Understanding the London Median Salary: Hourly, Weekly, and Annual Pay in 2025

Understanding the London Median Salary: Hourly, Weekly, and Annual Pay

When looking at pay in the UK, you’ll often see figures quoted as an hourly rate, a weekly wage, or an annual salary. Each tells a different story, and for workers in London the picture is distinct. The London median salary – the middle point of earnings for full-time employees in the capital – is a key benchmark for job seekers and employees comparing offers or negotiating pay.

Hourly rates: the foundation of pay

Statutory minimum hourly rates are set by the government. In April 2025, the National Living Wage for employees aged 21 and over was £12.21 per hour. This rose to £12.71 from April 2026. For younger workers, the National Minimum Wage applies: £10.85 for ages 18–20, and £8.00 for under-18s and apprentices. These are legal floors – you cannot be paid less.

Beyond the legal minimum, many employers choose to pay the real Living Wage, which is voluntarily calculated based on living costs. The UK rate is £13.45 per hour, while the London Living Wage is £14.80 per hour. This higher London rate reflects the significantly higher cost of housing, travel, and other essentials in the capital.

Hourly rates are the building block, but they don’t tell you what you’ll actually earn in a week or a year. That depends on the number of hours you work.

Weekly pay: the London median salary in context

The most reliable official source for earnings is the Office for National Statistics’ Annual Survey of Hours and Earnings (ASHE). For April 2025, the median gross weekly pay for full-time employees across the UK was £766.60. In London, that figure was £958.20 – a full 25% higher. This is the headline London median salary figure on a weekly basis.

Why the gap? London has a higher concentration of professional, financial, and tech jobs that pay more. But it also has higher living costs. The ONS notes that median weekly earnings increased across all regions, with Northern Ireland seeing the fastest growth (7.4%), but London remains the highest in absolute terms.

It’s important to remember that weekly pay includes both your hourly rate and the hours you are paid for. A full-time worker in London might work a standard 37.5-hour week, but some roles require longer hours. The median weekly figure captures that mix.

Annual salary: the big picture

For the UK as a whole, median gross annual earnings for full-time employees who had been in their job for at least a year were £39,039 in April 2025. That’s a 4.3% increase on the previous year. The ONS does not publish a separate annual median for London in these releases, but you can estimate it from the weekly figure: £958.20 multiplied by 52 weeks gives approximately £49,826. However, this is a rough calculation – actual annual pay may vary due to unpaid leave, bonuses, or overtime.

Annual salary is what most job adverts quote, but it’s worth checking whether that figure is based on a 35-hour week or a 40-hour week. The hourly equivalent can differ significantly.

Comparing the three measures

• Hourly rate is the clearest way to compare jobs with different hours. The London Living Wage of £14.80 is a useful benchmark for lower-paid roles.
• Weekly pay is what you actually receive in your pocket each week (before deductions). The London median of £958.20 is the most current official figure.
• Annual salary gives a sense of total earnings over the year, but can be misleading if hours vary or if the role is seasonal.

For job seekers, understanding these differences helps when evaluating offers. A job that pays £25,000 a year might sound modest, but if it’s based on a 30-hour week, the hourly rate could be competitive. Conversely, a £50,000 salary for a 50-hour week may work out less per hour than a £40,000 role with a 35-hour week.

Caveats and considerations

The ASHE data is based on a 1% sample of PAYE records and is provisional for 2025. It covers only employees – not the self-employed. The London median figure is for full-time employees on adult rates, so it excludes part-time workers and those under 21. Also, the median is the middle point: half of full-time London workers earn more, half earn less. Your own pay will depend on your industry, experience, and employer.

For more detailed breakdowns by occupation, region, and age, visit our pay data page. And if you’re negotiating a pay rise or starting a new job, our pay guides offer practical tips on understanding your worth.

The real Living Wage and take-home pay

While the statutory minimums are the legal baseline, the real Living Wage is increasingly adopted by employers who want to ensure their staff can afford a decent standard of living. In London, that rate is £14.80 per hour. If you work a 37.5-hour week at that rate, your gross weekly pay would be £555, and your annual salary £28,860. That’s well below the London median of £958 per week, illustrating how the median is pulled up by higher earners.

Take-home pay is what matters after tax, National Insurance, and pension contributions. Use an online calculator to see how much you’d actually receive from a given salary.

Summary

The London median salary – as measured by median gross weekly pay for full-time employees – stood at £958.20 in April 2025. That’s about 25% above the UK median of £766.60. Hourly rates range from the statutory National Living Wage of £12.71 to the voluntary London Living Wage of £14.80. Annual salaries for London full-time workers are likely to average around £49,800, but official annual figures for London are not separately published.

When comparing job offers, always check the hourly rate, the weekly hours, and the annual salary. Each measure gives a different perspective, and knowing the London median helps you gauge whether an offer is fair.