Browse Salaries
Best Paying Jobs
Salary Increase Letters
Career Articles

Average Salary in London 2022

How much money does a person working in London make?

Average Yearly Salary
86,400 GBP
( 7,200 GBP monthly)


A person working in London typically earns around 86,400 GBP per year. Salaries range from 21,900 GBP (lowest average) to 386,000 GBP (highest average, actual maximum salary is higher).

This is the average yearly salary including housing, transport, and other benefits. Salaries vary drastically between different careers. If you are interested in the salary of a particular job, see below for salaries for specific job titles.

Distribution of Salaries in London

Median and salary distribution yearly London
Share This Chart
        Get Chart Linkhttp://www.salaryexplorer.com/charts/united-kingdom/england/london/median-and-salary-distribution-yearly-london.jpg

The median, the maximum, the minimum, and the range

  • Salary Range

    Salaries in London range from 21,900 GBP per year (minimum salary) to 386,000 GBP per year (maximum average salary, actual maximum is higher).

  • Median Salary

    The median salary is 93,300 GBP per year, which means that half (50%) of the population are earning less than 93,300 GBP while the other half are earning more than 93,300 GBP. The median represents the middle salary value. Generally speaking, you would want to be on the right side of the graph with the group earning more than the median salary.

  • Percentiles

    Closely related to the median are two values: the 25th and the 75th percentiles. Reading from the salary distribution diagram, 25% of the population are earning less than 51,800 GBP while 75% of them are earning more than 51,800 GBP. Also from the diagram, 75% of the population are earning less than 259,000 GBP while 25% are earning more than 259,000 GBP.

What is the difference between the median and the average salary?

Both are indicators. If your salary is higher than both of the average and the median then you are doing very well. If your salary is lower than both, then many people are earning more than you and there is plenty of room for improvement. If your wage is between the average and the median, then things can be a bit complicated. We wrote a guide to explain all about the different scenarios. How to compare your salary

Salary Comparison by Years of Experience

How does a person's salary progress over time?

Salary Comparison By Experience Level
Share This Chart
        Get Chart Linkhttp://www.salaryexplorer.com/images/salary-by-experience.jpg

The experience level is the most important factor in determining the salary. Naturally the more years of experience the higher the wage.

Generally speaking, employees having experience from two to five years earn on average 32% more than freshers and juniors across all industries and disciplines.

Professionals with experience of more than five years tend to earn on average 36% more than those with five years or less of work experience.

Change in salary based on experience varies drastically from one location to another and depends hugely on the career field as well. The data displayed here is the combined average of many different jobs. To view accurate figures, choose a specific job title.

As you hit the ten years mark, the salary increases by 21% and an additional 14% for those who have crossed the 15 years mark.

Those figures are presented as guidelines only. The numbers become more significant if you consider one job title at a time.

On average, a person's salary doubles their starting salary by the time they cross the 10 years* experience mark.
* Based on the average change in salary over time. Salary variations differ from person to person.

Salary Comparison By Education

How does the education level affect your salary?

Salary Comparison By Education
Share This Chart
        Get Chart Linkhttp://www.salaryexplorer.com/images/salary-comparison-by-education.jpg

It is well known that higher education equals a bigger salary, but how much more money can a degree add to your income? We compared the salaries of professionals at the same level but with different college degrees levels across many jobs, below are our findings.

Change in salary based on education varies drastically from one location to another and depends hugely on the career field as well. The data displayed here is the combined average of multiple jobs. To view accurate figures, choose a specific job title.

Workers with a certificate or diploma earn on average 17% more than their peers who only reached the high school level.

Employees who earned a Bachelor's Degree earn 24% more than those who only managed to attain a cerificate or diploma.

Professionals who attained a Master's Degree are awarded salaries that are 29% more than those with a Bachelor's Degree.

Finally, PhD holders earn 23% more than Master's Degree holders on average while doing the same job.

Is a Master's degree or an MBA worth it? Should you pursue higher education?

