Barclays workers secure 5.35% pay rise as 20,000 UK staff benefit
Around 20,000 Barclays employees across the UK are set to receive a pay rise of more than 5% following the approval of a new pay agreement, providing a significant boost for thousands of banking workers during a period of ongoing cost-of-living pressures.
The agreement delivers a 5.35% salary increase and is understood to cover employees below vice president level within Barclays’ UK operations. The increase will benefit staff working across branch networks and head office functions but does not extend to employees within the bank’s investment banking division.
The latest deal means many Barclays workers will receive a pay increase above current inflation levels, helping to protect the value of their earnings at a time when household budgets continue to face pressure from rising costs.
A Barclays spokesperson welcomed the agreement, stating:
“We’re pleased to have reached agreement on our new pay proposal, following constructive discussions and approval by members.
The pay deal reflects our continued focus on supporting our fair pay agenda, ensuring colleagues are recognised fairly, competitively and in a way that is sustainable for the organisation.”
The announcement comes against a backdrop of strong financial performance at the banking giant. Barclays distributed approximately £2.2 billion in bonuses to eligible employees during 2025, representing an increase of 15% compared with the previous year.
While bonus awards are generally concentrated among senior executives, investment bankers and employees directly linked to financial performance, the latest pay agreement provides a broader benefit to thousands of workers across the organisation.
According to Barclays’ latest published figures, the median total pay for UK employees stood at £60,603 during 2025, highlighting the scale of the workforce covered by the agreement.
Executive pay continues to attract attention across the banking sector. Barclays Group Chief Executive Officer, C. S. Venkatakrishnan, received a remuneration package worth approximately £15 million during 2025, up from £11.6 million in the previous year.
The banking sector has undergone significant change since the removal of restrictions on bonus payments. In 2024, Barclays became the first major UK bank to remove the former EU bonus cap for certain senior banking employees. The change allowed designated “material risk-takers” to earn bonuses worth up to ten times their basic salary, with around 1,600 employees expected to be affected.
For many workers, however, base pay remains the most important component of overall earnings. Salary increases such as this one provide certainty and stability that annual bonus arrangements often cannot.
Jonathan Morgan, spokesperson for The Workers Union, said:
“Any increase that helps workers keep pace with rising living costs will be welcomed by employees and their families. Banking staff play a vital role in supporting customers, businesses and communities across the UK, and it is important that their contribution is recognised through fair and sustainable pay.”
The agreement will now be implemented across the eligible workforce, with thousands of Barclays employees expected to see the increase reflected in their future pay packets.
As UK employers continue to balance rising operational costs with the need to attract and retain skilled staff, the latest Barclays settlement may be viewed as another indicator that competitive pay remains a key factor in maintaining a motivated workforce.
