BJJ Instructor Compensation Models: UK Pay Structures & Rates

Per-class payment is the dominant model for part-time BJJ instructors in the UK. Rates vary significantly by belt rank, experience, and location.

Budget Range (£20-£30/class): Typically for assistant instructors, purple belts with minimal teaching experience, or small gyms with limited revenue. This is below market in most areas and will struggle to retain instructors long-term.

Standard Range (£30-£40/class): Purple belts with experience £28-£35/class, brown belts £32-£38/class, black belts £35-£42/class. This represents fair market rate for most UK locations outside London.

Premium Range (£40-£60/class): Black belts with extensive experience, head instructors, or specialist skills (elite competition coaching, established reputation). London and South East England rates. High-end gyms with premium pricing can support these rates.

Factors affecting rates include belt rank and lineage (recognisable lineage commands higher rates), teaching experience and quality (demonstrated track record of good teaching, positive member feedback), location (London rates 30-50% above national average, South East 10-20% above, other regions at or below average), class type (kids classes sometimes paid £5-£10 more due to higher demands and safeguarding requirements), class size (some gyms pay bonuses for classes exceeding target attendance), and market competition for instructors (if multiple gyms in area compete for same instructor pool, rates rise).

Location significantly impacts appropriate pay rates. London and South East costs of living are substantially higher, requiring higher compensation to attract talent.

London: 30-50% higher than national average. Black belt instructors commanding £45-£60/class, purple belts £35-£45/class. Full-time salaries £28,000-£42,000 for instructors, £35,000-£50,000 for head instructors.

South East (excluding London): 10-20% above national average. Brighton, Cambridge, Oxford areas. Black belts £38-£45/class, full-time £24,000-£38,000.

Midlands and North: At or slightly below national average. Manchester, Birmingham, Leeds, Liverpool. Black belts £32-£40/class, full-time £20,000-£32,000. Some exceptional gyms pay London-level rates.

Scotland and Wales: Similar to Midlands. Edinburgh and Cardiff closer to South East rates. Black belts £30-£40/class, full-time £20,000-£32,000.

Always research your specific local market. Asking other gym owners (discretely), checking job postings, and speaking with instructors provides accurate local data. What works in Birmingham may not work in London.

Salaried positions are less common but increasing as gyms professionalise. Typical UK ranges for 2026:

Assistant Instructor: £18,000-£25,000 annually. Typically teaching 10-15 hours weekly plus administrative duties. Purple or brown belt. Often part-time contracts (20-30 hours weekly rather than full 40-hour week).

BJJ Instructor: £22,000-£32,000 annually. Teaching 15-20 hours weekly. Brown or black belt. May include some administrative or management responsibilities.

Head Instructor: £28,000-£38,000 annually. Senior teaching role plus management responsibilities (scheduling, curriculum oversight, instructor training). Black belt preferred. London and large gyms at higher end.

Head Instructor/General Manager: £32,000-£42,000 annually. Combined teaching and operational management. Significant responsibility for day-to-day gym operations. Rare outside large or multi-location gyms.

Regional variations apply: London adds 30-40% to these figures, South East adds 10-20%, whilst Midlands/North/Scotland/Wales typically at or below stated ranges.

Remember: total employment cost exceeds salary. Employer National Insurance (15% on earnings above £5,000), pension contributions (minimum 3% if over £10,000 earnings), holiday pay (5.6 weeks included in salary but represents 12.07% of working weeks), and administrative costs (payroll processing, HR systems) add approximately 20-25% to gross salary. A £30,000 salary costs the gym approximately £36,000-£37,500 annually.

Multiple variables determine appropriate compensation:

Belt Rank: Clear pay progression from purple to brown to black belt maintains fairness and provides advancement incentive. Typical progression: purple belt baseline, brown belt +15-20%, black belt +30-50%. Some gyms pay based purely on rank, others weight experience more heavily.

Teaching Experience and Quality: A purple belt with 5 years teaching experience and excellent member feedback may merit more than a black belt with 6 months teaching and mediocre feedback. Teaching ability matters more than technical rank for instructor compensation.

Specialisations: Certain skills command premiums: kids instruction (requires enhanced DBS, safeguarding training, patience; often +£5-£10/class), competition coaching (proven track record of successful competitors), no-gi expertise (if your gym runs substantial no-gi programme), women's self-defence instruction (specialist skill with growing demand), and injury rehabilitation or adaptive BJJ (rare expertise serving important populations).

