This paper develops an analytical solution for the settlement of jacked piles induced by reconsolidation of the surrounding soil. The Terzaghi’s radial consolidation theory is utilised to model the dissipation of the installation-induced excess pore water pressure. A two-layer subgrade model, more general than single-layer ones and capable of being easily extended to multilayer soil systems, is adopted to analyse the settlement of the soil surrounding jacked piles so as to predict the additional settlement of the piles. The pile-soil interaction is properly considered in deriving the differential equations to formulate the problem considered. Example analysis is performed to illustrate the application of the proposed solution. Results indicate that the additional settlement of jacked piles, induced by reconsolidation of the surrounding soil, should be considered in calculation of the settlement of the pile after installation. Parametric studies are conducted to investigate the impact of the Poisson’s ratio, overconsolidation ratio, shear modulus and initial void ratio on the settlement of the pile due to consolidation of the surrounding soil. The results show that the Poisson’s ratio and the overconsolidation ratio of the upper stratum have pronounced effects on the settlement of the pile top.