Non Executive Director Salary UK: Fees, Tax and Take-Home Pay by Sector and Seniority

Understanding Non Executive Director Salary in the UK

When people search for a "non executive director salary", they often expect a straightforward figure like those for employed roles. In reality, non-executive directors (NEDs) are not paid a salary at all. They receive a fixed annual fee — a retainer — for holding an office, not for performing an executive job. This distinction matters for tax, take-home pay and how the role is structured.

Unlike employees, NEDs do not typically receive bonuses, pension contributions or share options. The fee is set by the board and is deliberately not linked to performance, to preserve the independence that is the whole point of the role. Time commitments usually range from 15 to 30 days per year, though a crisis or major transaction can demand far more time without any extra pay.

Typical Non Executive Director Fee Ranges by Sector

The fee for a non-executive director varies enormously depending on the size, listing status and sector of the organisation. The most authoritative annual figures come from surveys by Spencer Stuart, Alvarez & Marsal, Willis Towers Watson and others. Here are the indicative ranges from those sources:

• FTSE 100 companies: £70,000 – £95,000 per year (20–30 days commitment)
• FTSE 250 companies: £54,000 – £70,000 per year
• FTSE SmallCap: £45,000 – £60,000 per year
• AIM-listed companies: £40,000 – £60,000 per year
• Investment trusts: £30,000 – £40,000 per year (average around £38,000)
• Private / PE-backed companies: £15,000 – £90,000 per year (average £15,000–£35,000)
• NHS trusts and foundation trusts: £13,000 per year (fixed nationally)
• Charities / not-for-profit: Often unpaid or expenses only

The Spencer Stuart 2025 UK Board Index reported an average NED fee of £82,314 across FTSE 150 companies, with chairs averaging £452,069. These figures show the wide gap between the largest listed companies and the public or voluntary sectors.

Seniority Differences: Chair, Committee Chair and Senior Independent Director

Seniority within the boardroom significantly affects the fee. Chairs typically earn several times the standard NED fee. For example, the FTSE 150 chair average of £452,069 is roughly 5.5 times the average NED fee. Committee chairs — for audit, remuneration or nomination committees — often receive an additional fee, typically £5,000–£15,000 on top of the base retainer. The Senior Independent Director (SID) may also receive a premium.

In the NHS, chair fees are banded from £40,000 to £63,300 depending on trust turnover, while standard NEDs receive the fixed £13,000. For private companies and smaller organisations, the chair premium is usually smaller in absolute terms but still significant relative to the base fee.

Tax and Take-Home Pay for Non-Executive Directors

Although NEDs are not employees, HMRC generally regards a UK non-executive director as an office-holder. This means the organisation must deduct Income Tax and employee National Insurance through PAYE, just as it would for an employee. The company also pays employer NIC on the fee.

This treatment applies even if the NED holds the role through a personal service company. IR35 off-payroll rules were extended to office-holders from 6 April 2013, so HMRC’s position is that genuine NED office holders should not be caught by IR35, but the application has been subject to challenge. NEDs using a PSC are strongly advised to take specialist tax advice.

For a NED with total income below £125,140, the marginal Income Tax rate is 40% (higher rate) in England, Wales and Northern Ireland. Above that threshold, the additional rate of 45% applies. Employee NIC is 2% on earnings above the Upper Earnings Limit (£50,270 in 2026/27).

Take-home pay example: A FTSE 250 NED earning £60,000 per year, with no other income, would pay approximately £12,570 tax-free (Personal Allowance), then 20% on the next £37,700 and 40% on the remaining £9,730. Employee NIC would be about £2,000. Net take-home would be roughly £3,300 per month. This is a simplified illustration; actual deductions depend on tax code, pension contributions and student loan repayments.

Regional Differences: Scottish Income Tax

NEDs resident in Scotland pay Scottish Income Tax on their fee. Scottish rates differ from the rest of the UK: there are five bands, with the top rate of 48% applying to income over £125,140. The starter rate (19%) applies to the first band, and the basic rate (20%) to a wider band. This means a Scottish NED with the same gross fee will have a lower take-home pay than a NED in England, all else being equal.

How to Estimate Your Take-Home Pay

Because NED fees are taxed through PAYE, you can use a standard take-home pay calculator to estimate net income. The After Tax Salary take-home calculator allows you to enter the gross annual fee and see the effect of Income Tax, National Insurance, pension contributions and student loan deductions. Remember that the calculator assumes a single job with the standard Personal Allowance; if you have multiple sources of income, your tax code may be adjusted.

For more context on how different salary levels compare, see our salary articles covering median pay, the National Living Wage and public sector scales.

Key Caveats

• No single figure: There is no standard non-executive director salary. Fees vary by sector, company size, role and individual negotiation.
• Unpaid roles: Many charity trustee positions are unpaid, with only reasonable expenses reimbursed. First-time NEDs often start in such roles to gain experience.
• Expenses: Properly incurred expenses claimed in line with HMRC guidance are not taxable. Keep detailed records.
• Tax advice: The interaction of IR35, personal service companies and multiple directorships is complex. Always seek professional tax advice for your specific situation.

Conclusion

The "non executive director salary" is better understood as a fee for office, not a wage for work. Ranges span from zero for charity trustees to over £80,000 for FTSE 150 roles, with tax deducted at source through PAYE. Seniority, committee responsibilities and sector all drive the fee. Scottish NEDs face different Income Tax bands, reducing take-home pay compared to the rest of the UK. Use a reliable take-home calculator to estimate net income, and always consult a tax adviser for your personal circumstances.