What Is A Good Salary in London? [+Average Salaries 2022]
People from around the world move to the British capital in hopes of a better future and higher income. How much will you earn in London, UK? Will London meet your salary expectations?
A net monthly salary between £2,800 and £3,000 is considered a decent salary in London. This corresponds to a gross annual salary above £45,000. Everyone getting between £3,300 and £4,000 gross per month is a good earner.
British capital attracts thousands of expats and migrants every year. Yet, London’s salaries aren’t as high as its cost of living. London is the most expensive place to live in the United Kingdom. Read this article to learn what to expect in terms of expenses and salaries when moving to London, UK, in 2022. Learn about salary in the UK in this article.
What is considered a good salary in London in 2022?
A salary of £50,000 is considered to be good in London. If you have a family, a more comfortable income starts at £60,000.
With that income, you can afford a two-bedroom apartment not far away from the city center, eat out, and travel around on weekends.
Even after paying taxes, it’s still a good salary for a single person, giving you a decent standard of living. A family will likely need two incomes to have a good standard of living.
According to the different resources, the average salary in London is £57,400 in 2022. This translates to £4,783 in monthly wage (Plumplot 2022). In contrast, the average salary across the country is only £40,000 (2022).
Hence, the high cost of living in London is reflected in the wages, which are by far the highest in the UK.
Yet, not everyone in London earns an average salary. Some people have to live on less. And there are also some small amount of people making over £100,000 annually.
According to the statistics, the average gross salary in London is £57,400 in 2022.
Furthermore, the Average salary survey reports that the average salary in London as of January 2022 is £60,921 ($84,922 USD), and the most typical is £33,717 ($47,000 USD).
Example of a good salary in London
Base gross salary: £53,700, which comes to £3,320 monthly after tax. A salary of £50,000 will give you around £3,000 per month after tax, while it’s £2,550 with £40,000.
What will your life look like with a good level of monthly income (around £3,000 net) in London, UK? £50,000 is a realistic salary for most academics with a few years of experience.
- Housing: You can rent a one-bedroom apartment in the city center (£1,500), utilities will cost you another £200 and £35 for the internet.
- Groceries and food: £500 – £600.
- Transportation: £120.
- Private health insurance: £100
- Disposal income per month: £545 for closing and shoes, personal items, eating out, entertainment, weekend trips, yearly holidays, etc.
- You can go on holidays 1-2 times a year.
- You also can spend some weekends away.
- Saving: you might be able to put away a few hundred pounds.
Learn more about the cost of living in the UK.
The total fixed cost is around £2,440 per month. With a salary of £50,000, you will receive £37,000 annually after tax or about £3,000 per month. Consequently, someone with an income of £50,000 can even put aside some amount in savings every month.
Finally, for a standard, comfortable life in London for a single person, you would need a salary of at least £40,000 a year. For a couple, you need to earn at least £60,000-70,000 if your partner doesn’t work. That’s about £3,624 – £4,108 in the household income.
This household income will cover your rent, transport, lunches at work, and groceries.
Also read: What is a good salary in the UK?
Income taxes in London
Net salary is an amount without income taxes and deductions for social security contributions. Overall, taxes and social security contributions are around 25% of the employee’s gross salary in the UK.
The most common income tax rate is 20%, and social security employees pay between 0% and 12% of their salary, depending on the level and class of income. Employers also pay a share.
British social insurance includes unemployment, sickness, disability, occupational accidents, occupational diseases, maternity, widowhood, and pensions.
In the UK, the so-called “pay as you earn” (PAYE) system applies to income taxes. The tax-free amount is £12,570 per year. Generally, there are three income tax rates (slightly different rates apply in Scotland):
- 20% – for annual salary between £12,570 and £50,270
- 40% – for annual salary between £50,271 and £150,000
- 45% – for annual salary above £150,001
Yet, the majority of people pay 20% in income tax and 12% in social security.
Learn about highest-paying jobs in London and jobs that are in high demand.
Salaries in London
The job market is huge in London, and so is the number of immigrants from all corners of the planet. Salaries in London range a lot. You can earn as little as £14,000 per year or as much as £100,000 in the executive role.
For example, interns and fresh graduates earn the least in the professional field. Also, people with no official degree are among low earners.
Junior or executive roles usually start at £18,000 and finish at £30,000-£32,000, depending on your experience. Managerial positions start at £35,000-£49,000 and can go far beyond.
Also, software developers always have higher salaries, so with 2-3 years of experience as a backend developer, you can get a wage of £40,000-£55,000 a year.
Managing living expenses while earning below £30,000 in London will be difficult.
Furthermore, a high salary is required for someone willing to purchase real estate in London. You want to earn around £100k per year alone or together with your partner to buy a three-bedroom house in London.
