Thursday, July 23, 2009

What is London's average pay? Let's talk money


One of the main questions in the emails I received of late from people looking to move to London is the pay that they can expect. Can't really blame them as that would be the main thing I would be interested in if I were to uproot myself. Regardless of whether the economy is booming or heading south, the perennial question remain,

"What salary should I be looking at?"

Fortunately, BBC ran an article after Mayor Boris Johnson claimed that the £250,000 annual salary that he received for his weekly columns was chicken-feed, and that provided us with some interesting insights. For one, it turned out that the Mayor was wrong for £250,000 was certainly no chicken-feed. For those of you who would prefer figures to chunks of words, these were the findings of Office for National Statistics' Annual Survey of Hours and Earnings (ASHE) on UK salaries in 2008:

Mean annual salaries in 2008
Part-time and Full-time combined: £26,020
Solely Full-time: £31,323

Median annual salaries in 2008
Part-time and Full-time combined: £20,801
Solely Full-time: £25,123

Percentile annual salaries in 2008
Top 25% - £31,759
Top 10% - £44,881
Top 5% - £58,917
Top 1% - £118,027
Top 0.6% - £150,000

Before you give yourself a pat on the back or, well, go crying to your boss, keep in mind that the figures were based on a sample of those who paid taxes through PAYE (Pay As You Earn). Self employed people are naturally excluded. Depending on how you look at it, the real figures might be quite different from those reflected above.

That's for the entire UK. Obviously, the costs of living in Manchester is vastly different if you are holed up in central London. For those working in the City of London, the average pay is currently at £50,115 (source: Financial Times).

Bearing in mind that these figures are all before taxes, are they within your expectations?

Share/Bookmark Pin It



Lady Banana said...

An awful lot of us earn considerably less than you quote there :((

C K said...

@Lady Banana,
The figures quoted by survey is at best a rough gauge. The actual figures may be be way off. I guess what matters is how much we can put aside per month. Big earners tend to spend more as well...

EastCoastLife said...

Chicken feed!? 250,000 pounds is a lot of money! At least to me. :)

C K said...

That's nothing new. I seem to recall someone mentioned that S$600,000 was peanuts sometime back. :)

bbrian017 said...

This is really good money f you thin about it in comparison to Canadian or US dollars

C K said...

Had a friend who is based in the States pop by London the other day. He was lamenting on how much everything costs over here. I think it all adds up, doesn't it?

Anonymous said...

How recent are these numbersc compared to what was mentioned that 2.4 million are out of work? What industries has this effected?
But look at it this way, at least you could exchange your pounds for hump change in US dollars easily; compared to the reverse where we lose money...

C K said...

I quoted the figures from the article, which link was provided in my post. Perhaps you could refer to it for how recent the figures are.

That said, I think that came before the 2.4 million out of work news.

As I don't travel much to the States, the exchange rates doesn't affect me as much. However, I'm more concerned about Sterling to Singapore dollar exchange rates for obvious reasons. :)