Class Size and Retention: Some gyms link pay to performance: base rate + bonus for classes exceeding target attendance, higher rate for instructors with strong member retention, acquisition bonuses for instructors who bring new members, and profit-share for instructors driving significant revenue growth.

Gym Location and Pricing Tier: Budget gyms charging £60-£80/month can't pay what premium gyms charging £120-£150/month can. Your pricing model constraints instructor pay. If you charge budget prices, communicate this clearly when hiring - you can't pay premium rates on budget revenue.

Market Competition: If your city has 8 BJJ gyms competing for 3 qualified black belt instructors, rates will rise. Limited instructor supply in your area means paying competitively is critical. Alternatively, if instructors are plentiful, market rates may be lower.

Instructor is paid a fixed amount per class taught, typically as self-employed contractor. Key characteristics: instructor invoices gym monthly for classes taught (e.g., '8 classes in January @ £35/class = £280'), no holiday pay, sick pay, or employee benefits (contractor bears these costs), payment typically 7-30 days after invoice (net-30 common), instructor responsible for own tax and National Insurance (files self-assessment tax return), and flexible arrangements (can decline classes, find substitutes if permitted by contract).

This model works best when instructor genuinely operates as self-employed contractor, not disguised employment. See our contractor vs employee guide for IR35 compliance.

Fair market rates vary by experience but belt rank provides useful baseline:

Purple Belt: £25-£35/class depending on teaching experience and location. New instructors at lower end (£25-£28), experienced purple belts at higher end (£32-£35). London: £35-£45/class.

Brown Belt: £30-£40/class. Less experienced browns £30-£33, seasoned browns £36-£40. London: £40-£48/class.

Black Belt: £35-£50/class. Newly promoted blacks £35-£38, established blacks with teaching track record £42-£50. London: £45-£65/class for exceptional instructors.

Specialist Classes: Kids classes, competition team coaching, or women's self-defence often pay £5-£10 premium due to specialised requirements. Kids instruction requires enhanced DBS (£68), safeguarding training, and different pedagogical approach justifying premium.

• Pay only for classes taught: If instructor is sick or class cancelled, you don't pay. Variable costs that flex with revenue.
• No holiday or sick pay obligations: Contractor arrangements don't include statutory leave entitlements, reducing total cost approximately 12-15%.
• Easy to scale up or down: Growing? Add more classes. Revenue drop? Reduce classes with minimal notice period (typically 1 month).
• Lower administrative burden: No PAYE, no National Insurance, no pension auto-enrolment, no holiday calculations. Contractor handles own taxes.
• Flexibility to trial instructors: Test new instructors for 3-6 months without long-term employment commitment. If not working out, part ways with minimal notice.
• Multiple instructor management: Easy to have 3-4 contractors teaching different classes without complex scheduling and benefits administration.

• Less instructor loyalty: Contractors more likely to leave for better rates elsewhere. £5-£10 difference per class significantly impacts their income.
• Instructors work for multiple gyms: Contractor status allows teaching at competing gyms (unless contract restricts this, which may undermine contractor classification).
• Higher turnover risk: Without benefits, holiday pay, or job security, instructors more readily move to employee positions offering stability.
• IR35 compliance risk: If working arrangements don't reflect genuine self-employment (you control curriculum, set exact times, prohibit substitution), HMRC may reclassify as disguised employment with penalties £45,000+ per worker plus back-payments.
• Last-minute cancellations more common: Contractors without sick pay more likely to cancel when unwell or for other commitments. Employee arrangements provide more predictability.
• Less control over work: Genuine contractors have autonomy over how they deliver service. Micromanaging teaching style or requiring specific curriculum may trigger IR35.

Per-class contractor model works well for:

• Part-time instructors teaching 2-6 classes weekly
• Early-stage gyms under 100 members with variable revenue
• Specialised class instructors (kids coach teaching 3 classes Saturday morning, competition coach teaching 2 evenings)
• Trial periods with new instructors before committing to employment
• Gyms with multiple instructors sharing teaching load
• Instructors who want flexibility and work for multiple gyms

Determining fair rates requires balancing multiple factors:

Research local market: Ask other gym owners discreetly, check job postings in your area, speak with instructors (without poaching), and monitor what competitors advertise.

Revenue-based calculation: Aim for instructor pay representing 30-40% of class revenue. If class generates £200 revenue (20 students × £10 allocated per class from monthly memberships), paying £60-£80 is sustainable. If class only generates £80 revenue, paying £40 creates margin pressure.

