A person working as a Software Engineer in London typically earns around 80,500 GBP per year. Salaries range from 37,000 GBP (lowest) to 128,000 GBP (highest).
This is the average yearly salary including housing, transport, and other benefits. Software Engineer salaries vary drastically based on experience, skills, gender, or location. Below you will find a detailed breakdown based on many different criteria.
Software Engineer salaries in London range from 37,000 GBP per year (minimum salary) to 128,000 GBP per year (maximum salary).
The median salary is 86,900 GBP per year, which means that half (50%) of people working as Software Engineer(s) are earning less than 86,900 GBP while the other half are earning more than 86,900 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.
Closely related to the median are two values: the 25th and the 75th percentiles. Reading from the salary distribution diagram, 25% of Software Engineer(s) are earning less than 55,800 GBP while 75% of them are earning more than 55,800 GBP. Also from the diagram, 75% of Software Engineer(s) are earning less than 116,000 GBP while 25% are earning more than 116,000 GBP.
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
The experience level is the most important factor in determining the salary. Naturally the more years of experience the higher your wage. We broke down Software Engineer salaries by experience level and this is what we found.
A Software Engineer with less than two years of experience makes approximately 42,000 GBP per year.
While someone with an experience level between two and five years is expected to earn 56,100 GBP per year, 34% more than someone with less than two year's experience.
Moving forward, an experience level between five and ten years lands a salary of 83,000 GBP per year, 48% more than someone with two to five years of experience.
Additionally, Software Engineer(s) whose expertise span anywhere between ten and fifteen years get a salary equivalent to 101,000 GBP per year, 22% more than someone with five to ten years of experience.
If the experience level is between fifteen and twenty years, then the expected wage is 110,000 GBP per year, 9% more than someone with ten to fifteen years of experience.
Lastly, employees with more than twenty years of professional experience get a salary of 119,000 GBP per year, 8% more than people with fifteen to twenty years of experience.
|0 - 2 Years|
|2 - 5 Years||+34%|
|5 - 10 Years||+48%|
|10 - 15 Years||+22%|
|15 - 20 Years||+9%|
We all know that higher education equals a bigger salary, but how much more money can a degree add to your income? We broke down Software Engineer salaries by education level in order to make a comparison.
When the education level is Certificate or Diploma, the average salary of a Software Engineer is 47,900 GBP per year.
While someone with a Bachelor's Degree gets a salary of 75,200 GBP per year, 57% more than someone having a Certificate or Diploma degree.
A Master's Degree gets its holder an average salary of 126,000 GBP per year, 68% more than someone with a Bachelor's Degree.
|Certificate or Diploma|
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 the thoery. The average increase in compensation while changing jobs is approximately 10% more than the customary salary increment.
If you can afford the costs of higher education, the return on investment is definitely worth it. You should be able to recover the costs in roughly a year or so.
Though gender should not have an effect on pay, in reality, it does. So who gets paid more: men or women? Male Software Engineer employees in United Kingdom earn 4% more than their female counterparts on average.
Software Engineer(s) in United Kingdom are likely to observe a salary increase of approximately 13% every 16 months. The national average annual increment for all professions combined is 9% granted to employees every 15 months.
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.
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
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.
A Software Engineer is considered to be a moderate bonus-based job due to the generally limited involvement in direct revenue generation, with exceptions of course. The people who get the highest bonuses are usually somehow involved in the revenue generation cycle.
41% of surveyed staff reported that they haven't received any bonuses or incentives in the previous year while 59% said that they received at least one form of monetary bonus.
Those who got bonuses reported rates ranging from 3% to 6% of their annual salary.
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.
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.
The main two types of jobs
|Revenue Generators||Supporting 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.
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.
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.
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.
The average salary for Software Engineer is 10% less than that of Data Analysis. Also, Data Analysis salaries are 3% more than those of Information Technology.
|Job Title||Average Salary|
|Business Intelligence Analyst||82,500 GBP||+2%|
|Business Systems Analyst||72,400 GBP||-10%|
|Data Quality Analyst||78,300 GBP||-3%|
|Director of Application Development||122,000 GBP||+52%|
|Disaster Recovery Analyst||74,300 GBP||-8%|
|Enterprise Infrastructure Architect||99,000 GBP||+23%|
|ERP Analyst||89,300 GBP||+11%|
|Functional Analyst||80,300 GBP||-0%|
|Information Technology Training Analyst||80,100 GBP||-0%|
|OPS Manager||108,000 GBP||+34%|
|Reporting Analyst||81,400 GBP||+1%|
|Salesforce Administrator||77,700 GBP||-3%|
|SOA Analyst||80,200 GBP||-0%|
|Software Analyst||82,200 GBP||+2%|
|Software Architect||80,600 GBP||+0%|
|Software Engineer||80,500 GBP||+0%|
|Solutions Architect||113,000 GBP||+40%|
|Systems Analyst||77,200 GBP||-4%|
|Systems Architect||78,100 GBP||-3%|
|Technical Analyst||69,000 GBP||-14%|
|Technology Business Analyst||81,800 GBP||+2%|
|Kingston upon Hull||77,100 GBP|
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.