Management accountancy salaries rise at twice national average
On top of base salaries, over half of CIMA students in the UK (58%) received a bonus in 2015
MANAGEMENT accountants are benefitting from salaries that are growing at twice the national average.
That’s the message from the CIMA, whose latest annual salary survey shows that qualified members earn £62,791, a 1.6% growth on the 2014 figure.
The current UK average salary is £27,200 in comparison, limping up by just 0.7% from the previous year, according to the Office for National Statistics. Even those still studying for their qualification reported a salary growth rate of 2.3% – earning an average annual base salary of £33,031 – 21% more than the national average.
On top of base salaries, over half of CIMA students in the UK (58%) received a bonus in 2015, with the average being 7% of annual salary. This increases to 8% of annual salary for qualified members, with 70% reporting a bonus in 2015.
Perhaps unsurprisingly, both members and students in the UK are positive about the future trend of their salary with 88% of members and 83% of students expecting a salary increase over the next 12 months. This is in line with the global average, with 90% of members and students expecting a pay increase over the next 12 months. The average expected pay increase was 5%.
Andrew Harding, managing director of CIMA, said: “In contrast to the ongoing trend of weak wage growth nationally, the earning potential of our members has remained high, driven by the relevance and value of their skills to business. As we face ongoing economic uncertainty, we continue to see strong demand for management accounting skills as business seeks better support in decision-making.
“Businesses know the benefit of strong management accounting skills in driving value and managing risk and so management accountants are increasingly sought after – and receiving increased remuneration as a result.”
The average pay package increases by around 25% once students have become fully qualified chartered accountants. A newly qualified CIMA member (less than a year since qualifying) earns an average £44,349 compared to an average of £35,283 for students at strategic level.
Meanwhile, starting salaries for professional occupations including finance and accounting, financial services, information technology and administration will grow by an average of 3% over the next 12 months, according to the Robert Half 2016 Salary Guide.
This is a higher increase than predicted in last year’s guide, which identified a 2.6% rise. It is also slightly higher than the salary rise of 2.8% announced in today’s Labour Market Statistics and well ahead of the current inflation rate of -0.1%.