If you make less than £100k, it’s possible to purchase a 1 or 2-bedroom apartment. Alternatively, homes can be obtained outside London, but it will involve a solid daily commute.
Which city is better for living London or Toronto?
Average salary in London in 2022
According to the statistics, the average gross salary in London is £57,400 in 2022 (Plumplot 2022), while the most typical salary was £33,717 ($47,000 USD), according to the average salary survey report.
However, resources like Glassdoor and Payspective indicate that the average wage in London is about £41,000. This is the monthly average wage, including all benefits and bonuses.
The most common salary ranges in London are:
- £32,000-£36,000
- £36,000-£39,000
- £39,000-£43,000
- £43,000-£47,000
- £47,000-£50,000
- £57,000-£61,000
Furthermore, men earn on average £65,855 and women – £49,858. Yet, salaries vary drastically between different careers.
The best-paid jobs in London are in Finance & Banking, with an average income of £80,203, and Management & Business, with £76,688 annually.
Depending on the education, the highest salaries receive people with Doctorate Degrees with a salary of £77,979. The second most paid professionals have Masters’s Degree – £64,349.
Your work experience affects earnings as well. So, people with 20+ years of experience receive a salary of £85,368. Employees with 16-20 years of experience receive £82,929.
The average salary in London among different professions (2022):
| # | Professional field | Average salary/Year |
|---|---|---|
| 1 | Finance & Banking | £80,203 GBP |
| 2 | Management & Business | £76,688 GBP |
| 3 | Law | £75,827 GBP |
| 4 | Properties & Real Estates | £74,608 GBP |
| 5 | Insurance | £71,595 GBP |
| 6 | Engineers & Technicians | £67,936 GBP |
| 7 | IT & Programming | £67,577 GBP |
| 8 | Agriculture & Fishing | £67,075 GBP |
| 9 | Construction & Labor Workers | £65,640 GBP |
| 12 | Human Resources | £59,973 GBP |
| 13 | Engineers & Technicians | £57,319 GBP |
| 15 | Health Care & Medical | £55,453 GBP |
| 16 | Accounting & Administration | £54,306 GBP |
| 18 | Military | £51,938 GBP |
| 19 | Marketing, Sales, Purchase | £51,436 GBP |
| 21 | Geography & Geodesy | £49,714 GBP |
| 22 | Making Design | £48,853 GBP |
| 23 | Media | £47,203 GBP |
| 24 | Salesmen & Saleswomen | £46,486 GBP |
| 25 | Architect Constructions | £45,195 GBP |
| 26 | Logistics, Road, Railway | £44,908 GBP |
| 27 | Sports & Recreation | £44,764 GBP |
| 28 | Aviation & Shipping | £44,549 GBP |
| 29 | Hotels & Tourism | £43,473 GBP |
| 30 | Education & University | £42,397 GBP |
| 31 | Public Sector | £42,253 GBP |
| 32 | Automobile | £41,393 GBP |
| 33 | Fashion | £41,034 GBP |
| 34 | Arts, Culture, Performance | £40,317 GBP |
| 35 | Manufacturing & Labor Workers | £37,447 GBP |
| 36 | Organization & Coordination | £36,730 GBP |
| 37 | Security & Fireguard | £34,936 GBP |
| 38 | Customer Services | £33,717 GBP |
| 39 | Restaurants, Inns, Pubs | £32,282 GBP |
| 40 | Archaeology & History | £28,910 GBP |
In other British cities, these numbers are significantly lower. To compare, here are the average salaries for some typical jobs in the UK:
| Cashier | £15,483 |
| Copywriter | £34,113 |
| Financial analyst | £40,042 |
| Graphic designer | £26,738 |
| Mobile developer | £41,431 |
| Product manager | £46,063 |
| Receptionist | £17,553 |
| Software engineer | £42,925 |
| Teacher | £25,539 |
| Web developer | £32,664 |
Highest paying jobs in London
Some of the highest-paying jobs in London are:
- (Key) account manager
- Lawyer
- General counsel
- Engineer
- Workers in technical research and development
- Medical specialist
- Workers in business development
- Tax consultant and auditor
- Workers in production planning and controlling
- Consultant
Average salary in the UK
When talking about salaries in London, we also should mention the average income in the UK in general.
According to the ONS, the median gross salary of a full-time employee in the UK in 2022 was £640 per week or £2,560 per month and £30,720 per year.
It’s a 5.0% increase from 2021. These numbers include holiday pay and other benefits.
In April 2021, the average earnings for full-time employees were £610 per week or £29,280 a year, while part-time workers in the UK earn an average of £11,310.
Nonetheless, a working person in the UK typically earns between £2,600 – £3,000 gross per month. The most common salary in the UK is between £32,000 and £36,000.
Hence, earning over £31,000 in the UK puts you at an above-average income.
