London weighting explained
London weighting is extra pay that some employers add for working in or near London, to help with the higher cost of living. It isn't required by law, so the amount depends on your employer. And it's taxed in exactly the same way as the rest of your salary.
How it works
On your payslip it might be called London weighting, a London allowance or a high cost area supplement. Some employers don't show it separately at all. Instead, they pay London staff on a higher pay scale.
Most schemes have up to three zones, based on where your workplace is:
- Inner London: central boroughs. This usually pays the most.
- Outer London: the rest of Greater London.
- Fringe: some areas just outside London, often in the Home Counties.
Each employer decides which offices fall in which zone, so check your contract rather than going by postcode alone.
How much is it?
- NHS (Agenda for Change): the High Cost Area Supplement is a percentage of basic pay, with a minimum and maximum. In 2026/27 it's 20% in inner London (£5,794 to £8,746), 15% in outer London (£4,870 to £6,137) and 5% in the fringe (£1,346 to £2,270). The NHS pay calculator works it out for every band.
- Teachers in England: instead of a separate allowance, schools use higher pay ranges for inner London, outer London and the fringe.
- Police, civil service, universities and private employers: each set their own amounts, which can range from a few hundred pounds to several thousand a year.
There's no official "typical" amount, because every employer sets its own. The calculator's London weighting option fills in example amounts (£4,000 inner, £2,500 outer, £1,000 fringe) as a starting point. Replace them with your employer's figure for an accurate result.
How much you actually keep
London weighting is taxed like salary: income tax, National Insurance and any student loan all apply. Here's a £4,000 inner London weighting on a £35,000 salary in 2026/27:
| Extra take-home a year | Per month | You keep | |
|---|---|---|---|
| No pension or student loan | £2,880.00 | £240.00 | 72% |
| With a Plan 2 student loan | £2,520.00 | £210.00 | 63% |
| With a 5% workplace pension | £2,720.00 | £226.67 | 68% |
With the pension, another £320 a year also goes into your pension: your 5% plus 3% from your employer. That's because London weighting usually counts towards pensionable pay.
If the weighting takes you over the £50,270 higher-rate threshold, you keep less of it. On a £48,000 salary, £5,000 of London weighting adds £3,217.80 to your take-home, because £2,730 of it is taxed at 40%.
Is it enough?
After tax, a £4,000 allowance is worth about £240 a month. When comparing a London job with one elsewhere, compare what's left after tax, commuting and housing costs, not the headline salary.
Questions to ask your employer
- Is London weighting pensionable?
- Does it count towards overtime, holiday pay and sick pay?
- Does it go up each year with pay rises?
- What happens if you move office, or work partly from home?
Add your London weighting to the calculator.
Try £4,000 inner LondonSources
- NHS Employers: Pay scales for 2026/27 (High Cost Area Supplements)
- GOV.UK: School teachers' pay and conditions
- GOV.UK: Income Tax