How much do IT managers earn UK 2025?

UK IT managers earn £50,000-£80,000 on average, with senior roles and London positions reaching £90,000-£120,000+. Entry-level IT team leads start around £40,000-£50,000. Specialisations like cybersecurity or cloud architecture command premiums of £10,000-£20,000. Contractors earn £400-£700/day.

What is the average IT manager salary London?

London IT manager salaries average £65,000-£90,000, with senior IT managers earning £85,000-£120,000. Head of IT or IT Director roles can exceed £150,000 plus bonus. The London premium is typically 20-30% higher than UK average for equivalent roles.

Do IT managers get bonuses UK?

Most IT managers receive bonuses averaging 10-20% of base salary. Performance bonuses depend on project delivery, team KPIs, and company performance. Senior roles may have 20-30% bonus potential. Tech companies and finance sector typically offer higher bonus percentages.

Is IT management a good career in UK?

IT management offers excellent career prospects: strong demand, competitive salaries (£50k-£120k+), and diverse opportunities. Skills shortage means high job security. Career paths include CTO, Head of IT, or consultancy. Continuous learning is essential due to evolving technology.

IT manager vs software developer salary UK?

Mid-level IT managers (£55,000-£70,000) often earn similarly to senior developers (£60,000-£80,000). However, IT Director roles (£90,000-£150,000) typically exceed developer salaries. Contractors: IT managers £500-£700/day vs developers £400-£600/day. Management track offers higher ceiling but different skills.

How Much Do IT Managers Earn in the UK? — 2025/26 Salary Guide | PocketWise

IT management is one of the UK’s best-paid career paths, with strong demand across all sectors. This guide breaks down exactly what IT managers earn.

Read more: See our Salary By Profession guide for a complete overview of this topic.

IT Manager Salary Overview

Role	Salary Range
IT Team Lead	£40,000 - £55,000
IT Manager	£50,000 - £70,000
Senior IT Manager	£65,000 - £85,000
IT Service Manager	£55,000 - £75,000
IT Operations Manager	£55,000 - £80,000
IT Project Manager	£50,000 - £75,000
Head of IT	£80,000 - £120,000
IT Director	£100,000 - £150,000
CTO	£130,000 - £250,000+

Salary by Specialisation

Specialisation	Salary Range
IT Infrastructure Manager	£55,000 - £80,000
IT Security Manager	£65,000 - £95,000
Cloud Infrastructure Manager	£65,000 - £90,000
DevOps Manager	£70,000 - £100,000
Data Engineering Manager	£70,000 - £100,000
Software Development Manager	£65,000 - £95,000
Network Manager	£50,000 - £70,000
IT Service Delivery Manager	£55,000 - £80,000
IT Change Manager	£55,000 - £75,000

Regional Pay Differences

Region	IT Manager Average
London	£70,000 - £90,000
South East	£58,000 - £75,000
South West	£50,000 - £65,000
East of England	£55,000 - £70,000
West Midlands	£50,000 - £65,000
East Midlands	£48,000 - £62,000
Yorkshire	£48,000 - £63,000
North West	£50,000 - £65,000
North East	£45,000 - £60,000
Wales	£45,000 - £58,000
Scotland	£50,000 - £68,000
Northern Ireland	£42,000 - £55,000
Remote (UK-based)	£55,000 - £80,000

Salary by Industry

Industry	IT Manager Salary
Financial Services	£70,000 - £100,000
Investment Banking	£85,000 - £130,000
Technology Companies	£65,000 - £95,000
Consulting	£60,000 - £90,000
Pharmaceuticals	£60,000 - £85,000
Retail	£50,000 - £70,000
Manufacturing	£48,000 - £68,000
Public Sector	£45,000 - £65,000
NHS	£50,000 - £70,000 (AfC Band 8)
Education	£42,000 - £58,000
Charity/Non-profit	£40,000 - £55,000

Take-Home Pay Calculations

IT Manager (£60,000)

Deduction	Monthly	Annual
Gross Salary	£5,000.00	£60,000
Income Tax	£780.83	£9,370
National Insurance	£400.92	£4,811
Student Loan (Plan 2)	£194.25	£2,331
Take-Home (no loan)	£3,818.25	£45,819
Take-Home (with loan)	£3,624.00	£43,488

Senior IT Manager (£80,000)

Deduction	Monthly	Annual
Gross Salary	£6,666.67	£80,000
Income Tax	£1,447.50	£17,370
National Insurance	£581.58	£6,979
Student Loan (Plan 2)	£344.25	£4,131
Take-Home (no loan)	£4,637.59	£55,651
Take-Home (with loan)	£4,293.34	£51,520

Head of IT (£110,000)

Deduction	Monthly	Annual
Gross Salary	£9,166.67	£110,000
Income Tax	£2,697.50	£32,370
National Insurance	£798.75	£9,585
Personal Allowance	Reduced (£60k+ income)
Take-Home	£5,670.42	£68,045

Note: Over £100,000, personal allowance reduces by £1 for every £2 earned above £100k.

