"London Weighting" - advantages and disadvantages?

Hello all,

I'd like to ask for your opinion. I'm currently in the stage of interviews for a job in public sector. In the job ad, they mentioned that I will get £3500 London weighting on top of the base salary.
This is the first time I'd be working in public sector and dealing with London weighting. I'm aware it's a supplement to salary due to high living costs in London. However, what are the advantages and disadvantages of it?
I'm aware that my total salary will be base + London weighting, however, are there any drawbacks to having London weighting excluded from the base salary? Would it be a better scenario if the weighting was included in the salary?

I'm just trying to understand if there's anything I need to be aware of in regards to this or it's just a cosmetic issue and, in reality, I won't notice the difference and shouldn't worry.

Also, how would it impact my future promotions and pay rises? The base pay would be increasing, but the weighting staying the same and still being added to the higher salary?

I appreciate your help.

Reply 1

999tigger

19

Original post by makkurokurosuke

Hello all,

I'd like to ask for your opinion. I'm currently in the stage of interviews for a job in public sector. In the job ad, they mentioned that I will get £3500 London weighting on top of the base salary.
This is the first time I'd be working in public sector and dealing with London weighting. I'm aware it's a supplement to salary due to high living costs in London. However, what are the advantages and disadvantages of it?
I'm aware that my total salary will be base + London weighting, however, are there any drawbacks to having London weighting excluded from the base salary? Would it be a better scenario if the weighting was included in the salary?

I'm just trying to understand if there's anything I need to be aware of in regards to this or it's just a cosmetic issue and, in reality, I won't notice the difference and shouldn't worry.

Also, how would it impact my future promotions and pay rises? The base pay would be increasing, but the weighting staying the same and still being added to the higher salary?

I appreciate your help.

It makes no difference
There arent pros and cons. You just get that amount v the standard salary.
If you start the same job outside London you wont get the weighting.

You have to decide if it means you are better, worse or just the same with the weighting and then take it or leave it.

Reply 2

makkurokurosuke

OP

10

Thank you for your insight. I basically thought there may be some advantages and disadvantages to it as it's not really counted as my base salary.

Reply 3

Zarek

21

I guess it’s just phrased like that so you know that it is a fixed addition (common to all) and if you are relocated elsewhere it will be lost. Things like this can be a bone of contention later when they might seem like a salary drop. It is added to your base salary and treated with standard tax rules.

Reply 4

History98

15

I think London weightings are way too low relative to the cost of living in London, the weighting generally won't even cover commuting costs which approach £4-5K for most people (i.e. tube + underground). Remember that the weighting forms part of your salary and you thus pay both NI and income tax on it. It can differ by type of staff but usually the across multiple pay band's. In universities for instance, there is usually a separate London supplement rate for academic staff and non-academic staff but the supplement stays the same across all salary grades.

IMO working in London makes sense for those whose professions command much higher salaries in London or those whose professions are basically only practiced in London. For the rest, I don't think moving to London for a London weighting is not worth it at all.

(edited 3 years ago)

Reply 5

makkurokurosuke

OP

10

Thank you everyone. It makes sense that I won't actually see any difference in practice when the weighting is just added to the salary. Do you know whether, on a payslip, this is added to base salary and displayed as a whole figure or is it a separate figure under 'supplement'?

"London Weighting" - advantages and disadvantages?

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