The minimum wage in the UK
In 2022, the minimum wage in the UK is £9,50 per hour for someone above age 23.
Average expenses in London with the average salary
Of course, the salary needed to live in London in 2022 heavily depends on your lifestyle. One is clear; you need at least £1,900 per month to have a most basic life.
The average cost of living in London is about £2,892 per person per month. The Price Index for the city of London is 222. This score indicates that food, rent, and other necessities are more than twice as expensive in London than in the average global city.
Learn how much a family spends in the UK.
The total cost of living in London is about 38,5% higher than the Central European average.
People with kids need more money. The cost of living for a couple with a one-year-old is around £49,714 annually or £4,142 monthly. Childcare is expensive in London.
Furthermore, don’t be surprised but the cost of living in New York City is about the same as in London.
Example of some ordinary expenses in London:
- Rent: £2,219 per month for a couple or family (Average across London for the beginning of 2022)
- Basic public transport monthly ticket: £146
- Taxi fare for a 5-mile journey on a business day: £26
- Dinner for two in a pub: £38
- 2 theatre tickets: £171
- 1 cocktail in a club: £11
- 1 pint of beer: £5,20
Cost of living in London:
- Family of four estimated monthly costs: £5,057
- Single-person estimated monthly costs: £3,051
- London is the 3rd most expensive city in Western Europe
- The cost of living in London is more expensive than in 97% of cities in the World
- Whereas the cost of living in the UK is more expensive than in 83% of countries in the World (12 out of 63)
You will spend significantly more money in London (at least 20%) than in all other locations. In 2020, London was ranked among the 10 most expensive cities to live in Europe. If you want to relocate to the UK but pay less, cheaper locations can be found in northern England.
- In London, the rent of a one-bedroom apartment will be £1,662
- Meal for 2 – £60
- Transportation (monthly pass) – £158
Housing
London is famous for obscure rent prices. Rent in London will contribute to at least 30% of your monthly budget. The closer you are to the city center, the higher the rent.
If you want to live in a nice neighborhood in a decently connected location (that would be zones 2-3 of London), prepare to pay around £1,200 for a studio and £1,500-1,600 for a 1-bedroom flat.
On the other hand, renting a family home costs about £3,100 a month on average in the center and about £1,900 for one outside the center.
However, you can share a place with other people, and that would be way cheaper.
Rents in other English cities are significantly lower. For instance, in Manchester, you will get a one-bedroom apartment for about £700 a month.
Average monthly costs for various housing types in London:
- Room flat share: £600-£1,200
- 1-bed apartment in the city center: £1,400 – £1,700
- 1-bed apartment outside the city center: £1,200 – £1,400
- 2 bed apartment: £1,900-£2,400
- 2-3 bed house: £1,900-£3,300
- Internet: £32
- Utilities (gas, electric, and water for an 85m2 apartment): £171
- Council Tax: £80
Consequently, more and more people cannot afford to live in London. Hence, they are moving to cities nearby. This fact has driven prices high in those cities as well. Thus, the cost of living in any town near London has skyrocketed.
Food
Food in London is on the European average but more expensive than in most EU countries. Eating and drinking out is particularly pricey. You can easily spend £50 – £100 in one evening.
A beer costs £6, a cocktail £12, and having a meal will set you back on £30-£40 per person.
Groceries are available at more affordable prices at the discounts like Aldi, but regular and high-level supermarkets are more expensive. Your weekly bill for groceries can be around £200 for a family of four when shopping in the average supermarket. That comes to at least £800 per month on food for a family.
As a general rule, expats should budget around £500 – £600 per month for grocery shopping in London, while singles and students will be able to live off less.
Consumer spendings
On average, a British household spends £51 a week on restaurants and £76,90 on entertainment and culture, £21 on communications, and £24 on clothing. To summarise, it averages about £700 per month.
Public transport
Public transport prices are high in the UK. A London monthly pass for subway+train can cost you £360 per month.
Holidays
The money you will spend on holidays also should be considered, although it’s not a must-have expense. Yet, all Brits go on vacation from time to time. In fact, the average Brit goes on holiday twice a year, and it costs £850 each time.
That’s an additional £1,700 per year for a single. Families need to multiply it on amount of people.
Healthcare
Most healthcare bills are covered by the NHS – a public health insurance fund. You pay 12% of your salary in monthly taxes to this fund. Yet, not all treatments are covered, and it’s generally recommended to take out private insurance from reputable providers like Cigna Global.
Is £50,000 a good enough salary to live in London?
£50,000 isn’t a high salary for London but high enough to cover all your living expenses. In fact, it’s very close to the average wage across the city (£53,700). With a gross annual salary of £50,000, you will take home £37,537 after taxes, which is around £3,000 a month.