Factor instructor experience and value: Exceptional instructors who retain members, attract new students, and elevate gym reputation merit premium pay. Adequate instructors who maintain status quo merit market rate. Poor instructors who drive away members aren't worth any rate.

Build in annual reviews: Commit to reviewing rates annually with cost-of-living adjustments (2-4% typical) plus performance increases (5-10% for exceptional contribution). Loyalty and performance should be rewarded.

Consider non-financial compensation: If you can't match highest market rates, offset with free seminar attendance, competition support, professional development budget, flexible scheduling, or clear progression path to head instructor/partnership.

Written service agreement should include:

• Clear per-class rate (£X per class, specify for different class types if rates vary)
• Payment terms (monthly invoicing, payment within 30 days, what expenses are covered)
• Schedule and expectations (which classes, when, approximately how many per month)
• Contractor status confirmation (explicitly state self-employed, responsible for own tax/NI)
• Cancellation policy (how much notice required, who finds substitute, any penalty for last-minute cancellations)
• Notice period for ending arrangement (typically 1 month for either party)
• IP and confidentiality (curriculum ownership, member data protection)
• Non-compete terms if applicable (be careful - extensive restrictions may indicate employment relationship)

Ensure contract reflects genuine contractor relationship. If contract looks like employment (fixed hours, no flexibility, complete control), HMRC may challenge contractor status under IR35 rules.

Instructor receives fixed monthly or annual salary as employee. Key characteristics: employee status with PAYE tax, National Insurance, pension auto-enrolment; holiday pay entitlement (5.6 weeks or 28 days statutory minimum); sick pay entitlements (statutory or enhanced); set number of classes per week/month with fixed schedule; additional duties beyond teaching often included (admin, marketing, member onboarding); and employment protections (disciplinary procedures, unfair dismissal protection after 2 years).

Total employment cost significantly exceeds gross salary due to employer National Insurance (15% on earnings above £5,000), pension contributions (minimum 3% on qualifying earnings), holiday coverage (salary includes holiday but you still need class coverage), administrative costs (payroll processing, HR systems), and potential sick pay coverage.

Annual salary ranges for employee instructors:

Part-Time (2-3 classes/week): £8,000-£15,000/year for 8-12 hours weekly. Typically purple or brown belt teaching fundamentals or kids classes. Often students, part-time workers, or semi-retired individuals seeking supplementary income.

Half-Time (5-10 hours teaching/week): £12,000-£20,000/year for 15-25 total hours including teaching and admin. Brown belt or black belt. May include reception coverage, admin tasks, social media. Common structure for instructor with another primary job.

Full-Time (20-30 hours/week): £20,000-£35,000/year teaching 15-20 hours weekly plus substantial administrative or management duties. Black belt preferred. Includes curriculum development, instructor training, member retention, marketing support. London higher end (£28,000-£35,000), other regions lower end (£20,000-£28,000).

Head Instructor/Manager: £28,000-£42,000/year combining senior teaching with operational management. Responsible for instructor team, curriculum oversight, member experience, and significant business operations. Typically black belt with 5+ years experience. London: £35,000-£50,000.

Regional adjustments: London +30-40%, South East +10-20%, Midlands/North/Scotland/Wales at or below stated ranges depending on local cost of living and gym revenue.

Several methods for determining fair salary:

Per-Class Equivalency Method: Number of classes weekly × market per-class rate × 52 weeks, then add 20% for holiday coverage and benefits. Example: 10 classes weekly × £35/class × 52 weeks = £18,200, plus 20% = £21,840 annual salary.

Hourly Rate Method: Total hours weekly (teaching + admin) × market hourly rate × 52 weeks. Martial arts instructor hourly rates in UK average £19.33-£20.62/hour according to salary surveys. 25 hours weekly × £20/hour × 52 weeks = £26,000.

Revenue Percentage Method: Determine how much revenue instructor generates or supports, allocate 25-35% to compensation. If instructor's classes generate £60,000 annual revenue, £15,000-£21,000 salary represents appropriate proportion.

Market Rate Method: Research what other gyms pay for similar roles in your area. Check job postings, ask in gym owner networks, speak with instructors.

Experience and Belt Premium: Apply multipliers: entry-level purple belt (1.0×), experienced purple/brown (1.1-1.2×), black belt (1.3-1.5×), head instructor (1.5-1.8×). If baseline is £20,000, black belt head instructor merits £26,000-£30,000.

