Indexed gross annual pay in London and England (2000/01 - 2024/25)
Last updated: January 2026
Next estimated update: December 2026
What does this indicator show?
This indicator shows how yearly pay for Londoners’ in employment has changed over time, adjusted for inflation. It shows gross pay - meaning before tax - and uses 2008 as baseline.
We can use it to see how yearly pay has changed for the average Londoner, as well as for higher earners (those at the 90th percentile) and lower earners (those at the 10th percentile). Further down the page, a chart shows how annual pay has changed in the last year, 5 years and 10 years for different income groups in London.
What does it tell us
Yearly pay for lower earners has increased - but still below 2008 levels
Over the last 10 years, annual pay for Londoners at the lower 10th percentile has increased by 10.7%. This group is also paid slightly more per year (3.2%) than they were at the start of the pandemic.
However, Londoners at the 10th percentile are still paid significantly less (10.3%) per year than they were in 2008. This is despite earning more per hour than in 2008, as shown by our hourly pay over time indicator. We explore this in more detail in our blog ‘How Londoners’ pay has changed over time’.
Yearly pay for higher earners jumps year-on-year
Londoners at the 90th percentile (those with incomes above 90% of other Londoners) have seen a significant increase in their yearly pay in the last year - by around 6%.
This means that this group’s pay has recovered to pre-pandemic levels. During the pandemic, this group saw their yearly pay decrease the most.
The median Londoner’s annual income has stayed around the same since the COVID-19 pandemic.
Yearly pay has increased the most for low-income Londoners in the last decade
Change in real annual gross pay by job pay percentile in London (2024/25)
This chart shows how Londoners in different income groups’ annual pay has changed in the last one, five and ten years. Comparing annual earnings between different time periods can give a clearer picture to annual pay growth or decline over time.
When looking at the change in annual earnings within the last year (in 2024/25 real terms), all income groups apart from the lowest-earning 10th percentile saw increases in their annual gross pay. Those in the 90th percentile have seen the most significant increase with gross pay rising by 6% in 2024/25.
When looking at the longer term 10 year growth, the bottom percentiles fare better than the top job pay percentiles, with annual gross pay increasing most significantly in the 20th percentile by 16.8% since 2014/15.
This is compared to more modest increases of 4.7% for the 50th percentile (median) and 4.3% for the 70th percentile. Individuals in the 90th percentile have seen a 9.3% increase in annual pay in the last decade.
This is different to how Londoner’s pay per hour has changed over time, illustrating the complicated relationship between hours worked and income. We explore this in more detail in our blog about how Londoners' pay has changed over time.
Want to know more?
If you want to explore this data in more depth, check the 'data source and notes' button on the above charts. This will tell you where the data comes from, where you may be able to dig deeper.