Understanding the average salary in London and how hourly rates convert to annual pay

When you're looking at job offers or planning your finances, knowing the average salary in London helps you gauge whether a pay rate is competitive. But salary figures can be confusing because they come in different forms: hourly rates, weekly pay, and annual salaries. This article explains the latest UK benchmarks from official sources and how to convert between hourly and annual pay, with a focus on London weighting and hours assumptions.

UK earnings benchmarks from ONS ASHE

The Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) provides the most authoritative picture. In April 2025, median gross weekly earnings for full-time employees were £766.60, up 5.3% from the previous year. That translates to a median full-time annual salary of £39,039 for those who had been in their job for at least a year. The median hourly rate (excluding overtime) for full-time employees was £19.67.

These figures are UK-wide. London typically has higher earnings due to higher living costs and employer London weighting. While the ONS publishes regional breakdowns, the search results did not include a specific London average. However, we know from NHS pay data that London weighting can add a significant premium.

National Living Wage and minimum rates

The National Living Wage (NLW) for employees aged 21 and over was £12.21 per hour from April 2025 (GOV.UK rates). This is the legal minimum, but many London employers pay above it. For younger workers (18-20) the rate was £10.00, and for 16-17 year olds £7.55. Apprentices have their own rate of £7.55.

When converting the NLW to an annual salary, a common assumption is 37.5 hours per week over 52 weeks: £12.21 × 37.5 × 52 = £23,809.50 per year. This is a useful benchmark for full-time minimum pay, but actual contracts may vary.

London weighting: NHS pay scales as an example

London weighting is an additional payment to compensate for higher living costs. The NHS publishes clear pay scales that include Higher Cost Area Supplements (HCAS). For 2026/27, NHS Employers published hourly rates inclusive of HCAS. For example, Band 6 entry step point hourly rate is £20.44 (including outer London HCAS). The HCAS itself is 20% of basic salary, subject to a minimum of £5,794 and a maximum of £8,746 per year.

NHS staff earnings estimates from NHS England Digital show that in NHS Trusts and CCGs in England, the mean annual basic pay per full-time equivalent (FTE) was £44,457 in the 12 months to June 2026. This is higher than the UK median, partly because many NHS roles are skilled and because London trusts pay more. However, this figure is for England as a whole, not just London.

Converting hourly rates to annual salary: the hours assumption

The standard conversion formula is:

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

For example, if you earn £20 per hour and work 37.5 hours per week, your annual salary would be £20 × 37.5 × 52 = £39,000. This matches the UK median closely.

But the ONS defines full-time as working more than 30 paid hours per week (or 25 for teaching). Many full-time roles are 35-40 hours. Part-time is defined as 30 hours or fewer. The median weekly earnings for part-time employees were £280.00 in April 2025, which at 20 hours per week would equate to £14.00 per hour. However, part-time hourly rates can be higher or lower depending on the role.

Important caveats: The ONS annual salary figure is based on employees who have been in the same job for at least a year and includes pay affected by absence (e.g., parental leave). Hourly-to-salary conversion assumes a steady contracted week with no unpaid overtime, bonuses, tips, or salary sacrifice. Actual pay depends on your rota, holiday pay method, London weighting, and overtime rules. Always check your contract and official GOV.UK guidance.

Part-time vs full-time: what it means for your pay

Part-time workers are entitled to the same hourly rate as full-time colleagues for equivalent work. However, their annual earnings are proportionally lower. For example, a part-time worker on 20 hours per week at £19.67 per hour would earn about £20,456 per year (20 × 19.67 × 52). That is roughly half the full-time median.

London weighting often applies pro-rata for part-time staff. So if you work part-time in London, you still receive a proportion of the London supplement.

Using our tools to compare

To quickly convert your hourly rate to an annual salary, use our Hourly to Salary calculator. You can adjust hours per week to match your contract. For more UK salary benchmarks, including regional data, visit our salary data page.

Summary

The average salary in London is not a single number, but you can benchmark against the UK median of £39,039 and the NLW of £12.21 per hour. London weighting typically adds 10-20% on top of basic pay, especially in public sector roles like the NHS. When converting hourly to annual, always state your hours per week assumption and remember that actual earnings may include overtime, bonuses, and other allowances. Use official sources like ONS ASHE and GOV.UK for the most reliable figures.