Regional Cost-of-Living Adjustment: London +35%, South East +15%, others baseline. £25,000 outside London becomes £33,750 in London for equivalent purchasing power.

• Greater commitment and loyalty: Employee status with benefits creates psychological contract. Instructors less likely to leave for small pay differences.
• More control over schedule and duties: As employer, you set schedule, assign responsibilities, manage performance more directly than with contractors.
• Consistency and reliability: Employees required to show up regardless of other opportunities. Reduces last-minute cancellations and schedule uncertainty.
• Non-teaching duties: Can assign admin tasks, marketing work, member onboarding, facility maintenance - work that expands their contribution beyond class time.
• Professional image: Salaried staff positions signal established, professional business. Helps with member confidence and gym reputation.
• Team building: Employees more invested in gym success, more willing to collaborate with other staff, contribute to culture development.

• Fixed cost in variable revenue: Must pay salary even during slow summer months, Christmas period, or economic downturns when membership drops.
• Holiday and sick pay obligations: Employees entitled to 5.6 weeks holiday (included in salary but you still need cover) and sick pay. Can add 10-15% to effective cost.
• Employer National Insurance: 15% on earnings above £5,000 (from April 2025). £25,000 salary incurs £3,000 employer NI. £30,000 salary incurs £3,750 employer NI.
• Pension auto-enrolment: Minimum 3% employer contribution if earning over £10,000. £25,000 salary adds £750 pension cost. Can opt out but most don't.
• More complex termination: Can't simply end arrangement with 1 month notice. Must follow ACAS disciplinary procedures, provide warnings, fair dismissal process. Employment tribunals if done improperly.
• Higher administrative burden: PAYE submissions, National Insurance, pension enrolment, holiday tracking, payroll processing. Time-consuming or requires payroll service (£10-£30/month).

Salary employee model works well for:

• Head instructors or senior staff with significant responsibilities
• Gyms with 150+ members providing stable, predictable revenue
• Full-time instructors teaching 10+ classes weekly plus admin duties
• Instructors with management responsibilities (team oversight, curriculum, operations)
• Long-term key personnel where loyalty and commitment are critical
• Positions requiring non-teaching work that contractors won't do

Beyond salary, consider offering:

Free Gym Membership and Training: Obvious but valuable. Access to all classes, open mats, facilities. Typical value £100-£150/month or £1,200-£1,800/year.

Professional Development Budget: £500-£1,500/year for seminars, coaching courses, competition support. Investment in instructor development improves their value to gym and demonstrates commitment to their growth.

Seminar Attendance Allowance: Paid time off to attend major seminars or training camps. Typical: 2-4 days/year. Brings back knowledge and techniques benefiting your members.

Performance Bonuses: Annual or quarterly bonuses for exceptional performance, member retention, new member acquisition. £500-£2,000 annual bonus typical.

Pension Contributions Above Minimum: Legal minimum is 3% employer contribution. Offering 5-8% is competitive and aids instructor retirement planning.

Private Health Insurance: Rare in BJJ gyms except premium operations. Costs £50-£150/month per employee. Significant benefit for instructors coming from corporate backgrounds expecting benefits.

Profit-Share or Equity: For key long-term instructors, consider annual profit-share or equity stake. Aligns their interests with gym success. See profit-share section below.

Instructor receives percentage of gym revenue or profit, either replacing or supplementing base compensation. Common structures:

Revenue Share: Percentage of specific class or programme revenue. Example: kids instructor receives 20% of kids programme monthly revenue. Kids programme generates £3,000/month, instructor receives £600.

Profit Share: Percentage of net profit (revenue minus expenses). More common for partnerships. Example: head instructor receives 15% of monthly profit. Gym profits £5,000/month, instructor receives £750.

Member Acquisition Bonus: Fixed payment for new members instructor brings in or signs up during trial classes. £50-£100 per new member typical.

Class Size Bonus: Additional payment when classes exceed target attendance. Example: £30 base per class, plus £2 per student above 15. Class with 20 students pays £40.

Tiered Percentage: Percentage increases as revenue grows. Example: 10% on first £30,000 monthly revenue, 15% on next £20,000, 20% above £50,000. Rewards growth.