A Master's degree program or any post-graduate program in United Kingdom costs anywhere from 29,600 Pound Sterling(s) to 88,700 Pound Sterling(s) and lasts approximately two years. That is quite an investment.

You can't really expect any salary increases during the study period, assuming you already have a job. In most cases, a salary review is conducted once education is completed and the degree has been attained.

Many people pursue higher education as a tactic to switch into a higher paying job. The numbers seem to support this tactic. The average increase in compensation while changing jobs is approximately 10% more than the customary salary increment.

The decision really depends on your situation and experience among many other factors. Putting all variables aside, if you can afford the costs of higher education then the return on investment is definitely worth it. You should be able to recover the costs in roughly a year or so.

Salary Comparison By Gender

Salary comparison by gender yearly United Kingdom
Share This Chart
        Get Chart Linkhttp://www.salaryexplorer.com/charts/united-kingdom/salary-comparison-by-gender-yearly-united-kingdom.jpg

Though gender should not have an effect on pay, in reality, it does. So who gets paid more: men or women? Male employees in United Kingdom earn 4% more than their female counterparts on avergae across all sectors.

72,600 GBP
69,500 GBP
Percentage increase and decrease are relative to the previous value

Average Annual Salary Increment Percentage in United Kingdom

How much are annual salary increments in United Kingdom? How often do employees get salary raises?

United Kingdom

Employees in United Kingdom are likely to observe a salary increase of approximately 9% every 15 months.

Annual Salary Increment Rate United Kingdom
Share This Chart
        Get Chart Linkhttp://www.salaryexplorer.com/charts/united-kingdom/annual-salary-increment-rate-united-kingdom.jpg

The figures provided here are averages of numbers. Those figures should be taken as general guidelines. Salary increments will vary from person to person and depend on many factors, but your performance and contribution to the success of the organization remain the most important factors in determining how much and how often you will be granted a raise.

The term 'Annual Salary Increase' usually refers to the increase in 12 calendar month period, but because it is rarely that people get their salaries reviewed exactly on the one year mark, it is more meaningful to know the frequency and the rate at the time of the increase.

How to calculate the salary increment percentage?

The annual salary Increase in a calendar year (12 months) can be easily calculated as follows: Annual Salary Increase = Increase Rate x 12 ÷ Increase Frequency

The average salary increase in one year (12 months) in United Kingdom is 7%.

Annual Increment Rate By Industry 2021

Information Technology

Listed above are the average annual increase rates for each industry in United Kingdom for the year 2021. Companies within thriving industries tend to provide higher and more frequent raises. Exceptions do exist, but generally speaking, the situation of any company is closely related to the economic situation in the country or region. These figures tend to change frequently.

Average Salary Increase Rate by Experience Level

Junoir Level
3% - 5%
6% - 9%
Senior Level
10% - 15%
Top Management
15% - 20%

The difference in increment rates is somehow justified because employers put more effort to retain more experienced staff since they are harder to acquire than less experienced ones.

Worldwide Salary Raises: All Countries and All Jobs

Share This Chart
        Get Chart Linkhttp://www.salaryexplorer.com/images/salary-increment-world.jpg

Bonus and Incentive Rates in United Kingdom

How much and how often are bonuses being awarded?Annual Salary Bonus Rate United Kingdom
Share This Chart
        Get Chart Linkhttp://www.salaryexplorer.com/charts/united-kingdom/annual-salary-bonus-rate-united-kingdom.jpg

47% of surveyed staff in United Kingdom reported that they haven't received any bonuses or incentives in the previous year while 53% said that they received at least one form of monetary bonus.

Those who got bonuses reported rates ranging from 3% to 5% of their annual salary.

Received Bonus
No Bonus

Types of Bonuses Considered

Individual Performance-Based Bonuses

The most standard form of bonus where the employee is awarded based on their exceptional performance.

