Pay per year

This indicator shows how yearly pay for Londoners’ in employment (before tax, adjusted for inflation) has changed over time, using 2008 as a baseline. On average, Londoners are paid 8.9% less (as of 2023) than they were in 2008. 

Yearly pay for lower earners

Over the last 10 years, annual pay for Londoners at the lower 10th percentile has increased by 9%. This group are also paid slightly more per year (2.2%) than they were at the start of the pandemic.

However, Londoners at the 10th percentile are still paid significantly less (11.2%) 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. 

Yearly pay for higher earners

Londoners at the 90th percentile (those with incomes above 90% of other Londoners) are paid 8.3% less than they were in 2008. 

Before the pandemic, their yearly earnings had almost reached 2008 levels. However, during the pandemic this group saw their yearly earnings drop by 5 percentage points. It has broadly remained the same since. The 50th percentile (or median) dipped with the start of pandemic, recovered in 2021/22 and dipped again in 2022/23.

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 2022/23 real terms) earnings stayed essentially the same for the lowest earning 10th, 20th and 30th percentiles, declined for 40th to 70th, and only increased for the 90th percentile - who saw a 0.7% increase. 

However, 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 8.6% since 2012/13 in the bottom 10th percentile compared to more modest increases of 1.7% for the 50th percentile (median) and 1.2% for the 90th percentile.