General Contractor Salary vs. Electrician: Which Pays More?

The Electrician’s Salary: A Path of Specialization and Growth

The journey for an electrician is a well-defined progression built on technical skill and continuous learning. It typically starts with electrician school or an apprenticeship, moves to becoming a licensed journeyman electrician, and can culminate in achieving the status of a Master Electrician. This ladder has clear milestones, and with each step, the earning potential increases significantly.

According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for electricians was $61,590 in May 2023. However, this figure represents the broad middle. The real story is in the potential for growth. The top 10% of electricians earn more than $104,180 annually. This demonstrates a strong trajectory for licensed electrician salary growth, especially for those who specialize in high-demand areas like industrial automation, renewable energy, or complex control systems. For a deeper look at what you can earn, our complete electrician salary guide offers more detail.

Furthermore, the conversation changes when you compare a salaried employee to an entrepreneur. The electrician business owner salary can far exceed that of a top-tier employee. As an electrical contractor, you’re not just earning a wage; you’re setting your rates, managing projects, and building a business with its own profit potential. This path brings you closer to the business model of a general contractor, focusing on profit margins and operational efficiency.

Understanding General Contractor Salary and Profit

Unlike a trade specialist who earns a wage or salary, a general contractor’s income is more complex. So, how do general contractors make money? Their earnings are derived from a combination of project management fees, overhead, and profit—often referred to as general contractor overhead and profit. They aren’t just paid for their time; they are paid for their ability to successfully deliver a complete project on time and on budget.

It’s most accurate to look at the construction management salary data from the BLS, which shows a median annual wage of $104,900 as of May 2023. The highest-earning construction managers and GCs can bring in more than $172,040. This higher ceiling reflects the immense responsibility and risk they undertake. A GC’s income is directly tied to the scale and number of projects they can manage.

Profit margins are key. A GC might add a 10-25% markup on the total project cost. This percentage, which covers both overhead and profit, often includes a subcontractor markup on the work performed by specialists like electricians and plumbers. According to the National Association of Home Builders (NAHB), builders reported an average gross profit margin of 20.7% in 2023. On large remodeling projects, the margin might be 10-15%, while smaller renovations could see a 20-25% margin. The key is volume and efficiency; a successful GC juggles multiple projects, each contributing to their overall income.

General Contractor vs. Electrician: A Direct Income Comparison

When you put the two professions head-to-head, a clear pattern emerges based on career stage and risk tolerance. The choice between them often comes down to your personal and financial goals.

Journeyman vs. New General Contractor

The journeyman electrician salary vs general contractor at the start of their career often favors the electrician. A licensed journeyman has a marketable, in-demand skill and can command a solid, predictable wage. A new GC, however, may face inconsistent income as they build a client base and reputation. Their initial earnings are highly variable and depend on securing those first few profitable projects.

Master Electrician vs. Established General Contractor

Here, the comparison of a master electrician vs general contractor income becomes more interesting. A Master Electrician, particularly one running their own business, has significant earning potential, often breaking into the six-figure range. Their income is a mix of their own labor, supervising others, and the business’s profit. An established GC managing several residential or commercial projects, however, typically has a higher earning ceiling. The scale of their work—overseeing entire builds worth hundreds of thousands or millions of dollars—allows for greater overall profit, even if the electrical contractor profit margin on a per-job basis is sometimes higher than a GC’s overall margin.

Ultimately, the difference in commercial vs residential contractor earnings impacts both roles, but often more dramatically for GCs, as commercial projects offer much larger budgets and, consequently, higher potential fees and profit.

From a Tool Belt to a Business Plan: Transitioning from Electrician to General Contractor

For many experienced electricians, the idea of becoming a GC is a natural next step. The path of transitioning from electrician to general contractor is well-trodden for a reason. Electricians possess a deep understanding of one of the most complex and critical parts of any construction project. This expertise provides a huge advantage in project planning, bidding, and quality control.

However, the transition requires a new set of skills. You’ll need to learn about other trades, master construction finance, develop strong client management abilities, and navigate the world of permits and liability. It’s a shift from being the expert in the walls to the expert managing the entire site. If this path interests you, understanding the requirements is the first step. You can learn more about what it takes to get your GC license as an electrician and explore other profitable contractor licenses that could expand your business.

Whether you aim to become a top-tier Master Electrician or a successful General Contractor, continuous learning is non-negotiable. Sharpening your knowledge of the electrical code, business practices, and project management is essential for growth. Ready to take the next step in your career? Browse our courses to find the state-approved continuing education you need to stay ahead.

Related Resources

• 5 Smart Ways Electricians Can Boost Their Earning Potential