Psychologist Salaries: What You Need to Know
The Truth About Psychologist Salaries
Search online for the worst-paying master’s degrees, and mental health clinicians comprise 4 out of the 10 listed. Then, look up the worst-paying PhDs… and you’ll find psychologists are on the list. We want to discuss psychologist salaries and look into what we as a community can do to shift this story and affect change not only in the lives of the people we see but in our own lives as mental health professionals.
Importance of Discussing Psychologist Salaries
The work of mental health is one of the most impactful kinds of work in our society. We foster healing and change in our communities. It’s important we talk about getting paid for this kind of work since, time and time again, we’re undervalued and underpaid.
When we first started coaching private practice owners in 2010, no one liked to talk about pay. In fact, many were admonished, fearing they would create an antitrust issue as set forth by the Federal Trade Commission.
But if we want to change our salary outcomes, healing must occur. We need to bring into light what got us here so we can change course and head to where we want to be: getting paid a sustainable salary for doing the impactful, often life-changing work we do.
The Role of the Psychologist
Psychologists are trained to provide counseling services, much like a master’s-level counselor or therapist. In addition to counseling services, they have training in research and testing.
There are many kinds of practicing psychologists, which include clinical psychologists, counseling psychologists, school psychologists, industrial-organizational psychologists, and forensic psychologists. Psychologists have many areas they can work in, affording them lots of opportunities to move in their career and have variability in how they serve.
Factors That Affect a Psychologist’s Salary
Because psychologists can have a lot of variability in their work setting, there can be a lot of variability in the average psychologist salary. Some of the factors that influence the average psychologist salary include experience, education level, specialization, work setting, and geographic location.
Because we’re primarily acquainted with psychologists in private practice, we want to also address how the pay is variable in a private practice setting. The fee a psychologist charges in private practice varies based on those same factors above in addition to the type of services they’re providing. Testing services are often at a higher rate than 1:1 counseling services.
If a psychologist chooses to be paneled on an insurance company, they likely will get a higher reimbursement rate than that of their fellow providers with a master’s degree, but it can vary based on geographic location and demand for services.
The Average Psychologist’s Salary
It's important to note salary data can change over time, and there are always people who are an exception to the generalized statistics. These figures show average salaries and individual earnings may differ based on factors mentioned earlier.
In the United States, here’s some information about the average psychologist’s salary:
According to the U.S. Bureau of Labor Statistics (BLS), as of May 2020, the median annual wage for psychologists was $82,180.
The lowest 10 percent earned less than $45,380, while the highest 10 percent earned more than $137,590.
Clinical, counseling, and school psychologists had a median annual wage of $80,370, while industrial-organizational psychologists had a median annual wage of $96,270.
In other countries:
Psychologist salaries can vary significantly based on the country's economic conditions, healthcare system, and demand for mental health services.
For example, in the United Kingdom, the average salary for a psychologist is around £37,000 to £47,000 per year.
In Australia, the average salary for a psychologist ranges from AU$60,000 to AU$110,000 per year.
What do these numbers mean for you if you’re a psychologist? You can see why our field is suffering with low wages. But it means it’s an opportunity to affect change in our field. You can start by advocating for better wages if you choose to be employed. Or you can choose to set your own salary through private practice.
The Psychologist's Salary in Private Practice
How much does a psychologist make in private practice? When looking at salary, most data considers what psychologists make as employees. What we love about private practice is that you can break the ceiling and create limitless potential in your earning power instead of being beholden to a payscale set forth by a large institution.
In our How To Set Fees training, we cover how a psychologist can set their fee in private practice. Having a PhD or PsyD is not the reason for your private practice fee. A psychologist’s fee in a private practice setting is based on the income they need to sustain a healthy lifestyle and all aspects of their well-being — including having the time to rest and spend with loved ones — while being a present clinician who gets great outcomes with their clients.
Improving the Salaries of Psychologists
The good news about the data: You can have an impact on improving the numbers. If you’re employed, you can advocate for a higher salary. And if you’re in private practice, you can charge a fee that allows you to do good work without compromising on your physical or mental health. We need to charge what’s truly needed to do this work and live our lives without burnout.
If you’re in private practice and paneled by insurance companies, psychologists need to advocate for better pay through their insurance commissioner who works with insurance companies in your state to ensure there’s sufficient coverage for their communities. You can support those who are lobbying for improved funding for mental health care.
If you’re a psychologist who’s a supervisor and leader for other clinicians in your private practice, you can impact the salary statistics by paying a living wage to your employees.
Speak up for what’s truly needed for you to do this work well. As a psychologist, you want to fully acknowledge and own that your work matters. You can’t put a price on the impact you make as a psychologist, but you can put a price on the cost of living, paying off your student loans, and creating a reality where you can be present for all parts of your life.
Final Thoughts on Psychologist Salaries
No matter what the data shows about what a psychologist makes in their career, as a psychologist you have the power to shift the data in your favor, and private practice is one of the best opportunities to do this. We believe the work of psychologists is essential and has a huge impact on change in society.
To learn more about how to build and sustain a thriving solo or group private practice, check out our Business School for Therapists where psychologists learn how to create an income and a life they love — without having to choose one over the other.