Workers in Northern Ireland have experienced real wage growth exceeding inflation for the third year running, with pay rises reaching 3.1% when adjusted for price increases. According to BBC News, this performance surpassed the UK average of 2.8%, marking a significant recovery after the real earnings declines recorded in 2022 and 2023.
Real pay, which measures the purchasing power of wages after accounting for inflation, serves as a key indicator of changing living standards. The data comes from the Annual Survey of Hours and Earnings (ASHE), compiled by the NI Statistics and Research Agency (Nisra). The sustained growth over three years demonstrates that Northern Ireland workers have begun to rebuild the financial ground lost during the earlier period of wage stagnation.
This positive wage trajectory aligns with broader economic momentum in the region. Northern Ireland achieved the strongest growth in real disposable income of any UK region in 2024, rising 4.1%, driven by inflation-linked increases in benefits, pensions and minimum wage alongside rising private sector wages. Additionally, Ulster University's Economic Policy Centre has lifted its Northern Ireland growth forecast to 1.6% for this year and says the region should outperform the UK average over five years.
How do Northern Ireland wages compare to the rest of the UK?
The typical full-time worker in Northern Ireland earned £38,200 in 2026, compared with £40,900 for the UK as a whole, according to Nisra's findings. This gap reflects both regional economic differences and variations in employment composition across sectors and occupations.
Where are the biggest differences between sectors?
Real earnings growth diverged significantly between the public and private sectors during 2026. Private sector real earnings increased by 3.7%, substantially outpacing the 1.9% growth recorded in the public sector. When measured against 2019 levels, the contrast becomes even more pronounced: private sector real earnings have risen by 12.3% over the seven-year period, while public sector earnings have grown by only 2.0%.
Despite the slower growth rate, public sector workers continue to earn more in typical weekly terms. Public sector employees received average weekly earnings of £840, compared with £708 in the private sector. Nisra noted that some of these differences stem from workforce composition variations. The private sector encompasses many of the lowest-paid occupations, particularly in hospitality and retail, whereas the public sector contains a larger concentration of graduate-level and professional roles that command higher salaries.
Which areas of Northern Ireland have the highest earnings?
Geographic variation in earnings remains significant across Northern Ireland. Employees working in Belfast recorded the highest typical weekly earnings in 2026 at £813, while those in Causeway Coast & Glens had the lowest at £641. When measured by residence rather than workplace, Lisburn & Castlereagh residents earned the highest typical weekly amount at £815, with Causeway Coast & Glens residents again recording the lowest figure at £666.
How much has inflation distorted the wage picture?
The gap between nominal and real earnings growth illustrates inflation's substantial economic impact over recent years. Between 2019 and 2026, cash earnings across Northern Ireland rose by 41.1%, yet real earnings—adjusted for price increases—grew by only 7.1%. This disparity underscores how high inflation has been a dominant economic force throughout this period, eroding much of the apparent wage growth that workers experienced in nominal terms.
What is the ASHE survey and how reliable is it?
The Annual Survey of Hours and Earnings represents a UK-wide employer survey based on a 1% sample of employee jobs. Data collection relies on HM Revenue and Customs' Pay As You Earn (PAYE) records, providing a comprehensive and administratively sourced foundation for the earnings analysis. This methodology ensures the figures reflect actual payroll data rather than survey responses, enhancing their reliability for policy and economic analysis.
Key Facts:
- Northern Ireland real pay rose 3.1% in 2026, exceeding the UK average of 2.8%
- Real earnings have increased for three consecutive years after declines in 2022 and 2023
- Private sector real earnings grew 3.7% compared to 1.9% in the public sector
- Typical full-time worker in Northern Ireland earned £38,200 versus £40,900 across the UK
- Cash earnings rose 41.1% since 2019, but real earnings only increased 7.1% after inflation adjustment