Company Performance Bonuses

Occasionally, some companies like to celebrate excess earnings and profits with their staff collectively in the form of bonuses that are granted to everyone. The amount of the bonus will probably be different from person to person depending on their role within the organization.

Goal-Based Bonuses

Granted upon achieving an important goal or milestone.

Holiday / End of Year Bonuses

These types of bonuses are given without a reason and usually resemble an appreciation token.

Bonuses Are Not Commissions!

People tend to confuse bonuses with commissions. A commission is a prefixed rate at which someone gets paid for items sold or deals completed while a bonus is in most cases arbitrary and unplanned.

Bonus Rates Comparison by Career Field

Business Development
Marketing / Advertising
Information Technology
Customer Service
Human Resources

What makes a position worthy of good bonuses and a high salary?

The main two types of jobs

Revenue GeneratorsSupporting Cast

Employees that are directly involved in generating revenue or profit for the organization. Their field of expertise usually matches the type of business.

Employees that support and facilitate the work of revenue generators. Their expertise is usually different from that of the core business operations.

A graphics designer working for a graphics designing company.

A graphic designer in the marketing department of a hospital.

Revenue generators usually get more and higher bonuses, higher salaries, and more frequent salary increments. The reason is quite simple: it is easier to quantify your value to the company in monetary terms when you participate in revenue generation.

Try to work for companies where your skills can generate revenue. We can't all generate revenue and that's perfectly fine.

Bonus Comparison by Seniority Level

Top management personnel and senior employees naturally exhibit higher bonus rates and frequencies than juniors. This is very predictable due to the inherent responsibilities of being higher in the hierarchy. People in top positions can easily get double or triple bonus rates than employees down the pyramid.

Salaries for popular jobs

Job TitleAverage Salary
Accounting and Finance
Accountant56,000 GBP
Accounting Assistant43,100 GBP
Accounting Manager129,000 GBP
Bookkeeper37,700 GBP
Chartered Accountant73,800 GBP
Corporate Treasurer113,000 GBP
Financial Analyst101,000 GBP
Financial Manager171,000 GBP
Internal Auditor79,000 GBP

Administration / Reception / Secretarial
Administrative Assistant41,500 GBP
Office Manager69,200 GBP
Receptionist29,700 GBP
Secretary37,300 GBP

Advertising / Grapic Design / Events
Art Director83,600 GBP
Creative Director83,200 GBP
Graphic Designer54,300 GBP
Photographer46,400 GBP

Airlines / Aviation / Aerospace / Defense
Aerospace Engineer108,000 GBP
Air Traffic Controller91,100 GBP
Flight Attendant58,600 GBP
Pilot136,000 GBP

Architect95,400 GBP
CAD Drafter42,200 GBP

Mechanic31,500 GBP
Service Advisor56,300 GBP

Bank Branch Manager148,000 GBP
Teller29,800 GBP

Teacher63,400 GBP
Translator73,800 GBP

Business Planning
Business Analyst102,000 GBP
Business Development Manager132,000 GBP
Project Manager89,400 GBP

Care Giving and Child Care
Nanny34,800 GBP
Nursery Teacher30,100 GBP

Construction / Building / Installation
Civil Engineer76,500 GBP
Construction Project Manager139,000 GBP
Health and Safety Officer35,400 GBP

Customer Service and Call Center
Call Center Representative30,100 GBP
Customer Service Manager116,000 GBP
Customer Service Representative31,700 GBP

Electrical Engineer77,900 GBP
Engineer80,300 GBP
Mechanical Engineer79,000 GBP

Executive and Management
Chief Executive Officer189,000 GBP
Chief Financial Officer173,000 GBP
General Manager150,000 GBP

Food / Hospitality / Tourism / Catering
Chef51,500 GBP
Executive Chef57,800 GBP
Hotel Manager145,000 GBP
Travel Agent52,700 GBP
Waiter / Waitress26,000 GBP

Health and Medical
Dentist195,000 GBP
Dietitian158,000 GBP
Laboratory Technician62,700 GBP
Nurse63,000 GBP