Yet, in the UK, the salary of £50,000 is above the average. It’s a very decent salary in the UK. Furthermore, an employee doesn’t pay high taxes on such income. They are still in the 20% bracket for income taxes.
If you consider buying real estate, the mortgage repayments could easily take up well over £10,000 annually.
Is £60k a good salary in London?
£60,000 is above average salary in London and gives you £3,500 per month after tax. It’s a good income for a young, single individual. For someone with a family and a partner earning a similar amount, even purchasing a house is possible.
Yet, a family or couple with a single income of £60,000 will have a moderate lifestyle in London.
Expenses with £60,000 income in London:
- House rent (furnished): If you want a double bedroom apartment in areas like Pimlico (1 km from Victoria), it would cost around £1,700 + £250 for bills = £1,950 (The bills include council tax, electricity, water, gas, internet).
- Food: Average £25 per day, assuming you will not buy fancy items or readymade food = £750 (£25 * 30 days).
- Dining out: On average, it will cost around £15-20 per person.
- Savings: £200
- General: Home items and others = £100
Total costs and savings: £3,000.
Is £70k a good salary in London?
£70,000 is averaging £4,050 monthly income after tax and is an excellent salary for a single person in London. It’s also a good salary for someone with a family. As a family, you can afford a moderate lifestyle in London. This income allows one to go out and travel often.
Is £95k a good enough salary in London?
A salary of £95,000 is much higher than London’s average and gives you an amazing lifestyle whether you are single or have a family. In fact, £95,000 gross per year or £63,793 net (£5,316 monthly) allows one to have a luxurious life. You will easily pay for your high rent or mortgage, travel, and all daily expenses.
The average salary in London is around £53,000; £ 95,000 is almost twice as much.
Is a £100k gross salary a good salary in London, UK?
£100,000 annually puts someone in the top 2%-3% or so of earners in the UK. Most British people would consider it an excellent salary. Even in expensive London, it would be regarded as an exceptionally good income.
With a gross annual salary of £100,000, as a single, you will get £66,644 or about £5,554 after tax every month. So you could easily afford the top end of average rents, and a mortgage would be even more manageable if you have savings for a deposit.
Let’s look into expenses you might have when earning £100,000 in London:
- £2,134 (mortgage)
- £150 (council tax
- £425 (commuting)
- £749 (eating out, entertainment, communications, clothing)
- £419 (groceries for a family of four)
- £567 (holidays)
= £1,055 left after all major costs.
Moreover, with such income, one might decide to get a car, which automatically adds around £2,000 in spending every year (tax, insurance, upkeep).
Taxes in the UK
While working in London, you also need to consider how much taxes will be deducted every month from your salary. Fortunately, UK taxes are significantly lower than in most European countries. It comes to about 24,90% of your gross income.
With an average annual salary of £40,862 (according to Glassdoor), you will take home £31,450. This means £2,621 in your pocket a month. Hence, you just paid around 24,1% in taxes.
The UK’s income tax is between 20% and 45% (20% is the most common). You can see rates for 2022 – 2023 below.
| England/Wales/Northern Ireland tax band | Taxable income | Income tax rate |
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571–50,270 | 20% |
| Higher rate | £50,271–150,000 | 40% |
| Additional rate | £150,001+ | 45% |
Social security – employee pays 12% of the salary; 2% for income above £4,189 per month. At the same time, the employer contributes another 13,8% (15,05% from April 2022) to the national insurance.
Expats, foreign employees, as well as business owners, can sign up for private health insurance, which will save them money.
For example, if you earn £4,000 a month gross or £48,000 a year, you pay:
- nothing on the first £9,568
- 12% on the next £38,432
- total in social security £4,611
| Your annual salary | Class 1 National Insurance rate |
|---|---|
| Less £9,568 | 0% |
| £9,568 – £50,270 | 12% |
| Over £50,270 | 2% |
Alternative to the national insurance in the UK
How much money do you need to live comfortably in London?
How much money you need to live comfortably comes to the cost of living. Generally, you can live comfortably on between £2,500 – £3,500, depending on the location and your personal situation.
London is one of the most expensive cities in the world. Hence, you will see high price tags on almost everything you encounter. Reducing the frequency of going and eating out will save you a significant amount every month.
With such income, you will cover all things related to accommodation, general expenses, and leisure activities.
Minimum salary you need to live in London
If living comfortably is out your rich, you might be wondering what the minimum income you need to live in London is.
Generally, rent will be the biggest expense, so if you want to cut the budget, you need to rent a room instead of a studio or flat.
Assuming a room can be rented for £750 in an average district, you will need to consider at least £400 for food and £200 for other expenses.
Therefore, the minimum net salary for survival in London is about £1,350 per month. It translates to a gross income of £1,500 per month or £18,000 annually – almost half less than the average salary in London.
