in renewables and nuclear energy as well as infrastructure, but the rate of growth for permanent salaries is outpacing it, particularly in manufacturing.
Influencing factors for this include the demand for highly skilled workers, the desire for long-term workforce stability, the need for job security and the availability of benefits packages which impact pay rates for both permanent and contract positions.
Advice for employers
Employers are having to respond quickly and effectively to this new sector reality. With above-inflation salary expectations becoming the norm, particularly within growth sectors, organisations are revising both their compensation strategies and their broader employee value propositions (EVPs).
To remain competitive, they should consider:
Real-time salary benchmarking to ensure offers remain accurate and competitive. Adjust for regional and sector-specific dynamics
Flexible working arrangements, particularly in manufacturing which has been traditionally resistant to change. Innovative shift models, such as compressed work weeks or months, are becoming key differentiators for attracting and retaining skilled professionals
Invest in a compelling EVP that not only includes salary, but offers wellbeing initiatives, development opportunities, a clear career path and job satisfaction.
In addition, employers may also want to consider balancing wage growth with improving operational efficiency, pricing reviews and renegotiating client contracts, to manage the financial impact.
Advice for employees
For engineering professionals, 2025 presents a strong opportunity to negotiate more confidently, especially in high-growth sectors such as renewables, energy storage and automation. However, success in securing the best package in this strong market requires strategy and awareness:
Invest in upskilling – digital controls, systems integration and ESG-compliant design skills within sustainability, systems thinking and advanced manufacturing technologies are in high demand
Consider relocating – regions outside London, such as Wales or the South West, now offer strong salaries, a better work/life balance and long-term opportunities
Be selective – with more employers offering flexibility, improved leave policies and tailored benefits, many engineers are prioritising lifestyle over pay
Know your worth – salary expectations have shifted, especially in high-growth sectors such as renewables, automation and systems engineering, so consider benchmarking to get an accurate reflection of your true value.
In this post-COVID era, we’re seeing candidates becoming more selective, and placing a premium on work/life balance and purpose-driven employment. This is a marked shift from chasing the highest salary to choosing employers who support flexible working, career development and personal wellbeing, and employers which offer both are already seeing the rewards.
How Employment Solutions can help
As engineering continues to drive innovation and infrastructure in the UK, pay rates across the sector are rising. However, so are expectations. For employers, this means being prepared to offer more competitive packages and flexible working options. For candidates, it’s an opportunity to take your next career step with confidence. Understanding pay trends is a necessity for both, and aligning your expectations with market realities is the smartest strategy in 2025.
If you’re navigating these shifts, whether as a hiring manager or as a potential employee, our specialist engineering recruitment team is here to help. From tailored salary benchmarking to personalised career advice, we’re here to support your next move.Get in touch today to find out more.