• Aligned incentives: Instructor profits when gym profits. They're motivated to retain members, attract new ones, deliver exceptional experience.
• Variable costs: Profit-share scales with revenue. During slow months, costs are lower. During growth, costs increase but revenue increases more.
• Motivates membership growth: Instructors become active partners in marketing, retention, member experience - not just teaching.
• Attracts entrepreneurial instructors: Self-motivated instructors prefer upside potential over fixed salary.
• Retention tool: Instructors with profit-share rarely leave. They're building income stream linked to gym success.
• Partnership pathway: Profit-share arrangements can evolve into formal partnerships or equity stakes, creating succession plan.

• Complex accounting: Requires transparent, accurate financial reporting. Instructor sees revenue and expenses. Must be comfortable sharing numbers.
• Reduces owner profit: Sharing 20-30% of profit significantly impacts take-home. Only worthwhile if instructor's contribution justifies it.
• Potential disputes: Arguments over expense allocation, revenue attribution, calculation methodologies. Written agreement essential but disputes still arise.
• Difficult to change: Once established, reducing profit-share feels like pay cut. Instructor may leave rather than accept reduction.
• Multiple instructor complications: Profit-sharing with 2-3 instructors requires careful delineation. Do they each get 15%? How do you attribute revenue to specific instructors?
• May prioritise short-term: Instructors motivated by monthly profit may push for decisions maximising short-term revenue over long-term gym health.

Profit-share arrangements work well for:

• Long-term key instructors (3+ years tenure, proven commitment)
• Partnership track arrangements (testing partnership before formal equity)
• Instructors taking ownership of specific programmes (kids coach who builds and runs entire kids programme)
• Head instructors with significant management responsibilities
• Established gyms with stable financials where owner is comfortable sharing numbers
• Situations where instructor brings significant value beyond teaching (member acquisition, retention, reputation)

Successful profit-sharing requires clarity:

Clear Definition of Revenue/Profit: Gross revenue (all money in)? Net revenue (after refunds and chargebacks)? Profit after expenses? Which expenses? Define precisely in writing.

Transparent Accounting: Instructor must see numbers to verify calculations. Use accounting software, share monthly P&L, maintain trust through transparency.

Written Agreement with Details: Percentage, calculation methodology, payment timing (monthly, quarterly), minimum guarantees if any, expense allocation rules, how it changes if revenue drops.

Annual Review and Adjustment: Revisit arrangement annually. As gym grows or instructor role changes, adjust percentages accordingly.

Exit Terms: What happens if instructor leaves or relationship ends? Is profit-share immediately cut off? Tapered over transition period? Define upfront.

Dispute Resolution: Mechanism for resolving disagreements over calculations or terms. Mediation clause, arbitration, or specified third-party accountant review.

Example agreement structure: 'Instructor receives 20% of monthly net profit from adult programmes. Net profit calculated as adult programme revenue (membership fees plus trial fees plus private lesson fees) minus direct expenses (instructor pay for other instructors teaching adult classes, mat cleaning supplies allocated to adult mats, promotional costs for adult classes). Payment made 10th of following month after books are closed. Arrangement reviewed annually each January. Either party may terminate with 3 months written notice. Upon termination, profit-share paid through final month worked.'

Structure: Fixed monthly salary covering set number of classes, plus additional per-class payment for extra classes. Example: £15,000 annual salary (£1,250/month) for teaching 6 classes weekly (approximately 25 classes/month), plus £20 for each additional class taught beyond contracted 6 weekly.

Advantages: Provides income security for instructor whilst rewarding extra effort, allows gym to scale class offerings without committing to higher fixed salary, incentivises instructor to cover sick leave or extra sessions, and flexible for seasonal variations (teach more during busy autumn, fewer during quiet summer).

Best for: Part-time salaried instructors, gyms with variable class demand throughout year, and situations where you want base commitment but need coverage flexibility.

Example: Brown belt instructor on £18,000 salary teaching 8 contracted classes weekly. During competition season, they teach 2 additional competition team sessions weekly at £25 each. Annual income: £18,000 + (2 classes × £25 × 48 weeks) = £20,400.

Structure: Monthly retainer payment guaranteeing income, plus per-class rate for actual classes taught. Example: £500/month retainer plus £30 per class taught.

Advantages: Retainer provides minimum income security, per-class rate means cost scales with actual teaching, works well for instructors with variable availability, and simpler than full employment (can structure as contractor arrangement).

Best for: Instructors with irregular schedules (shift workers, students, parents), seasonal instructors (busier during school term, less during holidays), and gyms wanting some commitment without full employment.

