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Software Engineer Average Salary in London 2022

How much money does a Software Engineer make in London?

Average Yearly Salary
80,500 GBP
( 6,710 GBP monthly)


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 Salary Distribution in London

Median and salary distribution yearly London Software Engineer
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The median, the maximum, the minimum, and the range

  • Salary Range

    Software Engineer salaries in London range from 37,000 GBP per year (minimum salary) to 128,000 GBP per year (maximum salary).

  • Median 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.

  • Percentiles

    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.

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

Software Engineer Salary Comparison by Years of Experience

How does experience and age affect your pay?

Salary comparison by years of experience yearly London Software Engineer
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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.

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.

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.

Software Engineer average salary change by experience in London

0 - 2 Years
42,000 GBP
2 - 5 Years+34%
56,100 GBP
5 - 10 Years+48%
83,000 GBP
10 - 15 Years+22%
101,000 GBP
15 - 20 Years+9%
110,000 GBP
20+ Years+8%
119,000 GBP
Percentage increase and decrease are relative to the previous value

Typical Salary Progress for Most Careers

Salary Comparison By Experience Level
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Software Engineer Salary Comparison By Education

How do education levels affect salaries?

Displayed below is the average salary difference between different Software Engineer(s) who have the same experience but different education levels.

Salary comparison by education level yearly London Software Engineer
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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.

Software Engineer average salary difference by education level in London

Certificate or Diploma
47,900 GBP
Bachelor's Degree+57%
75,200 GBP
Master's Degree+68%
126,000 GBP
Percentage increase and decrease are relative to the previous value

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 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.

Typical Salary Difference by Education for Most Careers

Salary Comparison By Education Level
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Software Engineer Salary Comparison By Gender

Salary comparison by gender yearly United Kingdom Software Engineer
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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.

67,800 GBP
64,900 GBP
Percentage increase and decrease are relative to the previous value

Salary Comparison By Gender in United Kingdom for all Careers

Salary comparison by gender yearly United Kingdom
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Software Engineer Average Annual Salary Increment Percentage in United Kingdom

How much are annual salary increments in United Kingdom for Software Engineer(s)? How often do employees get salary raises?

Software Engineer

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.

Annual Salary Increment Rate United Kingdom Software Engineer
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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.

United Kingdom / All Professions

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.

Worldwide Salary Raises: All Countries and All Jobs

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Software Engineer Bonus and Incentive Rates in United Kingdom

How much and how often are bonuses being awarded?Annual Salary Bonus Rate United Kingdom Software Engineer
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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.

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.

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.

Software Engineer Average Hourly Wage in London

39 GBP per hour

The average hourly wage (pay per hour) in London is 39 GBP. This means that the average Software Engineer in London earns approximately 39 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.

Software Engineer VS Other Jobs

Salary Comparison Between Software Engineer and Information Technology yearly London
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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.

London VS United Kingdom

Salary Comparison Between London and United Kingdom yearly Software Engineer
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We compared Software Engineer salaries in London, England, and United Kingdom and we found that London salaries are 38% less than those of England. We also found out that England salaries are 97% more than those of United Kingdom.

Salary comparison with similar jobs

Job TitleAverage Salary
Business Intelligence Analyst82,500 GBP+2%
Business Systems Analyst72,400 GBP-10%
Data Quality Analyst78,300 GBP-3%
Director of Application Development122,000 GBP+52%
Disaster Recovery Analyst74,300 GBP-8%
Enterprise Infrastructure Architect99,000 GBP+23%
ERP Analyst89,300 GBP+11%
Functional Analyst80,300 GBP-0%
Information Technology Training Analyst80,100 GBP-0%
OPS Manager108,000 GBP+34%
Reporting Analyst81,400 GBP+1%
Salesforce Administrator77,700 GBP-3%
SOA Analyst80,200 GBP-0%
Software Analyst82,200 GBP+2%
Software Architect80,600 GBP+0%
Software Engineer80,500 GBP+0%
Solutions Architect113,000 GBP+40%
Systems Analyst77,200 GBP-4%
Systems Architect78,100 GBP-3%
Technical Analyst69,000 GBP-14%
Technology Business Analyst81,800 GBP+2%

Salary Comparison By City

CityAverage Salary
Abingdon61,700 GBP
Birmingham76,700 GBP
Bradford75,400 GBP
Brighton76,000 GBP
Bristol76,000 GBP
Cambridge67,600 GBP
Canterbury65,700 GBP
Chester63,700 GBP
Coventry76,600 GBP
Derby69,800 GBP
Durham63,600 GBP
Exeter69,400 GBP
Gloucester64,400 GBP
Hartlepool65,400 GBP
Kingston upon Hull77,100 GBP
Leeds76,300 GBP
Leicester76,400 GBP
Lincoln71,200 GBP
Liverpool76,300 GBP
London80,500 GBP
Manchester81,200 GBP
Newcastle72,800 GBP
Norwich69,100 GBP
Nottingham71,400 GBP
Oxford69,300 GBP
Peterborough72,500 GBP
Plymouth70,000 GBP
Poole68,500 GBP
Portsmouth73,800 GBP
Ripon59,800 GBP
Salisbury64,100 GBP
Sheffield80,900 GBP
Somerset78,900 GBP
Southampton70,500 GBP
Truro63,200 GBP
Wakefield61,900 GBP
Wells60,100 GBP
Winchester65,200 GBP
Wolverhampton69,700 GBP
York70,300 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

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