Salaries
August 28, 2023
5
min read

Average Salary in London

Eli McGarvie

Are you contemplating a move to the bustling city or simply curious about the average London salary? Either way, we've got you covered with our comprehensive salary guide. 

We'll explore the average salaries in different areas and professions and factors that impact salary levels. So, let's dive in and find out the average salary in the vibrant city of London.

What is the average salary in London? 

According to the Office for National Statistics (ONS), the average salary for a full-time employee in London is £41,866, higher than the national average of £33,000. 

RELATED: Average Salary in the UK

The typical income in the capital is determined by several factors, such as job type and industry. When it comes to the average salary in London, there are a few key points to consider:

Industry and job type

Different industries have varying salary ranges. For example, the tech and finance sectors tend to offer higher average pay than other industries.

Your job type within a specific industry can also impact your salary. Senior positions are generally associated with higher pay than entry-level or junior roles.

Cost of living

The cost of living in London is significantly higher than in other parts of the UK. It's important to consider this when evaluating your salary.

Expenses for a single person range from £31,000 to £36,000 per year, while expenses for a family of four range from £44,000 to £89,000 per year.

Considering these factors will give you a better understanding of the average pay in London and help you assess your financial situation in the city.

What's a good salary In London?

The following information refers to Transport Zones, commonly called "Zones" by Londoners. Click here for a comprehensive map of the zones and their corresponding suburbs.

If you want to have a comfortable lifestyle in zones 1-2 of London, it is recommended that you earn at least £60,000 per year in 2023. The average salary in London is £41,866 per year, but that may not be enough to cover the high cost of living in the city.

With a salary of £60,000, you can afford a decent standard of living and have some room for leisure activities and occasional trips.

Living in zones 1-2 of London can be pretty expensive, especially regarding housing. Sharing a flat with one person in a nice area could cost around £1,100-£1,200 per month. However, the average salary should cover most costs if you are willing to live further away in zones 3-5.

It's important to consider your circumstances and spending habits when determining what salary is comfortable for you. Additionally, it is worth noting that the cost of living in London is constantly increasing due to inflation. Therefore, earning a higher salary while living in London ensures financial stability and security. 

Average salary in London by area

Here's a breakdown of the average salary in different areas of London:

Area Average Salary
City of London £87,500
Westminster £65,000
Camden £50,000
Lambeth £42,500

It's important to remember that these figures are just averages and individual salaries can vary depending on the industry, job type, and qualifications. 

It's also important to mention that all the regions in the above table fall under Zone 1.

Average salary in London by industry

Professions in various industries in London have different income levels that can impact your financial situation. Depending on the industry and job type, salaries can vary significantly. 

For example, professions in the tech and finance sectors tend to have higher pay than other industries. 

According to Glassdoor, the data below displays the job sectors with the highest demand in London and the average pay you can expect to receive.

Industry Average Annual Salary
IT Specialist £50,767
Delivery Driver £32,405
Customer Service £27,553
Healthcare £34,636
Finance £52,335
Hospitality £22,515

Further analysing salaries in London by profession 

If you want to clearly understand the income levels in different professions in London, it's important to further analyse the data. The average salary per industry alone may not accurately represent specific professions. Therefore, we have further broken down each sector to provide a more accurate representation of typical salaries.

The salary information used in this article was obtained from Glassdoor.

1. IT Specialist

London is a central hub for technology and digital industries with a thriving IT sector. There is a constant need for skilled IT professionals in various roles. The demand for IT jobs is expected to grow as technology plays a crucial role in various industries.

The below professions are in the most high demand in the industry.

Profession Average Annual Salary
Software Engineer £68,359
Web Developer £45,616
Data Architect £88,493
Business Analyst £54,424

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2. Customer Service

London has a large customer base that requires support and assistance. Many retail, finance, hospitality, and technology companies have customer service departments or call centres in London to cater to their customers' needs. Therefore, numerous job opportunities are available in the city's customer service sector.

Profession Average Annual Salary
Customer Assistant £27,423
Store Manager £36,856
Receptionist £26,168
Concierge £28,455

3. Healthcare

London is home to several renowned hospitals, clinics, and research institutions, creating ample opportunities for healthcare professionals to find employment. The demand for healthcare workers is exceptionally high in fields such as nursing, general practice, mental health, and allied health professions.

Profession Average Annual Salary
Nurses £38,455
Healthcare Assistant (HCA) £32,211
Medical Receptionist £25,365
Pharmacist £48,785

4. Finance

London is one of the major financial centres in the world, home to numerous global banks, investment firms, and financial institutions. The city attracts top talent worldwide and offers various finance job opportunities, including investment banking, asset management, hedge funds, and financial consulting roles. The city's thriving financial services industry and the need for skilled individuals to support various financial operations and services drive the demand for finance professionals.

Profession Average Annual Salary
Financial Analyst £54,600
Accountant £49,276
Investment Banker £52,535
Payroll Manager £56,896

5. Hospitality

London is a major international tourist destination and a global business hub, attracting millions of visitors and business travellers annually. This influx of people creates a continuous need for hotels, restaurants, bars, and other hospitality establishments. Additionally, London has a thriving food and beverage scene, with numerous new restaurants and cafes opening regularly. Consequently, there is a constant demand for skilled and experienced workers in the hospitality industry.

Profession Average Annual Salary
Bar staff £33,150
Waiter/Waitress £30,602
Barista £53,175
Room Attendant £20,503

Average salary in London by the highest-paid profession

London offers a wide range of job opportunities with varying salary levels. The highest-paid profession in the city is often found in the finance industry. Roles such as investment bankers, fund managers, and financial analysts can command high salaries due to the demanding nature of the work and the importance of the industry in the city's economy. 

Other industries that offer high-paying jobs in London include technology, law, and specialised healthcare. Here are some of the highest-paid professions in London and their corresponding average annual salary. 

Profession Average Annual Salary
Fund Managers £95,664
Surgeons £75,428
Lawyer £85,158
Engineering Manager £108,214

RELATED: 10 Highest Paying Jobs in the UK

Average salary in London by education level

According to data obtained from Statista, Individuals who have received a doctorate degree are known to earn the highest annual salaries, with an average pay of £94,587. Following closely behind are those with a master's degree, who earn an average salary of £77,956.

In addition to educational qualifications, the number of years of work experience also plays a significant role in determining one's earnings in London. Those with over 20 years of experience earn an average of £103,076 per year, while those with 16 to 20 years of experience have an average salary of £101,603 in the capital.

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Average Salary in London

August 28, 2023
5
min read

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