Example: Purple belt instructor with irregular work schedule receives £400 monthly retainer, teaches average 8 classes/month at £30 each. Monthly income: £400 + (8 × £30) = £640 or £7,680 annually. During busy months teaches 12 classes (£760), quiet months only 4 classes (£520).

Structure: Base salary plus bonus for each new member instructor signs up. Example: £22,000 salary plus £75 per new member acquired through their trial classes or referrals.

Advantages: Base salary provides security, bonus motivates instructor to excel during trial classes and focus on member experience, aligns instructor incentives with gym growth, and relatively easy to track and calculate.

Best for: Gyms with significant trial class programme, instructors who teach many beginner classes, and growth phase where acquisition is priority.

Example: Black belt instructor on £26,000 salary teaching fundamentals and trial classes. Averages 2 new member sign-ups/month through excellent trial class experience. Annual income: £26,000 + (24 members × £75) = £27,800. Strong year with 3 sign-ups/month: £28,700.

Structure: Modest base salary plus percentage of gym profit. Example: £20,000 salary plus 10% of quarterly profit.

Advantages: Salary provides baseline security, profit share provides upside potential and aligns incentives, instructor invested in overall gym success not just their classes, and can result in significant total compensation during good years.

Best for: Head instructors with management responsibilities, senior instructors on partnership track, established gyms with consistent profitability, and situations where you want instructor thinking like owner.

Example: Head instructor on £24,000 salary plus 12% of quarterly profit. Gym averages £4,000/month profit (£12,000 quarterly). Quarterly profit-share: £1,440 (£5,760 annually). Total compensation: £29,760. During exceptional quarter with £6,000/month profit (£18,000 quarterly), profit-share is £2,160.

Structure: Per-class rate increases based on tenure. Example: Year 1 £30/class, Year 2 £35/class, Year 3 £40/class, Year 4+ £42/class.

Advantages: Rewards loyalty and encourages retention, predictable cost progression for gym owner, incentivises instructors to stay rather than job-hop for small increases, and demonstrates clear career progression.

Best for: Part-time contractor instructors, gyms wanting to build stable instructor team, competitive markets where retention is challenging, and when you value consistency and familiarity over rotating new instructors.

Example: Purple belt starts at £28/class teaching 3 classes weekly. After 12 months, rate increases to £32/class. After 24 months, £35/class. After 36 months (now brown belt), £38/class. Year 1 income: £4,368. Year 2: £4,992. Year 3: £5,460. Year 4: £5,928. Total income growth of 36% over 4 years rewards loyalty whilst remaining affordable for gym.

• Free seminar attendance: Cover instructor attendance at 1-2 major seminars annually. Typical cost £80-£150 per seminar. Improves their skills which benefits your members.
• Paid external instructor courses: UKBJJA Level 1 or Level 2 coaching awards (£200-£400), first aid certification (£60-£100 for 1-day course), safeguarding training (£30-£60). Investment in qualifications makes them more valuable.
• Competition entry fees covered: Support their competition participation. Entry fees £40-£80 per competition. Shows you value their continued development as practitioners.
• Belt progression support: Actively support their progression through ranks. Bring in their coach for gradings, acknowledge and celebrate promotions publicly.
• Access to online learning resources: Subscriptions to BJJ Fanatics, Grappler's Guide, or other platforms (£15-£30/month). Continuing education improves teaching quality.

Value: £500-£2,000 annually. For instructor earning £20,000, this represents 2.5-10% additional compensation.

• Flexible scheduling: Accommodate their needs when possible. Allow schedule swaps, occasional time off for personal commitments, prioritising classes they prefer.
• Input on curriculum: Involve them in curriculum development. Use their ideas, acknowledge contributions, give ownership over specific programme areas.
• Ability to run specialised programmes: Let them develop and lead new initiatives (women's programme, competition team, self-defence workshops). Entrepreneurial instructors value this autonomy.
• Teaching style freedom: Provide structure but allow personality and style to shine. Micromanagement drives away talented people.

Value: Difficult to quantify but highly valued by instructors. Flexibility and autonomy often outweigh small salary differences when instructors compare opportunities.

• Clear path to head instructor: Assistant instructor → instructor → senior instructor → head instructor. Make progression criteria visible and achievable.
• Partnership opportunities: For exceptional long-term instructors, offer path to equity partnership. Even if 3-5 years away, knowing possibility exists creates commitment.
• Equity stake in business: Rare but powerful. Offering 5-15% equity to key long-term instructor transforms relationship. They become owner, not employee.
• Succession planning involvement: For head instructors, discuss long-term vision and their role in eventual transition if you sell or retire.

