The median annual salary in London is currently £38,281 and the mean (average) is £51,662 before tax.
The median salary means half of all employees in London earn more than £38,281 and half earn less.
The mean (average) salary number of £51,662 is calculated by taking all the salaries in London adding them up and then dividing by the total number of jobs (currently 2,742,000 which is 11.73% of all UK jobs).
Over the past 12 months the London median salary of £38,281 has increased by 5.10% which places it 21.13% Above the median salary of the UK as a whole.
The mean salary of £51,662 has increased 8.40% during the same time period and now standards at 35.16% Above the mean salary of the UK.
Income (Before Tax) By Decile In London
Top 10%: £87,166 (and above)
Top 20% £63,743
Top 25% £57,651
Top 30% £52,331
Top 40% £44,623
Bottom 40% £32,761
Bottom 30% £27,389
Bottom 25% £24,418
Bottom 20% £27,389
Bottom 10% £11,745 (and below)
Average Monthly, Weekly & Hourly Pay (Before Tax) In London
The median salary of £38,281 works out to:
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- £3,190.08 per month
- £728.30 per week
- £20.27 per hour
The mean salary of £51,662 works out to:
- £4,305.17 per month
- £892.60 per week
- £26.74 per hour
Men vs Women Salary Differences (Before Tax) In London
Of the 2,742,000 jobs in London, 1,318,000 (48.07%) were held by men and 1,425,000 (51.97%) were held by women.
The median salary for men was £43,284 vs £33,957 for women.
The mean salary for men was £63,422 vs £40,786 for women.
This means men in London are paid 27.47% more based on median salaries or 55.50% more based on mean salaries than women.
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(Note this difference does not take into account the type of jobs held by men vs women just raw salary numbers)
Average Take-Home After-Tax Income In London
The calculations below look at how much money the most typical worker gets to keep after income tax, employee national insurance and standard 5% employee pension contributions.
Based on Median Salary of £38,281:
- Salary Subject to Tax: £24,108.95
- Income Tax Owed: £4,821.79
- National Insurance: £2,056.88
- Employee Pension Deduction: £1,602.05
Take-Home Pay: £29,800.28 (77.85% of gross salary)
Total Gross Pension Contributions (Employee + Employer): £2,563.28
Based on Mean Salary of £51,662:
- Salary Subject to Tax: £36,890.50
- Income Tax Owed: £7,378.10
- National Insurance: £3,043.84
- Employee Pension Deduction: £2,201.50
Take-Home Pay: £39,038.56 (75.57% of gross salary)
Total Gross Pension Contributions (Employee + Employer): £3,522.40
How Expensive Is It To Employ Someone In London?
The direct cost to employee someone includes salary, employer national insurance and employer pension contributions (3%).
Based on the median pay in London it works out to:
- Salary: £38,281
- Employer National Insurance: £4,992.15
- Employer Pension Contribution: £961.23
Total Cost To An Employer: £44,234.38 per year
Based on the mean pay in London it works out to:
- Salary: £51,662
- Employer National Insurance: £6,999.30
- Employer Pension Contribution: £1,320.90
Total Cost To An Employer: £59,982.20 per year
Income Tax And National Insurance Paid By Workers In London
Finally, how much income tax and national insurance do people in London pay altogether?
The calculations below show the combined totals based only on median and mean salaries. However, the actual number is significantly higher as “The 10% of income taxpayers with the largest incomes contribute over 60% of income tax receipts.”
If all workers in London paid income tax and national insurance based on the median salary of £38,281 the combined income tax and national insurance (employer and employee) paid would be £32,549,788,440.
If all workers in London paid income tax and national insurance based on the mean salary of £51,662 the combined income tax and national insurance (employer and employee) paid would be £47,769,040,080.
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More Salary Data By City
- Camden
- Hackney
- Hammersmith and Fulham
- Haringey
- Islington
- Kensington and Chelsea
- Lambeth
- Lewisham
- Newham
- Southwark
All the data presented here comes from the Office of National Statistics.