What counts as a good salary in London depends entirely on what you're comparing against. Good relative to the national average? Good relative to your role's market rate? Good enough to live comfortably? Good enough to save meaningfully? Each question yields a different number — and the answer that matters most is usually the one your current employer would rather you didn't know.
This guide covers what average and above-average salaries actually look like in London in 2026, broken down by sector and role, with context on take-home pay, cost of living, and how to benchmark your specific situation.
What is the average salary in London?
The median gross annual salary for full-time workers in London is approximately £44,000–£48,000, according to ONS Annual Survey of Hours and Earnings (ASHE) data. But this figure spans all sectors and experience levels — it includes retail workers, hospitality staff, healthcare workers, and public sector employees alongside the tech, finance, and professional services workers that dominate most people's sense of "London salaries."
For knowledge-work and professional roles in tech, finance, and business services — which is what most people reading this are asking about — the relevant benchmark is considerably higher. The median for this segment is closer to £55,000–£70,000, depending on how you define it.
The London premium over the rest of the UK is real: London median salaries are approximately 25–35% above the national median, driven by the concentration of high-paying industries and the higher cost of living that employers have to compensate for.
What is a good salary in London by role?
Software engineers
London has the highest software engineering salaries in Europe. The market has remained competitive despite the broader tech sector correction of 2023–24.
- Junior (0–2 years): £42,000–£58,000 (median ~£50,000)
- Mid-level (3–6 years): £75,000–£105,000 (median ~£90,000)
- Senior (7+ years): £105,000–£145,000 (median ~£120,000)
If you're a mid-level engineer earning below £70,000 in London, you're likely below market — particularly at a company that raised Series B or later. If you're senior and earning below £95,000, there's almost certainly a gap worth addressing.
See the full Software Engineer salary guide for London →
Product managers
Product management in London pays well below engineering at junior levels but converges at the senior end. The London PM market is one of the most developed in Europe.
- Junior PM (0–2 years): £48,000–£65,000 (median ~£55,000)
- Mid-level PM (3–6 years): £75,000–£100,000 (median ~£88,000)
- Senior PM (6–9 years): £95,000–£130,000 (median ~£110,000)
See the full Product Manager salary guide for London →
Data scientists
Data science and ML engineering are among the fastest-growing compensation segments in London tech. Roles with production ML responsibility command particularly strong premiums.
- Junior DS (0–2 years): £40,000–£58,000 (median ~£48,000)
- Mid-level DS (3–6 years): £75,000–£100,000 (median ~£87,000)
- Senior DS (7+ years): £100,000–£135,000 (median ~£115,000)
Data analysts
- Junior (0–2 years): £28,000–£40,000 (median ~£33,000)
- Mid-level (3–6 years): £42,000–£65,000 (median ~£52,000)
- Senior (7+ years): £60,000–£85,000 (median ~£70,000)
Marketing managers
- Junior / executive (0–2 years): £28,000–£38,000 (median ~£32,000)
- Mid-level manager (3–6 years): £50,000–£75,000 (median ~£62,000)
- Senior / head of (6+ years): £75,000–£105,000 (median ~£87,000)
Operations and finance professionals
- Mid-level (3–6 years): £55,000–£80,000 (median ~£65,000)
- Senior (6+ years): £75,000–£110,000 (median ~£88,000)
What does take-home pay look like in London?
UK income tax and National Insurance contributions reduce gross salary significantly. At London salary levels, the effective rate (income tax + employee NI) typically results in a net-to-gross ratio of around 65–70% for mid-range salaries, falling toward 60–65% at higher salary levels.
Some examples (approximate, 2025/26 tax year, no pension deductions or other adjustments):
- £50,000 gross → approximately £37,000–£38,500 net
- £70,000 gross → approximately £49,000–£51,000 net
- £90,000 gross → approximately £60,000–£62,000 net
- £120,000 gross → approximately £76,000–£79,000 net (note: personal allowance is tapered away above £100,000)
Pension contributions (employer and employee) are made before tax for most employees, which reduces your taxable income and improves the net position — but also means a portion of your gross salary isn't immediately available as take-home pay.
What does a London salary actually buy you?
London has one of the highest costs of living of any city in Europe. The figures that matter most for most professionals:
Rent: A one-bedroom apartment in Zone 2–3 (accessible to central London by tube) typically costs £1,800–£2,400/month in 2026. Zone 1 is significantly higher. Flatsharing is common and reduces this substantially — a room in a shared house in Zone 2–3 typically costs £1,100–£1,600/month.
Transport: A monthly Travelcard for Zones 1–2 costs approximately £165–£175/month. Many professionals commute from Zone 3–6 and pay more.
General living: Food, utilities, socialising, and general expenses for a single professional in London typically add up to £1,200–£1,800/month beyond rent and transport.
Rule of thumb for London: To live independently (renting alone) in London without significant financial pressure, most professionals need at least £55,000–£65,000 gross per year. To save meaningfully and have financial flexibility, most aim for £75,000+. Above £90,000 gross, you have strong financial comfort by London standards — assuming you're not spending on a mortgage deposit in the meantime.
Is £50,000 a good salary in London?
At £50,000 gross (~£37,500 net), you can live independently in London — sharing a flat or renting in Zone 3–4 — but saving meaningfully is difficult after rent and living costs. For a junior to early-mid-level professional in a non-tech field, it's a reasonable salary. For a mid-level professional in tech, product, or finance, it's below market — a clear signal to benchmark and potentially negotiate.
Is £70,000 a good salary in London?
£70,000 gross (~£50,000 net) is a solid salary in London. You can rent a one-bedroom in Zone 2–3, live comfortably, and save modestly. For most knowledge-work roles, it's around or slightly above the market median. For senior engineering or senior PM roles, it's below market. For mid-level marketing or operations, it's above median. Whether it's "good" depends entirely on your role.
Is £100,000 a good salary in London?
£100,000 gross (~£65,000–£67,000 net, noting that the personal allowance starts tapering at £100,000) is a strong salary by London standards. It puts you comfortably in the upper quartile for most professional roles, allows for meaningful saving, and provides genuine financial flexibility. For senior engineering and senior PM roles, it's around the market median — so "good" in absolute terms, but not exceptional relative to your peers.
London vs other European cities: is the premium worth it?
London pays the highest gross salaries in Europe for most professional roles. But the purchasing power gap is narrower than the gross gap:
- A mid-level software engineer earning £90,000 in London has broadly similar purchasing power to one earning €85,000 in Amsterdam — once rent, tax, and living costs are factored in.
- At higher salary levels (£120,000+), London's higher gross more clearly translates into better purchasing power — the premium volume outweighs the cost premium.
For lifestyle factors — space, commute quality, work-life balance — cities like Berlin, Amsterdam, and Lisbon often compare favourably. The "London premium" is most defensible for professionals at the top of their field, where the concentration of high-paying employers creates opportunities that don't exist elsewhere in Europe.
How to benchmark your specific London salary
The ranges above give a useful framework, but your specific market rate depends on your role, seniority, technical skills, industry, and the type of company you work for. Two engineers in London with the same years of experience can earn £30,000 apart depending on their specialisation and employer.
Use our free salary checker to see your percentile for your specific role and experience level. If you're below the 40th percentile, there's a clear case for reviewing your compensation — either by negotiating internally or testing the external market. Below the 30th percentile is a significant gap worth acting on promptly.