Value: Potentially significant. Equity in successful gym worth £50,000-£200,000+ over time. Path to ownership motivates differently than cash alone.

• Title recognition: 'Head Instructor', 'Lead Kids Coach', 'Competition Team Director'. Titles cost nothing but matter for professional identity.
• Featured on website and marketing: Instructor profiles on website, featured in social media, mentioned in email newsletters. Public recognition shows you value them.
• Leadership opportunities: Involve in gym decisions, seek their input on policies, invite to planning meetings. Feeling heard and valued creates loyalty.
• Involvement in gym decisions: Ask opinions on new class times, curriculum changes, facility improvements, pricing adjustments. Inclusion builds commitment.

Value: Minimal monetary cost but significant psychological value. Recognition satisfies intrinsic motivation that money alone can't.

Non-financial compensation can offset 10-20% of cash compensation needs. An instructor might accept £28,000 salary with excellent non-financial benefits rather than £32,000 salary with none.

Particularly valuable to younger or developing instructors who prioritise growth and learning over maximising immediate income. A purple belt might choose £28/class with free seminar attendance, training budget, and clear progression path over £32/class with none of that.

Non-financial compensation builds long-term loyalty more effectively than small pay increases. Instructors remember you investing in their development, supporting their competition goals, and respecting their autonomy long after they forget the difference between £32 and £35 per class.

However, non-financial benefits cannot replace fair market compensation. Don't underpay significantly and expect training budget to compensate. Use non-financial benefits to enhance fair pay package, not replace it.

Before determining what to pay, understand what you can afford. Calculate maximum instructor spend as percentage of revenue.

Target: 25-35% of revenue. If monthly revenue is £10,000, allocate £2,500-£3,500 for instructor costs. If revenue is £20,000/month, £5,000-£7,000 for instructors.

For employees, factor in hidden costs: Gross salary plus employer National Insurance (15% on earnings above £5,000), pension contributions (minimum 3% on qualifying earnings), holiday coverage (12.07% effectively), administrative costs (payroll service £10-£30/month). A £25,000 salary costs approximately £30,000-£31,000 total.

Build in raises and bonuses: If you pay market rate now but never increase, you'll fall behind. Budget for 3-5% annual increases minimum, more for performance.

Scenario planning: What if revenue drops 20%? Can you still afford instructor costs? If not, contractor model provides more flexibility than salaried employees.

Know what competitors pay so you're neither significantly overpaying nor underpaying.

Survey other local gyms: Ask other gym owners what they pay (discretely, not when recruiting their staff). Many gym owners willing to share in non-competitive contexts (different martial art, different geographic area, gym owner forums).

Check online job postings: Indeed, LinkedIn, martial arts job boards, Facebook groups. Even postings that don't list pay provide calibration (if all require black belt, market must support paying black belt rates).

Ask in gym owner networks: UK gym owner Facebook groups, UKBJJA forums, business networking groups. 'What's fair pay for brown belt teaching 4 classes weekly in Manchester?' usually gets helpful responses.

Regional adjustment: London rates are 30-50% higher than Midlands/North. Adjust expectations based on your location's cost of living.

Speak with instructors: Ask instructors what they've been offered elsewhere, what they consider fair market rate. Don't use this to poach but to calibrate.

Select compensation structure matching your gym stage and instructor situation.

Contractor per-class model for: Early stage gyms under 100 members, part-time instructors teaching 2-6 classes weekly, trial periods before committing, and when you need cost flexibility.

Salary employee model for: Established gyms with stable revenue (150+ members), full-time instructors teaching 10+ classes weekly, head instructors with management duties, and when loyalty and commitment are critical.

Hybrid or profit-share for: Key long-term instructors (3+ years), senior instructors on partnership track, situations where you want instructor thinking like owner, and when you have stable financials to share transparently.

Don't necessarily use same model for all instructors. Head instructor on salary whilst part-time kids coach is contractor works fine. Different roles merit different structures.

Avoid disputes with clear written agreements.

Written compensation agreement or contract: Pay rate or salary, when and how payment made, what's included (teaching only? Admin duties?), benefits if applicable, and employment status (employee vs contractor).

Clear payment terms and schedule: Monthly on 10th of following month? Weekly? Bi-weekly? How do they submit time/invoice? What happens if payment date falls on holiday?

Performance expectations tied to pay: What's required to maintain this compensation? Punctuality, preparation, member satisfaction, administrative duties. Link pay to performance.

