The median annual salary in Tower Hamlets is currently £40,207 and the mean (average) is £51,978 before tax.
The median salary means half of all employees in Tower Hamlets earn more than £40,207 and half earn less.
The mean (average) salary number of £51,978 is calculated by taking all the salaries in Tower Hamlets adding them up and then dividing by the total number of jobs (currently 101,000 which is 0.43% of all UK jobs).
Over the past 12 months the Tower Hamlets median salary of £40,207 has increased by -3.10% which places it 27.23% Above the median salary of the UK as a whole.
The mean salary of £51,978 has increased -3.50% during the same time period and now standards at 35.98% Above the mean salary of the UK.
Income (Before Tax) By Decile In Tower Hamlets
Top 10%: x (and above)
Top 20% £66,349
Top 25% £59,619
Top 30% £55,922
Top 40% £46,976
Bottom 40% £34,923
Bottom 30% £29,651
Bottom 25% £27,012
Bottom 20% £29,651
Bottom 10% x (and below)
Average Monthly, Weekly & Hourly Pay (Before Tax) In Tower Hamlets
The median salary of £40,207 works out to:
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- £3,350.58 per month
- £766.50 per week
- £20.96 per hour
The mean salary of £51,978 works out to:
- £4,331.50 per month
- £927.20 per week
- £27.98 per hour
Men vs Women Salary Differences (Before Tax) In Tower Hamlets
Of the 101,000 jobs in Tower Hamlets, 53,000 (52.48%) were held by men and 48,000 (47.52%) were held by women.
The median salary for men was £43,455 vs £37,090 for women.
The mean salary for men was £55,357 vs £48,251 for women.
This means men in Tower Hamlets are paid 17.16% more based on median salaries or 14.73% 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 Tower Hamlets
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 £40,207:
- Salary Subject to Tax: £25,938.65
- Income Tax Owed: £5,187.73
- National Insurance: £2,210.96
- Employee Pension Deduction: £1,698.35
Take-Home Pay: £31,109.96 (77.37% of gross salary)
Total Gross Pension Contributions (Employee + Employer): £2,717.36
Based on Mean Salary of £51,978:
- Salary Subject to Tax: £37,206.50
- Income Tax Owed: £7,441.30
- National Insurance: £3,050.16
- Employee Pension Deduction: £2,201.50
Take-Home Pay: £39,285.04 (75.58% of gross salary)
Total Gross Pension Contributions (Employee + Employer): £3,522.40
How Expensive Is It To Employ Someone In Tower Hamlets?
The direct cost to employee someone includes salary, employer national insurance and employer pension contributions (3%).
Based on the median pay in Tower Hamlets it works out to:
- Salary: £40,207
- Employer National Insurance: £5,281.05
- Employer Pension Contribution: £1,019.01
Total Cost To An Employer: £46,507.06 per year
Based on the mean pay in Tower Hamlets it works out to:
- Salary: £51,978
- Employer National Insurance: £7,046.70
- Employer Pension Contribution: £1,320.90
Total Cost To An Employer: £60,345.60 per year
Income Tax And National Insurance Paid By Workers In Tower Hamlets
Finally, how much income tax and national insurance do people in Tower Hamlets 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 Tower Hamlets paid income tax and national insurance based on the median salary of £40,207 the combined income tax and national insurance (employer and employee) paid would be £1,280,653,740.
If all workers in Tower Hamlets paid income tax and national insurance based on the mean salary of £51,978 the combined income tax and national insurance (employer and employee) paid would be £1,771,354,160.
Tower Hamlets Tax Calculator
More Salary Data By City
All the data presented here comes from the Office of National Statistics.