Understanding the Average London Salary 2025

If you are comparing hourly jobs with salaried offers in London, knowing the latest benchmarks is essential. The phrase "average London salary 2025" often comes up in job searches, but the most authoritative source—the Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE)—does not publish a single London average in its headline release. Instead, it provides UK-wide medians, with London figures available in detailed tables. This article explains what the 2025 data tells us, how to convert between hourly and annual pay, and what the National Living Wage means for your earnings.

What the ONS ASHE 2025 Data Shows

The ONS ASHE for April 2025 reports:

• Median weekly earnings for full-time UK employees: £766.60 (up 5.3% from 2024).
• Median gross annual earnings for full-time employees: £39,039 (up 4.3% from £37,439 in 2024).
• Median hourly earnings (excluding overtime) for full-time employees: £19.67 (up 5.4% from £18.66).

These figures are for the whole UK. London typically has higher median earnings—often 20–30% above the national median—but the exact 2025 London median is not included in the latest ASHE bulletin. You can find regional breakdowns in ONS Table 29, which is referenced in the release but not reproduced here.

Converting Hourly Rates to Annual Salary

When you see an hourly rate in a job advert, you can estimate the annual salary using a simple formula:

Annual salary ≈ hourly rate × hours per week × 52 weeks

For a standard full-time week of 37.5 hours (common in many sectors):

• £12.21/hr (National Living Wage) → £12.21 × 37.5 × 52 = £23,809.50
• £19.67/hr (UK median) → £19.67 × 37.5 × 52 = £38,356.50 (close to the ONS annual median)
• £26.94/hr (high pay threshold) → £26.94 × 37.5 × 52 = £52,533

Remember that this is a rule of thumb. Actual annual pay may differ due to overtime, bonuses, unpaid leave, or salary sacrifice. The ONS notes that ASHE annual figures are not directly comparable to weekly or hourly figures because they capture pay for employees who have been in the job for a year or more and include pay affected by absence. Always check your contract and use our Hourly to Salary tool for a quick estimate.

National Living Wage and Minimum Wage 2025

From April 2025, the National Living Wage (NLW) applies to employees aged 21 and over at £12.21 per hour. Lower rates apply:

• Age 18–20: £10.00/hr
• Age 16–17: £7.55/hr
• Apprentices (under 19 or first year): £7.55/hr

These rates are set by the government and are a legal minimum. For a 37.5-hour week, the NLW annual equivalent is about £23,809.50. Many London employers pay above the NLW, often adding a London weighting or location allowance.

London Weighting and Regional Differences

London weighting is an extra payment designed to offset higher living costs. It can be a flat amount (e.g., £3,000–£5,000 per year) or a percentage of base salary. When comparing an hourly job in London with a salaried role elsewhere, factor in this allowance. For example, a role advertised at £25 per hour in London might equate to an annual salary of £48,750 (37.5 hrs × 52 weeks) plus a London weighting of £4,000, giving a total of £52,750. Without the weighting, the same hourly rate outside London would be lower.

Low and High Pay Thresholds

The ONS also defines low and high pay based on median hourly earnings:

• Low pay: less than two-thirds of median hourly pay = £11.97/hr (2025).
• High pay: more than 1.5 times median hourly pay = £26.94/hr (2025).

In April 2025, only 2.5% of employee jobs were low-paid—the lowest proportion since records began in 1997. Meanwhile, 23.2% of jobs were high-paid. These thresholds help you see where your hourly rate sits relative to the national distribution.

Practical Tips for Job Seekers

When you receive a job offer, always convert the hourly rate to an annual figure using the 37.5-hour week assumption, but also ask about:

• Overtime rates (often 1.5× or 2×)
• Holiday pay (statutory minimum 5.6 weeks)
• Pension contributions and salary sacrifice schemes
• London weighting or regional allowances

For more detailed benchmarks, explore our salary data page, which includes UK and regional pay scales. You can also read our salary articles for guides on negotiating pay and understanding your contract.

Summary

The average London salary 2025 is not a single published figure, but the UK median of £39,039 provides a starting point. London roles typically pay more, and hourly rates can be converted to annual equivalents using the formula above. Always check official sources like ONS ASHE and GOV.UK for the latest rates, and use our tools to make informed comparisons between hourly and salaried offers.