Contractor vs Permanent

Contractor Day Rates

Role	Day Rate
IT Manager	£400 - £550
Senior IT Manager	£500 - £650
IT Project Manager	£450 - £600
IT Security Manager	£550 - £750
Head of IT (Interim)	£600 - £900
IT Director (Interim)	£800 - £1,200

Inside IR35 vs Outside IR35

Aspect	Inside IR35	Outside IR35
Tax treatment	Like employee	Ltd company
Take-home (£500/day)	~£310/day	~£370/day
Holiday/sick pay	None	None
Pension	Your responsibility	Your responsibility
Risk	Lower	Higher

Contractor Earnings Example (£500/day)

Calculation	Inside IR35	Outside IR35
Days worked	220	220
Gross	£110,000	£110,000
Tax/NI/fees	~£42,000	~£32,000
Take-home	~£68,000	~£78,000

Bonus and Benefits

Typical Bonus Structure

Level	Bonus %	On £60k Salary
IT Manager	10-15%	£6,000 - £9,000
Senior IT Manager	15-20%	£12,000 - £16,000
Head of IT	20-30%	£20,000 - £36,000
IT Director	25-40%	£30,000 - £60,000

Common Benefits

Benefit	Typical Value
Pension (employer contribution)	5-10% of salary
Private healthcare	£1,000 - £2,000/year
Life insurance	4x salary
Car allowance	£5,000 - £10,000/year
Annual leave	25-30 days
Share options (tech companies)	Variable
Training budget	£1,000 - £5,000/year

Career Progression

Typical Career Path

Stage	Years Experience	Role	Salary
Entry	0-2	IT Support/Analyst	£25,000 - £35,000
Mid	3-5	Senior Analyst/Team Lead	£40,000 - £50,000
Management	5-8	IT Manager	£55,000 - £70,000
Senior	8-12	Senior IT Manager	£70,000 - £90,000
Director	12+	Head of IT/Director	£90,000 - £150,000
Executive	15+	CTO	£130,000 - £250,000+

Skills That Increase Salary

Skill/Certification	Salary Premium
Cloud (AWS/Azure) expertise	£5,000 - £15,000
Cybersecurity (CISSP)	£10,000 - £20,000
ITIL certification	£3,000 - £8,000
PMP/PRINCE2	£5,000 - £10,000
DevOps experience	£5,000 - £15,000
AI/ML knowledge	£10,000 - £20,000
Data engineering	£8,000 - £15,000
Financial services experience	£10,000 - £20,000

IT Manager Salaries by Company Size

Company Size	IT Manager Salary
Startup (<50 employees)	£45,000 - £65,000
SME (50-250)	£50,000 - £70,000
Mid-market (250-1000)	£55,000 - £80,000
Enterprise (1000+)	£65,000 - £90,000
FTSE 100	£75,000 - £110,000

Salary Negotiation Tips

What to Negotiate

Element	Negotiation Potential
Base salary	5-15% above offer
Signing bonus	£5,000 - £20,000
Annual bonus target	Percentage increase
Pension contribution	Extra 1-3%
Working from home	2-5 days flexibility
Training budget	Additional £2,000-5,000
Review timing	6 months vs 12 months

Market Rate Evidence

Source	What It Shows
Glassdoor	Company-specific salaries
Indeed Salary	Role averages
LinkedIn Salary Insights	Network data
Hays/Robert Half surveys	Industry benchmarks
Technojobs/CWJobs	Advertised salaries

Financial Planning at IT Manager Level

Monthly Budget (£60,000 salary, London)

Category	Monthly
Take-home	£3,818
Rent/mortgage	£1,500
Bills/utilities	£200
Transport	£200
Food	£400
Savings/investments	£500
Discretionary	£500
Remaining	£518

Tax Planning at Higher Incomes

Strategy	Benefit
Pension contributions	Reduce taxable income
Salary sacrifice	NI savings
ISA maximisation	Tax-free growth
Bonus sacrifice to pension	Avoid 40% tax
Company car vs allowance	Calculate which is better

Remote and Hybrid Work

Salary Adjustments

Work Pattern	Salary Impact
Fully remote (UK-based)	May be 5-10% lower than London
Hybrid (2-3 days office)	Usually no adjustment
London office, live elsewhere	Full London salary
Remote for London company	Often London salary

Popular Remote-First Tech Companies

Type	Approach
Tech giants	Hybrid or adjustments
Scale-ups	Often fully remote friendly
Traditional corporates	Hybrid (office expected)
Consultancies	Client-dependent

Job Market Outlook

Factor	Outlook 2025/26
Demand	Strong (skills shortage)
Salary growth	3-7% annually
Hot skills	AI, security, cloud
Remote opportunities	Stable/growing
Contractor market	Strong (IR35 adjusted)

How Much Do IT Managers Earn in the UK? — 2025/26 Salary Guide

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