Review and adjustment process: When will pay be reviewed? Annually? What factors influence increases? Cost of living, performance, belt promotion, tenure. Set expectations upfront.

Use UK-appropriate templates. ACAS provides employment contract guidance. Consider paying solicitor £300-£500 for proper contract review rather than risking expensive disputes later.

Transparent communication about compensation prevents resentment and turnover.

No surprises on payment: Instructor should know exactly when and how much they'll be paid. Inconsistent payment erodes trust rapidly.

Transparent about raises and bonuses: Explain how raises are determined. 'We review pay annually each January based on performance and cost of living adjustments' sets clear expectations.

Regular compensation discussions: Annual formal review minimum. Discuss total compensation including non-financial benefits, performance feedback, future increases. Don't only talk about pay when instructor requests raise.

Address pay questions directly: If instructor asks why another instructor earns more, explain honestly (more experience, different responsibilities, belt rank). Perceived unfairness drives turnover even when actual pay is fair.

Be honest about constraints: If you can't match competitor offer, explain why. 'I can't match £45/class right now because our revenue is £X and instructor costs are already Y% of revenue' is reasonable if true. Instructor might accept less knowing business realities.

Schedule formal compensation reviews annually, typically same time each year (many choose January or April aligning with tax year).

Cost of living adjustment (2-4% typical): UK inflation varies year to year. 2026 inflation projections around 2-3%. Matching inflation maintains real purchasing power. Not increasing means effective pay cut.

Performance-based increase: Beyond inflation, reward exceptional performance. If instructor significantly improved retention, attracted new members, took on additional responsibilities, or went above and beyond, 5-10% increase is appropriate.

Loyalty/tenure rewards: Each year of service merits consideration. 3-5% annual increase for continued commitment common. See progressive rate model above.

Combine elements: 'Your pay increases from £32 to £35 per class - 2% cost of living, 3% for taking on kids programme successfully, 4% for tenure and consistent excellent teaching, total 9.4% increase.'

Sometimes increases can't wait for annual review:

Significant increase in responsibilities: Purple belt assistant promoted to head instructor role mid-year merits immediate adjustment, not waiting 6 months for review.

Market rate changes: If competitor gym opens offering £10/class more, you may need to adjust immediately to prevent defection.

Retention risk (counter-offer situation): If instructor receives outside offer, counter-offers are appropriate if you want to retain them. Match or exceed offer if they're valuable. Let them go if offer is unrealistic for your business.

Belt promotion: When instructor earns next belt, increase pay to reflect. Purple to brown merits 15-20% increase. Brown to black merits 30-40% increase.

Size of increase depends on reason:

• Cost of living: 2-4% matching inflation. Maintains purchasing power without really increasing compensation.
• Performance: 5-10% for exceptional contribution. Significant enough to feel rewarding, affordable for most gyms.
• Promotion: 10-20% for substantial role change like assistant to head instructor. Reflects increased responsibility.
• Retention (counter-offer): Match or beat outside offer if instructor is worth it. If competitor offers £40 vs your £32, matching saves turnover costs but £8/class difference is substantial. Consider whether they merit that rate or if you should let them go.
• Belt promotion: Purple to brown 15-20%, brown to black 30-40%. Belt progression is major milestone justifying significant increase.

Avoid tiny increases. 1-2% feels insulting rather than rewarding. Better to give nothing and explain budget constraints honestly than token increase communicating you don't value them.

How you communicate compensation matters as much as amount.

Annual review meeting: Schedule dedicated time, not rushed conversation after class. Review their contributions, provide positive feedback, discuss areas for development, then address compensation.

Base on performance and contribution: Link increases to specific accomplishments. 'Your kids classes have grown from 15 to 28 students, retention improved to 94%, and parents consistently praise your teaching. That merits increase from £35 to £40 per class.'

Be clear on what's possible: Don't promise increases you can't deliver. If budget doesn't allow raise this year, explain honestly and commit to revisiting in 6 months.

Link pay to gym financial performance: Help instructor understand business realities. 'Our revenue grew 15% this year allowing us to increase your pay 8%. If we continue growing, next year's increase could be larger.'

Discuss total compensation: Remind them of non-financial benefits. 'Your per-class rate increases to £38, plus we're covering your UKBJJA Level 2 coaching course this year (£400), and you'll attend the Miyao seminar in June (£120). Total value increase is approximately £3,000 annually.'