Electricians work under a wide range of employment structures — from full-time company roles and union jobs to independent contracting and self-employment. Each setting comes with its own advantages in pay, benefits, and flexibility.
This article breaks down how compensation differs depending on where and how you work, so you can decide which path fits your goals in 2025.
Average Electrician Pay by Work Setting (2025)
Based on national averages across multiple U.S. markets:
| Work Setting | Average Hourly | Average Annual | Typical Benefits |
|---|---|---|---|
| Union Electrician | $39/hr | $81,000 | Health, pension, training |
| Company-Employed Electrician | $31/hr | $65,000 | Health insurance, PTO, stability |
| Self-Employed Electrician / Contractor | $45/hr* | $90,000* | Variable (self-funded) |
*Self-employed earnings are gross before expenses such as tools, insurance, and taxes.
Union Electricians: Strong Wages and Benefits
Union electricians typically enjoy some of the highest base wages and the strongest protections. Collective bargaining agreements cover not just hourly rates but also overtime, pension plans, and training programs.
Typical pay range: $75,000–$90,000 per year
Advantages: predictable raises, full benefits, and paid training.
Downsides: limited flexibility and longer wait times for job placements.
Top union states include New York, Illinois, and California, where unions maintain high density in commercial and industrial work.
Company-Employed Electricians: Reliable Income and Structure
Working for an electrical contractor or construction firm remains the most common path. Wages vary by company size, project type, and region, but employees often benefit from steady hours and insurance coverage.
Typical pay range: $55,000–$70,000 per year
Advantages: predictable paychecks, health insurance, paid time off.
Downsides: slower wage growth and limited autonomy.
These roles are dominant in residential and commercial sectors across Texas, Florida, and the Midwest.
Self-Employed Electricians: High Earning Potential, Higher Risk
Independent contractors can command top hourly rates, especially for urgent or specialized work. However, they shoulder their own costs — from liability insurance and tools to marketing and taxes.
Typical pay range: $70,000–$120,000+ per year (gross)
Advantages: control over schedule and pricing.
Downsides: inconsistent workload and administrative overhead.
Successful self-employed electricians often focus on niche work — EV charger installations, industrial maintenance, or emergency services — where clients pay premium rates for availability and expertise.
Union vs. Company vs. Self-Employed: Which Pays Best?
In pure hourly rates, self-employed electricians generally earn the most. However, once expenses and taxes are accounted for, total take-home pay often aligns more closely with union wages.
| Setting | Earning Potential | Job Stability | Flexibility |
|---|---|---|---|
| Union | High | Very Stable | Moderate |
| Company-Employed | Moderate | High | Low |
| Self-Employed | Very High (variable) | Low | Very High |
Your optimal choice depends on your goals — consistent income and benefits, or independence with higher potential but more risk.
Future Outlook by Work Setting
- Union electricians – steady demand, particularly in infrastructure and industrial sectors supported by federal investment.
- Company employees – strong growth in residential and solar markets due to ongoing construction activity.
- Self-employed electricians – fastest-growing group in small business registrations as tradespeople seek autonomy.
How to Move Into a Higher-Pay Setting
- Obtain a state license to qualify for contracting work.
- Join an apprenticeship or union program to access larger projects.
- Earn certifications in EV, solar, or automation to increase billable rates.
- Network with contractors and developers for recurring projects.
See related guides: Electrician Pay by Category and Electrician Salary by State.
Summary
Electrician pay depends heavily on work setting. Union and self-employed electricians lead in compensation, while company roles offer stability and benefits. The best path combines both earning potential and lifestyle fit.