Human Resources
Human Resources Manager122,000 GBP
Human Resources Officer50,900 GBP

Information Technology
Computer Technician64,100 GBP
Database Administrator78,100 GBP
Developer / Programmer81,100 GBP
Information Technology Manager134,000 GBP
Network Engineer73,200 GBP

Law Enforcement / Security / Fire
Police Officer49,200 GBP

Attorney154,000 GBP
Legal Assistant45,200 GBP

Media / Broadcasting / Arts / Entertainment
Journalist89,900 GBP

Pharmaceutical and Biotechnology
Biomedical Engineer71,800 GBP
Pharmacist101,000 GBP

Sales Retail and Wholesale
Cashier31,500 GBP
Sales Manager149,000 GBP
Sales Representative55,200 GBP

Teaching / Education
Elementary School Teacher55,200 GBP
Secondary School Teacher67,600 GBP

Average Hourly Wage in London

42 GBP per hour

The average hourly wage (pay per hour) in London is 42 GBP. This means that the average person in London earns approximately 42 GBP for every worked hour.

Hourly Wage = Annual Salary ÷ ( 52 x 5 x 8 )

The hourly wage is the salary paid in one worked hour. Usually jobs are classified into two categories: salaried jobs and hourly jobs. Salaried jobs pay a fix amount regardless of the hours worked. Hourly jobs pay per worked hour. To convert salary into hourly wage the above formula is used (assuming 5 working days in a week and 8 working hours per day which is the standard for most jobs). The hourly wage calculation may differ slightly depending on the worked hours per week and the annual vacation allowance. The figures mentioned above are good approximations and are considered to be the standard. One major difference between salaried employees and hourly paid employees is overtime eligibility. Salaried employees are usually exempt from overtime as opposed to hourly paid staff.

London VS United Kingdom

Salary Comparison Between London and United Kingdom yearly
Share This Chart
        Get Chart Linkhttp://www.salaryexplorer.com/charts/united-kingdom/england/london/salary-comparison-between-london-and-united-kingdom-yearly.jpg
We compared salaries in London, England, and United Kingdom and we found that London salaries are 36% less than those of England. We also found out that England salaries are 90% more than those of United Kingdom.

Salary Comparison By City

CityAverage Salary
Abingdon66,300 GBP
Birmingham84,900 GBP
Bradford80,500 GBP
Brighton78,400 GBP
Bristol83,700 GBP
Cambridge71,900 GBP
Canterbury67,500 GBP
Chester69,800 GBP
Coventry81,000 GBP
Derby78,900 GBP
Durham69,300 GBP
Exeter73,100 GBP
Gloucester72,400 GBP
Hartlepool71,000 GBP
Kingston upon Hull80,700 GBP
Leeds85,300 GBP
Leicester82,400 GBP
Lincoln74,200 GBP
Liverpool84,800 GBP
London86,400 GBP
Manchester84,200 GBP
Newcastle80,500 GBP
Norwich73,800 GBP
Nottingham81,400 GBP
Oxford76,200 GBP
Peterborough77,100 GBP
Plymouth79,400 GBP
Poole74,900 GBP
Portsmouth78,000 GBP
Ripon67,500 GBP
Salisbury69,800 GBP
Sheffield85,100 GBP
Somerset81,900 GBP
Southampton79,100 GBP
Truro68,500 GBP
Wakefield64,800 GBP
Wells60,700 GBP
Winchester63,600 GBP
Wolverhampton72,600 GBP
York70,600 GBP

Government vs Private Sector Salary Comparison

Where can you get paid more, working for a private company or for the government? Public sector employees in United Kingdom earn 4% more than their private sector counterparts on average across all sectors.

Private Sector
69,500 GBP
Public Sector+4%
72,600 GBP
Percentage increase and decrease are relative to the previous value

Browse Salaries

Salary Increase Letters

Best Paying Jobs
HomePrivacy PolicySalary Comparison

©Salary Explorer 2022