Understanding Software Engineer Salary London: Hourly Rates and Annual Benchmarks

If you're a software engineer working in or considering a move to London, knowing the going rate is essential. The most reliable source for UK earnings data is the Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE). The latest figures for 2025 show that the median full-time software engineer salary in London is £72,000 per year. That translates to roughly £36.92 per hour if you work a standard 37.5-hour week.

But salaries vary widely. The bottom quarter of London software engineers earn £52,000 or less, while the top 10% earn £125,000 or more. This wide spread means you need to know where your offer sits on the distribution. The median is the most useful benchmark for most people — it's the midpoint of actual employees, not an average skewed by a few high earners.

Hourly to Annual Conversion: The Basics

To convert an hourly rate to an annual salary, use this rule of thumb:

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

For example, at 37.5 hours per week:

• £36.92/hour × 37.5 × 52 = £72,000/year
• £26.67/hour (25th percentile) × 37.5 × 52 = £52,000/year
• £48.72/hour (75th percentile) × 37.5 × 52 = £95,000/year

Remember that this assumes a steady contracted week with no unpaid overtime, bonuses, or salary sacrifice. Actual pay depends on your rota, holiday pay method, and any London weighting. Always check your contract and official guidance. For more help, use our Hourly to Salary converter or browse our salary articles for detailed breakdowns.

Full-Time vs Part-Time: Hours Per Week Assumptions

The ONS defines full-time as working more than 30 paid hours per week (or 25 for teaching professions). For software engineers, the standard full-time week is often 37.5 hours, but some companies use 35 or 40 hours. Part-time roles are those with 30 hours or fewer per week.

When comparing part-time offers, always look at the hourly rate rather than the annual salary. A part-time role at 20 hours per week paying £36.92/hour would give an annual salary of about £38,400 — roughly half the full-time median. But the hourly rate is the same, so the role is equally well-paid on a per-hour basis.

London weighting is another factor. Many employers add a location allowance of 10-20% to base salaries for London-based roles. The ONS ASHE data already captures actual pay in London, so the £72,000 median includes any such allowances. If you're comparing a London offer to a UK-wide figure, remember that the UK median for software developers is £56,914 (hourly £29.58) — about 21% lower than London.

How London Software Engineer Salaries Compare to Other Benchmarks

To put these figures in context:

• The overall UK median full-time annual salary is £39,039 (April 2025), so a London software engineer at £72,000 earns about 84% more than the typical UK worker.
• The National Living Wage for workers aged 21+ is £12.21 per hour (2025 rate), rising to £12.71 in 2026/27. At 37.5 hours, that's about £24,785 per year — less than half the London software engineer median.
• NHS pay scales for 2026/27 show Band 5 entry at £32,073 (roughly £16.40/hour) and Band 7 entry at £49,387 (£25.26/hour). Even a senior nurse at Band 7 earns less than the bottom quartile of London software engineers.

These comparisons highlight the premium on tech skills in London. But remember that cost of living in London is significantly higher, especially housing and commuting. A £72,000 salary in London may feel similar to £55,000 elsewhere in the UK.

Caveats and Important Notes

The ONS ASHE data is based on employer-reported PAYE records for a 1% sample of employees. It covers full-time employee jobs only — not freelance day rates, contract work, or company directors. Bonuses, equity, and overtime are not included in the base salary figures.

Hourly rates derived from annual salaries assume a consistent 37.5-hour week. If your contract specifies different hours, adjust accordingly. For example, a 40-hour week at the same annual salary would give a lower hourly rate. Always use the hourly rate published by ONS where available — for UK software developers, the ONS publishes a median hourly rate of £29.58, which is not simply the annual figure divided by hours.

London salaries can also vary by sector. Fintech, hedge funds, and big tech companies often pay above the 90th percentile, while startups and public sector roles may pay closer to the median or below. Use our salary data page to explore more granular breakdowns by industry and experience level.

Summary

The software engineer salary London median of £72,000 (hourly ~£36.92) is a solid benchmark for full-time roles. Use the conversion rule of hourly × hours × 52 to compare offers, but always check the hourly rate and consider London weighting. Part-time roles should be evaluated on hourly pay, not annual figures. For the most accurate picture, consult ONS ASHE tables and your own contract terms.

For more tools and guides, visit our hourly calculator or explore topics on UK salary benchmarks.