Software Engineer Salaries in London 2025: Big Tech vs Startups

London's tech sector is the largest in Europe, and despite post-2022 corrections, salaries at the top remain world-class. But the gap between Big Tech and startup pay is wide — here is how to think about the trade-offs.

Big Tech (Google, Meta, Amazon, Apple, Microsoft)

Total compensation at senior level (L5/E5 equivalent) reaches £180,000–£280,000 including RSUs. Base salaries range £95,000–£145,000. These roles are competitive and primarily sourced through referrals and structured interviews.

Scale-ups and Late-Stage Startups

London scale-ups (Revolut, Monzo, Checkout.com, Deliveroo) pay £80,000–£150,000 for senior engineers, with equity potentially valuable at IPO. Base pay is 15–25% below Big Tech but working culture tends to be more dynamic.

Early-Stage Startups

Seed and Series A startups pay £65,000–£110,000 for senior roles. Equity is larger (0.1%–1%+ for early engineers) but risk-adjusted value is low. Best for those who want to shape a product from scratch.

Tax Considerations

London's 45% top rate kicks in at £125,140. For high earners, salary sacrifice into a pension (SIPP) is a powerful tool to reduce taxable income. Effective tax on a £120,000 salary is approximately 40–42%.