Graduating from university and entering the workforce can be both an exciting and uncertain time in our lives.
When browsing through job advertisements, you may feel confused, trying to decode salary figures and Latin terms like pro rata or per annum. Don’t worry – this blog is your money advice toolkit to understand what salaries mean and why salary figures alone can be misleading without considering living costs, income deductions, and regional variation. Read on to learn more about salaries and how they may impact your career decisions. Plus, we’ve highlighted some tips and resources for managing your finances during the job search.
Graduate salaries explained – what’s normal?
Graduate starting salaries vary widely depending on the sector, location, and type of role. Here’s a brief overview. These are all rough estimates and subject to fluctuations:
- National median: Around £28,5001. Bear in mind, the £24,000 – £26,999 salary band contains the highest proportion of graduates aged 24 years and younger.
- Graduate schemes median: Often higher, with averages ranging from £30,000 to £35,0002. Some sectors offer significantly higher paying salaries for graduate trainees, such as law (starting salary: around £40,000-£60,000).
- Bristol university graduate median: £30,2503.
Here are definitions of some common salary phrases:
- Pro rata: Means “in proportion”. If you are working part-time or on a fixed-term contract, you will likely be paid ‘pro rata’ of what the full-time, annual salary is for that role.
- Per annum: Means per year/annually.
- Competitive salary: Sometimes an employer will only disclose salary information at the point of offering you a job. There are multiple reasons why employers might do this – including to be sure that applicants are focused on more than just the money. To estimate the salary range, you can research industry averages and compare against similar roles.
- Net and gross salary: Gross salary is the figure on the job advert. Net salary is your take-home pay after deductions such as income tax, employee national insurance contributions, student loan repayments, and pension contributions. To estimate your take-home pay, use a salary calculator.
What your salary affords you – regional differences
Cost of housing and other living costs vary depending on the UK region and city. The table below includes estimated costs for popular graduate destinations for Bristol alumni.
| City | Average monthly rent per room4 | Average monthly rent for 1-bed flat5 | Other monthly costs (bills, transport, food, leisure)6 |
| London | £995 | Around £1,500 but varies by borough – see London Rents Map) | £1,056 |
| Bristol | £740 | £1165 | £874 |
| Manchester | £701 | £969 | £870 |
| Cardiff | £661 | £885 | £807 |
Note – these averages are estimates and may be skewed by higher-end rents. Graduate house-shares are often more affordable than renting a one-bed or studio flat. Rental prices also vary within cities, so exploring neighbourhoods further out from the city centre can save you money. The ‘Other monthly costs’ quoted above may be mid to high estimates and will obviously depend on your individual life choices.
If lower cost of living is a key factor for you, you could consider more affordable graduate destinations such as Liverpool, Nottingham, Leeds, Birmingham, and Southampton. A lower salary in one of these cities may go further than a higher salary in London, once rent and transport costs are accounted for. Don’t forget to factor in relocation costs such as moving services or storage if needed.
Navigating salary expectations
It can feel disheartening if your first job offer is below the national or regional average. Don’t let that discourage you though, as many graduate roles offer quick progression and increased earnings. Salary is also just one part of the wider picture of whether a role is suited to you. Beyond your base pay, benefits such as training budgets, pension contributions, flexible working arrangements, and performance-related bonuses have real value.
There are also less tangible or ‘hidden’ perks to consider, such as workplace culture or proximity to where you live. All these factors can impact your job satisfaction and longer-term success. If you are comparing job offers, factoring in these benefits can change the overall appeal of different roles.
Salary expectations also vary widely by sector and often reflect the nature of the work. For example, graduate schemes in finance or law tend to offer higher starting salaries, but also typically include long working hours and high-pressured environments. On the other hand, roles in the charity or creative sectors may offer lower pay but might provide more flexibility.
According to Graduate Outcomes data, most Bristol graduates say their main reasons for taking a job was because it aligned with their career goals or offered valuable experience to reach their desired role – not solely because the job paid well. In other words, pursuing a high salaried role may not lead to the most fulfilling career path. Ultimately, your first graduate job is a stepping stone. Focus on what you can learn in the role, how it fits into your career journey, and whether it aligns with your personal values and lifestyle.
This segment from an article written by the Graduate Recruitment Bureau can help with managing salary expectations:
”Graduates should balance ambition with realism. While it is natural to want a high salary immediately after university, employers value experience as much as qualifications. In many industries, demonstrating commitment, building skills, and gaining achievements in the first few years are more important than initial pay. Approaching your career with a long-term perspective will help you make smarter choices and reduce frustration in the early years”.
Managing finances during the job hunt
While this blog has focused on graduate salaries, job searching itself can be a significant investment of time, money, and brainpower. Here are some tips for managing your money during the job hunt:
- Budget for the search: Travelling to interviews, workwear, and periods of unpaid volunteering can add up. Set a monthly job hunt budget and track your spending.
- Use university resources: The Careers Service and Bristol SU offer a Borrow a Blazer scheme if you need workwear for an interview.
- Consider temporary work: Part-time work or temp jobs can help bridge the gap while you search for a full-time position.
- Find out more about Universal Credit by using a benefits calculator to see if you’re eligible.
Next steps and resources
The following resources can help you build your understanding of graduate salaries and how to manage your money:
Remember: your first salary doesn’t define your future, but understanding it can help you make more informed and confident choices.
As a graduate, you have access to the Careers Service for three years after completing your degree. Check out our Support for graduates page for more information.
- Based on Graduate Outcomes data ↩︎
- Based on Times Top 100 and ISE data ↩︎
- Based on University of Bristol’s Graduate Outcome data ↩︎
- SpareRoom’s Quarterly Rental Index ↩︎
- ONS Private rent and house prices dataset ↩︎
- Numbeo cost of living data ↩︎